Reference no: EM13746525
1. A company issues 15-year, $1,000 par-value bonds,with a coupon rate of 5%. The bonds are sold for $619.70. The tax rate is 30%. Compute the cost of debt before taxes and after taxes.
2. Suppose a company issues common stock to thepublic for $25 a share. The expected dividend is $2.50 per share and the growthin dividends is 8%. If the flotation cost is 10% of the issue proceeds, computethe cost of external equity, re.
Problem 3:
Calculate the cost of preferred stock (rPS) withthe given information:
Par Value = $200
Current Price = $208
Flotation Cost = $16
Annual Dividend = 12% of Par
4. A firm expects to earn $3.50 per share during the current year, its expected dividend payout ratio is 65%, its expected constant dividend growth rate is 6.0%, and its common stock currently sells for $32.50 per share. New stock can be sold to the public at the current price, but a flotation cost of 5% would be incurred. What would be the cost of equity from new common stock (re)?
5. Suppose you are informed that a company expects to pay a $2.50 dividend at year end (D1 = $2.50), the dividend is expected to grow at a constant rate of 5.50% a year, and the common stock currently sells for $52.50 a share. The before-tax cost of debt is 7.50%, and the tax rate is 40%. The target capital structure consists of 45% debt and 55% common equity. What is the company's WACC if all the equity used is from retained earnings?
|
Obtain the closing price
: Impact of Beta on Portfolio: Obtain the closing price, the change in price from the previous day, and the beta
|
|
Define the definition of the strategy
: Choose Coca-Cola Co and another organization of your choice. For each organization, choose one of the eleven business strategies and provide both the definition of the strategy and an example of how it is applied in the organization
|
|
What are impacts of victories on army you are imbedded with
: What are the impacts of the victories and failures on the soldiers/army (countries) you are imbedded with? Include the dates of your dispatches.
|
|
Strategic turning points that caused change in the industry
: Describe the strategic turning points that caused change in the industry. Identify and describe how one company within the industry successfully reacted to the need for change
|
|
Compute the cost of debt before taxes and after taxes
: A company issues 15-year, $1,000 par-value bonds,with a coupon rate of 5%. The bonds are sold for $619.70. The tax rate is 30%. Compute the cost of debt before taxes and after taxes.
|
|
What is the goal or purpose behind your proposed research
: What is the goal or purpose behind your proposed research. What type of interview structure would you use. Why
|
|
Why multiculturalism is a controversial subject
: Discussed the reasons why multiculturalism is a controversial subject. Gave a complete explanation as to how structural functionalism, social conflict, and symbolic interaction can be used to understand multiculturalism
|
|
Why are these the essential components of staff quality
: What constitutes quality in health care organizations for employees and Why are these the essential components of staff quality
|
|
What kind of civil penalties should the sec impose on cfo
: A Fortune 500 CFO admits to having deliberately treated $4 billion in operating expenses as assets, thereby, allowing the corporation to show profits instead of losses. What kind of civil penalties should the SEC impose on the CFO
|