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Coogly Company is attempting to identify its weighted average cost of capital for the coming year and has hired you to answer some questions they have about the process. They have asked you to present this information in a PowerPoint presentation to the company’s management team. The company would like for you to keep your presentation to approximately 10 slides and use the notes section in PowerPoint to clarify your point. Your presentation should address the following questions and offer a final recommendation to Coogly. Make sure you support your answers and clearly explain the advantages and disadvantages of utilizing the weighted average cost of capital methodology. Include at least one graph or chart in your presentation.Company InformationThe capital structure for the firm will be maintained and is now 10% preferred stock, 30% debt, and 60% new common stock. No retained earnings are available. The marginal tax rate for the firm is 40%.A. Coogly has outstanding preferred stock That pays a dividend of $4 per share and sells for $82 per share, with a floatation cost of $6 per share. What is the component cost for Coogly's preferred stock? What are the advantages and disadvantages of using preferred stock in the capital structure?B. If the company issues new common stock, it will sell for $50 per share with a floatation cost of $9 per share. The last dividend paid was $3.80 and this dividend is expected to grow at a rate of 7% for the foreseeable future. What is the cost of new equity to the firm? What are the advantages and disadvantages of issuing new equity in the capital structure?C. The company will use new bonds for any capital project, according to the capital structure. These bonds will have a market and par value of $1000, with a coupon rate of 6% and a floatation cost of 7%. The bonds will mature in 20 years and no other debt will be used for any new investments. What is the cost of new debt? What are the advantages and disadvantages of issuing new debt in the capital structure?D. Given the component costs identified above and the capital structure for the firm, what is the weighted average cost of capital for Coogly? What are the advantages and disadvantages of using this method in the capital budgeting process?
john wilson is a 42-year-old computer programmer husband and father of four. he wants to use the capital retention
Investors require a return of 11 percent on the company's stock. What is the current stock price? What will the stock price be in three years? What will the stock price be in 15 years?
An investment project has the cash flow stream of $-3250, $80, $200, $75, and $90. The cost of capital is 12%. What is the discounted payback period?
Eastern Telecom is planning to decide whether to increase its cash dividend immediately or use funds to rise its future growth rate. It will use the dividend valuation model originally presented in purposes of analysis.
Bradley uses FIFO inventory accounting. Assuming that Bradley sold 13,000 units durning the last six months of the year at $ 16 each, what is its gross profit? What is the value of ending inventory?
Jess sold a piece of equipment she used in her business. The equipment cost Jess $51,500 several years ago and had accumulated depreciation taken in the amount of $20,300. Jess sold the equipment for $35,000.
Determine expected dividend yield and Capital Gain - Find the expected dividend yield and capital gain yield once Fast Start Inc.'s period of supernormal growth ends.
List and briefly explain the arguments against including international equities in an investment portfolio.
The required return on this stock is 10 percent, and the stock currently sells for $98 per share. What is the projected dividend for the coming year?
ABC Inc. borrows 100m JPY when JPY spot rate is JPY120/$. Calculate the dollar cost of ABC's JPY loan.
Filkins Farm Equipment needs to raise $4.5 million for expansion. and it Expects that five year zero coupon bonds can be sold at a price of $567.44 for each $1.000 bond.
Mark Anderson's Legal Aid has the following estimated revenue. Feb $16,400. Mar $14,800. Apr $17,900. May $17,500. Assume each month has 30 days and the accounts receivable period is 60 days. How much does the firm expect to collect in May?
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