User Account

All Pages

Pottery shed capital structure and costs of capital

Assignment Help Business Management
Reference no: EM131770946

The following information pertains to The Pottery Shed's capital structure and costs of capital. The tax rate is 40 percent. Find WACC.

  • Debt: There are 50,900 annual bonds outstanding with a coupon rate of 12 percent, 30 years to maturity, and $1,000 par value.Each bond is currently selling for 102.6 percent of par.
  • Common stock: There are currently 11,000,000 shares of stock outstanding.Each share sells for $31.68.The Pottery Shed consistently pays dividends, and has a constant dividend growth rate of 6 percent.The most recent dividend paid was $2 per share.
  • Preferred stock: The firm has 75,000 preferred shares outstanding.Each 10.5 percent preferred share has a par value of $100 and sells for $107.
  • Market: The risk-free rate is 2.8 percent, and the market risk premium is 6.5 percent.

Reference no: EM131770946

Questions Cloud

Conduct research on your topic using the walden library : Application Assignment: Leadership Concept Analysis Group Paper- Conduct research on your topic using the Walden Library and other credible sources.
Prepare journal entries to record adjustments : On the basis of the above information, prepare journal entries to record whatever adjustments are necessary to bring the accounts up to date on December 31.
Identify and discuss at least one financial metric : MRKT 310 :Identify at least three types of information your company should use in a comprehensive marketing information system for decision making purposes.
The beta of emerson electric : The beta of Emerson Electric is 1.28. If the cost of equity for Emerson is 10.5% and the return on the market is 8.96%, what is the risk-free rate?
Pottery shed capital structure and costs of capital : The following information pertains to The Pottery Shed's capital structure and costs of capital. The tax rate is 40 percent. Find WACC.
Identify the pathophysiology of the disorders presented : Identify the pathophysiology of the disorders presented in each of the three scenarios, including their associated alterations.
Completing the irac evaluation : Do a complete IRAC evaluation as to whether Paula is right about the contract. Does she have legal rights against Dave based upon the promises Dave made to her.
Years and then start your own business : After graduation, you plan to work for Ithaca Corp for 10 years and then start your own business. You expect to save $5,000 a year for the first.
How much is your payoff if the spot price : If you pay a premium of $27.5 today per option and the interest rate per year is 3.4%, how much is your payoff if the spot price of gold in one year is $1,650?

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

Free Assignment Quote

Assured A++ Grade

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd