Business, 24.08.2021 23:50 zmirandalove100

Dragon Company’s assets are $750 million, financed through bank loans, bonds, preferred stocks, and common stocks. The amounts are as follows: Bank loans: $100 million borrowed at 5%.
Bonds: $280 million, paying an 8% coupon with semi-annual payments, and maturity of 10 years. Dragon sold its $1,000 par-value bonds for $970.
Preferred Stocks: $120 million, paying $15 dividends per share. Dragon sold its preferred shares for $220.
Common Stocks: $250 million, beta is 3.20, the risk-free rate is 5%, and the market rate is 10%.
If Dragon is subject to 30% tax rate, what is the WACC for Dragon? Ignore the flotation costs.

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 11:00

While on vacation in las vegas jennifer, who is from utah, wins a progressive jackpot playing cards worth $15,875 at the casino royale. what implication does she encounter when she goes to collect her prize?

Answers: 1

Answer

Business, 23.06.2019 09:00

The average cost of one year at a private college in 2012-2013 is $43,289. the average grant aid received by a student at a private college in 2012-2013 is $15,680.what is the average student contribution for one year at a private college in 2012-2013?

Answers: 2

Answer

Business, 23.06.2019 09:50

Leading guitar string producer wound up inc. has enjoyed a competitive advantage based on its proprietary coating that gives its strings a clearer sound and longer lifespan than uncoated strings. one of wound up's competitors, however, has recently developed a similar coating using less expensive ingredients, which allows it to charge a lower price than wound up for similar-quality strings. wound up's competitive advantage is in danger due to a. a lack of perceived value b. a lack of organization c. direct imitation and substitution d. resource immobility

Answers: 3

Answer

Business, 23.06.2019 10:30

This pie chart shows a sample weekly budget. in this budget, how much money is going toward optional expenses? $70 $75 $10 $35

Answers: 1

Answer

You know the right answer?

Dragon Company’s assets are $750 million, financed through bank loans, bonds, preferred stocks, and...

Questions