Business, 01.07.2021 21:50 dedgefield
Deep Mines has 43,800 shares of common stock outstanding with a beta of 1.54 and a market price of $51 a share. There are 10,000 shares of 7 percent preferred stock outstanding with a stated value of $100 per share and a market value of $83 a share. The 8 percent semiannual bonds have a face value of $1,000 and are selling at 96 percent of par. There are 5,000 bonds outstanding that mature in 13 years. The market risk premium is 7.5 percent, T-bills are yielding 3.6 percent, and the tax rate is 21 percent. What discount rate should the firm apply to a new project's cash flows if the project has the same risk as the company's typical project?
A) 9.59 percent
B) 8.72 percent
C) 9.17 percent
D) 8.28 percent
E) 9.30 percent
Answers: 2
Business, 21.06.2019 19:30
Consumer surplus is: the difference between the price of a product and what consumers were willing to pay for the product. the difference between the discounted price of a product and its retail price. the difference between the price paid by consumers and the price required of producers. the difference between the price of a product and consumers' valuation of the last unit of the product purchased.
Answers: 2
Business, 22.06.2019 19:00
The demand curve determines equilibrium price in a market. is a graphical representation of the relationship between price and quantity demanded. depicts the relationship between production costs and output. is a graphical representation of the relationship between price and quantity supplied.
Answers: 1
Business, 23.06.2019 07:50
One cost-of-living indicator available on the internet shows that a salary of $40,000 in santa barbara, california, is equivalent to $14,000 in wichita, kansas. this is primarily because of housing, which is much less expensive in wichita. what does this difference say about how the federal government calculates poverty?
Answers: 3
Deep Mines has 43,800 shares of common stock outstanding with a beta of 1.54 and a market price of $...
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