Peter's Audio has a yield to maturity on its debt of 6.4 percent, a cost of equity of 11.4 percent, and a cost of preferred stock of 9 percent. The firm has 115 shares of common stock outstanding at a market price of $24 a share. There are 15 shares of preferred stock outstanding at a market price of $40 a share. The bond issue has a total face value of $1,500 and sells at 97 percent of face value. If the tax rate is 25 percent and assuming all interest is tax deductible. Required:
What is the weighted average cost of capital?

Match the type of agreements to their descriptions. will trust living will prenuptial agreement

Sonic corp. manufactures ski and snowboarding equipment. it has estimated that this year there will be substantial growth in its sales during the winter months. it approaches the bank for credit. what is the purpose of such credit known as? a. expansion b. inventory building c. debt management d. emergency maintenance

Garfield corporation is considering building a new plant in canada. it predicts sales at the new plant to be 50,000 units at $5.00/unit. below is a listing of estimated expenses. category total annual expenses % of annual expense that are fixed materials $50,000 10% labor $90,000 20% overhead $40,000 30% marketing/admin $20,000 50% a canadian firm was contracted to sell the product and will receive a commission of 10% of the sales price. no u.s. home office expenses will be allocated to the new facility. the contribution margin ratio for garfield corporation is