subject
Business, 14.12.2019 04:31 Areyano8299

Quiz during the class. calculate the wacc which represents the "hurdle rate" for a typical project with average risk using midpoint of the range of the marginal cost of common equity using retained earnings or new earnings. data: a 15-year, 12% coupon, semiannual payment non-callable bonds sell for $1,153.72. new bonds will be privately placed with no flotation cost. a 10%, $1,000 par value, annually dividend, perpetual preferred stock sells for $1,111. both an existing common stock and a new common stock issue, which incurs a flotation cost of 15% of the proceeds, sells for $50. d1 = $4.3995 and g = 5%. b = 1.2; rrf = 7%; rpm = 6%. bond-yield risk premium = 4%. target capital structure: 30% debt, 10% preferred, 60% common equity. tax rate is 40%. hints: use the formula, wacc = wdrd(1 – t) + wprp + wcrs

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 11:30
4.     chef a says that broth should be brought to a boil. chef b says that broth should be kept at an even, gentle simmer. which chef is correct? a. neither chef is correct. b. chef a is correct. c. both chefs are correct. d. chef b is correct. student c   incorrect which is right answer
Answers: 2
question
Business, 22.06.2019 23:40
8. problems and applications q8there are four consumers willing to pay the following amounts for haircuts, and there are four haircutting businesses with the following costs: consumers' willingness to payyvette: $35cho: $15sean: $45bob: $25firms' costsfirm a: $40firm b: $20firm c: $10firm d: $30each firm has the capacity to produce only one haircut.for should be given.which businesses should cut hair? check all that apply.firm afirm bfirm cfirm dwhich consumers should have their hair cut? check all that apply.bobchoseanyvettethe maximum possible total surplus is
Answers: 3
question
Business, 23.06.2019 02:40
The mayflower, a seafood restaurant, had the following liabilities by the end of 2015: accounts payable $60,000 wages payable $100,000 unearned revenue $125,000 (60% will be earned in 2016) notes payable $140,000 ($45,000 payable in 2016) what is the amount that the mayflower should report as total current liability on its balance sheet as of december 31, 2015?
Answers: 2
question
Business, 23.06.2019 02:40
Rate of return, standard deviation, coefficient of variation personal finance problem mike is searching for a stock to include in his current stock portfolio. he is interested in hi-tech inc.; he has been impressed with the company's computer products and believes hi-tech is an innovative market player. however, mike realizes that any time you consider a technology stock, risk is a major concern. the rule he follows is to include only securities with a coefficient of variation of returns below 1.07. mike has obtained the following price information for the period 2015 through 2018:hi-tech stock, being growth-oriented, did not pay any dividends during these 4 years. a. calculate the rate of return for each year, 2015 through 2018, for hi-tech stock. b. assume that each year's return is equally probable and calculate the average return over this time period. c. calculate the standard deviation of returns over the past 4 years. (hint: treat this data as a sample.) d. based on b and c determine the coefficient of variation of returns for the security. e. given the calculation in d what should be mike's decision regarding the inclusion of hi-tech stock in his portfolio?
Answers: 3
You know the right answer?
Quiz during the class. calculate the wacc which represents the "hurdle rate" for a typical project w...
Questions
question
English, 09.02.2021 02:40
question
Mathematics, 09.02.2021 02:40
question
Mathematics, 09.02.2021 02:40
question
Health, 09.02.2021 02:40
question
English, 09.02.2021 02:40
question
Mathematics, 09.02.2021 02:40
Questions on the website: 13722365