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!
King’s Mfg. Inc. has 12,000 bonds outstanding that have a 6% coupon rate. The bonds are selling at 98% of face value, pay interest semi-annually, and mature in 28 years. There are 400,000 shares of 9% $100 preferred stock outstanding with a current market price of $83 a share. In addition, there are 1.40 million shares of common stock outstanding with a market price of $54 a share and a beta of 1.2. The common stock paid a total of $1.80 in dividends last year and expects to increase those dividends by 4% annually. The firm's marginal tax rate is 34%. The overall stock market is yielding 12% and the Treasury bill rate is 4.0%.a. What is the cost of equity based on the dividend growth model?b. What is the cost of equity based on the security market line?c. What is the cost of financing using preferred stock?d. What is the pre-tax cost of debt financing?e. What weight should be given to equity in the weighted average cost of capital computation?f. What would be the cost of new financing (including the impact of each of 28-year bonds, preferred shares and common shares), assuming that flotation costs would be 5% of the proceeds of the issue?g. If net income in the next year is expected to be $8,000,000, what would be the common equity breakpoint for new financing, assuming the current capital structure is considered optimal?
Three years ago the U. S. dollar equivalent of a foreign currency was $1.2167. Today, the U. S. dollar equivalent of a foreign currency is $1.3310. Determine the percentage change of the euro between these two dates.
Holiday House has sales of $648,000, a profit margin of 6.1 percent, and a capital intensity ratio of 0.84. What is the total asset turnover rate?
The project is estimated to generate 2,640,000 in annual sales, with costs of 1,056,000. The tax rate is 30 % and the required return for the project is 15%. What is NPV, IRR, Payback, and Profitability Index for project ?
A proposed new investment has projected sales of $836,000. Variable costs are 56 percent of sales, and fixed costs are $187,540; depreciation is $96,500. Assume a tax rate of 40 percent.
1. What are the sources of cash inflows to a firm over any time frame?2. What are the sources of cash outflows from a firm over any time frame?3. Describe the three motives or reasons for holding cash.
calculating cost of equity cost of retained earnings based on discounted cash flow c a p m and bond cost plus premium
The corporate tax rate is 30 percent. What is the weighted average flotation cost?
They stated that the I-beams had been added for reinforcement. The Silvas bought the house for $60,000. Soon afterward, they began to have problems with leaks, mildew, and dampness. Are the Silvas entitled to any money damages? Why or why not?
What is the duration of a two-year bond that pays an annual coupon of 10 percent and has a current yield to maturity of 12 percent? Use $1,000 as the face value.
Dominos Corp. issued a 16-year, 6 percentsemiannual bond 2 years ago. The bond currently sells for 91percent of its face value. The company's tax rate is 35 percent,
March, $100. 50% of sales are usually paid for in the month that they take place, 30% in the following month, and the final 20% in the next month. Receivables at the end of December were $100 million. What are the forecasted collections on account..
Carnegie Mellon and Produce Co. has $197,000,000 in stockholders' equity. Forty million dollars is listed as common stock and the balance is in retained earnings. The firm has $265,000,000 in total assets and 2 percent of this value is in cash.
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