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!
You have following information about the company R.S. Green: The company has 250,000 shares of common stock outstanding at a market price of $28 a share. Next year’s annual dividend is expected to be $1.55 a share. The dividend growth rate is 2%. The company also has 7,500 bonds outstanding with a face value of $1000 per bond. The bonds carry a 7% coupon, pay interest semiannually, and mature in 7.5 years. The bonds are selling at 98% of face value. The corporate tax rate for the company is 34 percent. 1). What is WACC for the company? 2). The company want to raise 5 million in capital, but still maintain its current capital structure. Given that the flotation cost for common stock is 5%, and the floatation cost for bond is 3%, what is the true amount of capital that the company has to raise? 3). The company will invest newly raised capital in a project, which will generate annual cash inflows of 1.2 million for the next 5 years. What are the NPVs of the project before and after adjusted for floatation cost?
You are 22 year old today. You want to retire at age 55 and have $3 million at that time. Assume you can earm an average annual rate of return of 8.8 percent.
Companies with relatively high assets to sales ratios require a relatively large amount of new assets for any given increase in sales: hence they have a greater need for external financing. there are currently no alternatives for these types of firms..
The Elkmont Corporation needs to raise $52.4 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. How many shares need to be sold?
John has budgeted to pay $50 each month on his credit card which has a $2,598 balance and has an annual finance rate of 19.9%. If John wants to pay the credit card off in 5 years, by how much would he have to increase his monthly payment?
Landmark Coal operates a mine. During July, the company obtained 500 tons of ore, which yielded 250 pounds of gold and 62,500 pounds of copper. The joint cost related to the operation was $500,000. Gold sells for $325 per ounce and copper sells for $..
You received a dividend of $6.68 this morning and are attempting to decide if you should hold onto this stock. You expect this stock to grow at 14% for 3 years. After that, you think they will grow at 13%. Given the level of risk, you need a return o..
Why should a firm invest its idle cash? How to invest the idle cash and what's credit management? What's the optimal credit policy?
Solinux, Inc., is a young start-up company and will not pay dividends on its stock for the next 8 years, since the firm needs to slow back its earnings to fuel growth. The company will then pay a $2.22 per share dividend in year 9 and will increase t..
The expected return for the general market is 12.8 percent, and the risk premium in the market is 9.3 percent. Tasaco, LBi\1, and Exxos h,ve bet,s of 0.864, 0.693, and 0.575, respectively. What are the corresponding required rates of return for the ..
Capital projects are a critical part of governmental activities at the federal, state and local level. The steps in the capital budgeting process are significant part of selecting projects from many competing potential projects in a world of limited ..
Differences between process explanations and instructions. Describe the differences between the two types of documents.
A firm is expected to pay $2 dividend per share in year 1 (D1=$2) and the dividend is expected to grow at a constant rate of 5%. If the firm's stock price is $28.64 based on the constant growth model, what is the required rate of return on the stock?
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