Dinklage corp. has 7 million shares of common stock outstanding. the current share price is $68, and the book value per share is $8. the company also has two bond issues outstanding. the first bond issue has a face value of $70 million, a coupon rate of 6 percent, and sells for 97 percent of par. the second issue has a face value of $40 million, a coupon rate of 6.5 percent, and sells for 108 percent of par. the first issue matures in 21 years, the second in 6 years. suppose the most recent dividend was $3.25 and the dividend growth rate is 5 percent. assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. both bonds make semiannual payments. the tax rate is 21 percent. what is the company’s wacc

Which of the following statements is correct? large corporations are taxed more favorably than sole proprietorships. corporate stockholders are exposed to unlimited liability. due to limited liability, unlimited lives, and ease of ownership transfer, the vast majority of u.s. businesses (in terms of number of businesses) are organized as corporations. most businesses (by number and total dollar sales) are organized as partnerships or proprietorships because it is easier to set up and operate in one of these forms rather than as a corporation. however, if the business gets very large, it becomes advantageous to convert to a corporation, mainly because corporations have important tax advantages over proprietorships and partnerships. most business (measured by dollar sales) is conducted by corporations in spite of large corporations’ often less favorable tax treatment, due to legal considerations related to ownership transfers and limited liability.

Which two of the following are benefits of consumer programs

Verizon communications, inc., provides the following footnote relating to its leasing activities in its 10-k report. the aggregate minimum rental commitments under noncancelable leases for the periods shown at december 31, 2010, are as follows: years (dollars in millions) capital leases operatingleases 2011 $97 $1,898 2012 74 1,720 2013 70 1,471 2014 54 1,255 2015 42 1,012 thereafter 81 5,277 total minimum 418 $ 12,633 rental commitments less interest and (86) executory costs present value of 332 minimum lease payments less current (75) installments long-term obligation $257 at december 31, 2010 (a) confirm that verizon capitalized its capital leases using a rate of 7.4 %. (b) compute the present value of verizon's operating leases, assuming an 7.4% discount rate and rounding the remaining lease term to 3 decimal places. (use a financial calculator or excel to compute. do not round until your final answers. round each answer to the nearest whole number.)