1 calculating wacc crosby industries has a debt-equity

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1. Calculating WACC. Crosby Industries has a debt-equity ratio of 1.5. Its WACC is 9 percent, and its cost of debt is 6 percent. There is no corporate tax.

  1. What  is Crosby's cost of equity capital?
  1. What  would the cost of equity be if the debt-equity ratio were 2.0?

What if it were 0.5 and What if it were zero

3. Dividends and Stock Prices. Your portfolio is 180 shares of Sunny Morning, Inc. The stock currently sells for $88 per share. The company has announced a dividend of $1.90 per share with an ex-dividend date of April 19. Assuming no taxes, how much will your stocks be worth on April 19?  It is April 19, what is your total portfolio value?

Reference no: EM13380773

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