Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
PetSmart Inc. is a publicly traded company involved in selling pet food and accessories. The firm has 15 million shares outstanding, trading at $ 10 a share; it has $ 50 million in 10-year bonds outstanding and interest expenses on the debt amounted to $ 2 million. The firm currently is rated A with a cost of debt of 5% and has a levered beta of 1.56. The risk-free rate is 4.5% and the market risk premium is 4%. The corporate marginal tax rate is 40%. a. Estimate the current cost of capital for PetSmart. b. PetSmart announces that it will be borrowing $ 50 million and buying back stock at $10.75 a share. This will lower the rating to BB, with a pre-tax cost of debt of 7%. Assuming that all of the existing debt gets refinanced at this new rate, estimate the value per share after this transaction. (You can assume a growth rate of 3% in perpetuity.)
equity swap- explain how an equity swap could allow marathon insurance company to capitalize on expectations of a
A firm that owns the stock of another corporation does not have to pay taxes on the entire amount of dividends received. In general, only 30 percent of the dividends received by one corporation from another are taxable
from the following data what is the ebitda margin?revenue2550operating costs1400general and administrative
Earnings per share of common stock will immediately increase as a result of, An increase in the market price of a company's common stock will immediately affect its:
what is the practical implication of brealey and myerss second law? the law reads the proportion of proposed projects
Which of the following is true of arguments for dividend relevance? Investors are generally risk averse and attach less risk to current dividends than future dividends or capital gains. A firm's value is determined solely by the earning power and ris..
What is the yield to call for a 10 year bond that is callable in 2 years, has a 5.1% coupon rate and a yield to maturity of 6.5%? The bond's call premium is one year's interest. What is the yield to maturity for a zero coupon bond that matures in ..
The price of Great American Landscaping Inc. is now $85. The company pays no dividends. Toby Chysler expects the price four years from now to be $125 a share. Should Toby buy Great American Landscaping if he wants a 15 percent rate of return? Exp..
Little Books Corporation recently reported $3 million dollars of net income. Its EBIT was 6 million dollars, and its tax rate was 40 percent. Determine its interest expense?
The amount is to be repaid in installments of $13,200 every year starting next year. How much time will it take to repay the amount if the appropriate annual rate is 7.8%?
the financial statements and industry norms are shown below for pamplin inc.given the belowa. how liquid is the firm?b.
For the year ended March 31, 2011, the company had revenues of $856,870, general and administrative expenses of $394,279, depreciation expenses of $131,455, leasing expenses of $108,195, and interest expenses equal to $78,122. If the company's tax..
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd