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!
Cantona Industries has a target captial structure consisting of 40% debt, 5% preferred stock, and 55% common equity. The before-tax YTM on Cantona's long-term bonds is 9.5%, its cost of preferred stock is 8%, and its cost of retained earning is 12.5%. IF the firm's tax rate is 40%, what is Cantona's WACC if it doesn't have to issue new common stock?
Cantona Industries undertakes a variety of projects with different levels of risk. Cantona adds 2 percentage points to its WACC for high-risk projects and subtracts 2 percentage points from its WACC for low-risk projects. In other words, the cost of capital for a high-risk project equals WACC + 2%, while a low-risk project uses a cost of capital equal to WACC - 2%. WACC remains the same for average-risk projects.
Cantona's managment is considering the following lost of projects, and each project's risk is indicated in the table below. Indicate which projects Cantona Industries should accept:
Project Expected Rate of Return Risk Accept
A 10.7% High Y/N
B 10.4% Average Y/N
C 12.7% High Y/N
D 8.5% Low Y/N
E 8.6% Average Y/N
F 6.7% Low Y/N
G 9.1% Low Y/N
H 10.9% Average Y/N
A loan is offered with monthly payments and a 7.50 percent APR. What's the loan's effective annual rate (EAR)
Days sales in inventory will decline from 100 to 45 days and sales will be offset by most of the additional costs of accounts payable associated with increased purchases.
what is the expected return on a stock with a beta of 1.50 if the riskless rate is 5% and the expected market return is 9%
Mary Watson is 24 years old and single, lives in an apartment, and has no dependents. Last year she earned $45,000 as a sales assistant for Focused Business Analytics: $3,910 of her wages was withheld for federal income taxes.
If Campbell were to purchas a new wearhouse for $1.4 million and finance it entirely with long-term debt, what would be the firm's new debt ratio
The company's income tax rate is 40% on all items of income or loss. These revenue and expense items appear in the company's income statement every year.
ashley has a major medical health insurance policy with a $2 million lifetime limit. The policy has a $500 calendar year deductible and a 20 percent coinsurance clause.
Jack asked Jill to marry him, and she has accepted under one condition: Jack must buy her a new $330,000 Rolls-Royce Phantom. Jack currently has $50,680 that he may invest.
Beginning three months from now, you want to be able to withdraw $2,100 each quarter from your bank account to cover college expenses over the next four years.
De'Andre purchased one of XXXL Shirt Company's bonds last year when the market interest rate on similar-risk bonds was 6 percent. When he purchased the bond, it had 7 years remaining until maturity.
what differentiates the portfolios of a money market mutual fund, a commercial bank, a savings and loan association, and a life insurance company
Pierce Furnishings generated $2 million in sales during 2011, and its year-end total assets were $1.1 million. Also, at year-end 2011, current liabilities were $500,000, consisting of $200,000 of notes payable
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