Firm that has both debt and equity in capital structure

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Reference no: EM131912745

1. Other things equal, which of the following will decrease the WACC of a firm that has both debt and equity in its capital structure?

An increase in the expected market return

An increase in the yield on preferred stock

An increase in the stock’s beta

An increase in the tax rate

2. What is the projected profitability of the urgent care center for the entire year if volume continues at its current level?

3. Construct an Income statement for the company ABC from the following information:

Cost of goods sold = $12,647

Depreciation = $1,069

Interest expense = $178

Sales Revenue = $27,121

Selling, general and administrative cost= $8,352

Taxable Income =$4,875

Taxes at 31.92% of Taxable income.

Reference no: EM131912745

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