Tanten Company has 20% debt and 80% equity. The borrowing rate is 12%.
(1) If you own 4% of the stock of Abacus, what is your dollar return if the company has net operating income of $750,000 and the over all capitalization rate , Ko, is 15%? Value of the firm is 500,000
(2) What is the implied required rate of return on equity?
3) What is the market value of stock and the return of stock?
4) What is the market value of debt?
Answers: 3
Another question on Business
Business, 22.06.2019 07:00
What is the state tax rate for a resident of arizona whose annual taxable income is $18,000?
Answers: 1
Business, 22.06.2019 11:00
Abank provides its customers mobile applications that significantly simplify traditional banking activities. for example, a customer can use a smartphone to take a picture of a check and electronically deposit into an account. this unique service demonstrates the bank’s desire to practice which one of porter’s strategies?
Answers: 3
Business, 22.06.2019 14:30
If a product goes up in price, and the demand for it drops, that product's demand is a. elastic b. inelastic c. stable d. fixed select the best answer from the choices provided
Answers: 1
You know the right answer?
Tanten Company has 20% debt and 80% equity. The borrowing rate is 12%.
(1) If you own 4% of the sto...
Questions
Mathematics, 18.03.2021 02:40
History, 18.03.2021 02:40
English, 18.03.2021 02:40
History, 18.03.2021 02:40
English, 18.03.2021 02:40
Mathematics, 18.03.2021 02:40
Mathematics, 18.03.2021 02:40
Mathematics, 18.03.2021 02:40
Mathematics, 18.03.2021 02:40
