Bay beach industries wants to maintain their capital structure of 40% debt and 60% equity. the firm's tax rate is 34%. the firm can issue the following securities to finance the investments: bonds: mortgage bonds can be issued at a pre-tax cost of 9 percent. debentures can be issued at a pre-tax cost of 10.5 percent. common equity: some retained earnings will be available for investment. in addition, new common stock can be issued at the market price of $46. flotation costs will be $3 per share. the recent common stock dividend was $3.60. dividends are expected to grow at 6% in the future. what is the cost of capital using mortgage bonds and internal equity?

Fabian got into an accident on his way to work. he had multiple fractures in his leg. his doctor advised strict bed rest for at least three months.fabian is a freelance wildlife photographer who usually works on a contract basis, and this is his primary source of income. before the accident, fabian was planning his finances. which goal of his financial plan would fabian in getting through without pay for the next three months? the goal that requires the creation of a/an would fabian get through the next three months without pay.

Anew firm is developing its business plan. it will require $615,000 of assets, and it projects $450,000 of sales and $355,000 of operating costs for the first year. management is reasonably sure of these numbers because of contracts with its customers and suppliers. it can borrow at a rate of 7.5%, but the bank requires it to have a tie of at least 4.0, and if the tie falls below this level the bank will call in the loan and the firm will go bankrupt. what is the maximum debt ratio the firm can use? (hint: find the maximum dollars of interest, then the debt that produces that interest, and then the related debt ratio.)a. 41.94%b. 44.15%c. 46.47%d. 48.92%e. 51.49%

You have $5,300 to deposit. regency bank offers 6 percent per year compounded monthly (.5 percent per month), while king bank offers 6 percent but will only compounded annually. how much will your investment be worth in 17 years at each bank