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!
GS Inc. has been financed using both debt and equity. The company has outstanding a 20-year, $1,000,000 par value bond that was issued in 2005 and that carries a 10% coupon rate, and tomorrow, a 20-year bond with a par value of $1,000,000 carrying a coupon rate of 8% will be issued. GS has preferred stock outstanding (25,000 shares, market price = $75) with a dividend yield of 5.5%. GS has issued 100,000 shares of common stock, and its most recent market price was $32.50 per share.
Presently, the T-bill rate is 4%, and analysts have estimated that the market will return its historical average, which is 12%. The most recent S&P report on GS Inc. listed a beta of .95. The company’s tax rate is 40%, and the company uses wacc as its discount rate for projects. What is the WACC for GS Inc.?
Project K costs $55,000, its expected cash inflows are $13,000 per year for 8 years, and its WACC is 12%. What is the project's payback? Round your answer to two decimal places.
Assume the Marginal Tax Rate is 34%. If a corporation received $1,000,000 in interest income from corporate bonds it holds in another corporation, how much is subject to tax? $___________, what is the tax due? $_________, how much do they clear after..
A company spends $1,000,000 on equipment with a 10 year service life to start a manufacturing facility. The expenses are $100,000 per year, and the revenue from selling the products are $450,000 per year. Determine the non-discounted payback period. ..
Which one of the following defines the terms of sale?
You have chosen biology as your college major because you would like to be a medical doctor. However, you find that the probability of being accepted into medical school is about 10 percent. Without considering the additional educational years or the..
Prepare an amortization schedule for a five-year loan of $67,000. The interest rate is 9 percent per year, and the loan calls for equal annual payments. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. ..
Figure 3.6 gives a decision tree for Mr. Smart’s situation. Mr. Smart is risk-averse. The amount of utility he derives from a payoff is Utility = 2In (payoff). Because of a planned major purchase, Mr. Smart intends to sell his investment one year lat..
Given the function above (i.e., PB = $140 – 4 AB), If capacity at the team's stadium is 25,000 seats, should the team owner fill the stands with business buyers? Why or why not?
Obtain the closing price, the change in price from the previous day, and the beta and calculate the return on holding the stock for a day.
A stock is expected to pay a dividend of $0.75 the end of the year (that is, D1 = $0.75), and it should continue to grow at a constant rate of 5% a year. If its required return is 12%, what is the stock's expected price 1 year from today?
Two Companies, Oplev and Finlev, Each have sales of 100,000 unites at a $2.00 cost/unit. Oplev has Variable Cost of $1.25/unit and a Fixed Cost of $60,000.. Finley has Variable cost of $1.75/unit and a fixed cost of $10,000. What is the Degree of Ope..
An insurance company has made you the following retirement offer. If you pay them $100,000 now, you will receive payments of $8000 a year for 10 years. After this they will pay you $9000 a year in perpetuity (i.e. for ever). What interest rate are yo..
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