Business, 05.12.2019 18:31 LouieHBK

Situational software co. (ssc) is trying to establish its optimal capital structure. its current capital structure consists of 40% debt and 60% equity; however, the ceo believes that the firm should use more debt. the risk-free rate, rrf, is 3%; the market risk premium, rpm, is 7%; and the firm's tax rate is 40%. currently, ssc's cost of equity is 15%, which is determined by the capm. what would be ssc's estimated cost of equity if it changed its capital structure to 50% debt and 50% equity? round your answer to two decimal places. do not round intermediate steps.

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 14:00

Jagjit company designs and builds retaining walls for individual customers. on august 1, there were two jobs in process: job 93 with a beginning balance of $8,650, and job 94 with a beginning balance of $7,270. jagjit applies overhead at the rate of $9 per direct labor hour. direct labor wages average $16 per hour. data on august costs for all jobs are as follows:

Answers: 3

Answer

Business, 21.06.2019 22:10

Sarah needs to complete financial aid packets. during which school year would she do this? sophomore freshman senior junior

Answers: 2

Answer

Business, 22.06.2019 11:30

Margaret company reported the following information for the current year: net sales $3,000,000 purchases $1,957,000 beginning inventory $245,000 ending inventory $115,000 cost of goods sold 65% of sales industry averages available are: inventory turnover 5.29 gross profit percentage 28% how do the inventory turnover and gross profit percentage for margaret company compare to the industry averages for the same ratios? (round inventory turnover to two decimal places. round gross profit percentage to the nearest percent.)

Answers: 2

Answer

Business, 22.06.2019 17:50

The management of a supermarket wants to adopt a new promotional policy of giving a free gift to every customer who spends > a certain amount per visit at this supermarket. the expectation of the management is that after this promotional policy is advertised, the expenditures for all customers at this supermarket will be normally distributed with a mean of $95 and a standard deviation of $20. if the management wants to give free gifts to at most 10% of the customers, what should the amount be above which a customer would receive a free gift?

Answers: 1

Answer

You know the right answer?

Situational software co. (ssc) is trying to establish its optimal capital structure. its current cap...

Questions