Reference no: EM131356088
1. Corporate income taxes have the effect of
increasing the after-tax cost of debt for a firm.
decreasing the after-tax cost of debt for a firm.
decreasing the after-tax cost of equity for a firm.
increasing the after-tax cost of equity for a firm.
2. According to the Pecking Order Hypothesis, what is the sequence of sources of funds that a firm will typically access when obtaining capital for additional investments:
A) Debt issues, equity issue, retained earnings
B) Debt issues, retained earnings, equity use
C) equity issue, debt issue, retained earnings
D) It is irrelavent since WACC is independent of capital structure
E) Retained earnings, debt issue, and equity issue
Symantec does not currently pay dividend
: Symantec does not currently pay a dividend, however, in 4 years you expect they will pay their first dividend and it will be $2 per share. The dividend is expected to grow at a rate of 4% and investors’ required rate of return for Symantec stock is 8..
|
Which action of yours will keep career unstained in long run
: After 6 years from graduation, you became a general manager, and now you have to invest your limited fund into the most profitable internal projects in your hotel. You have only enough money to support one project. Which action of yours will keep you..
|
Portfolio of stocks that have achieved the returns
: You own the following portfolio of stocks that have achieved the following returns. [Stock A weight=25%, expected return=8%], [Stock B weight=65%, expected return=4%], [Stock C weight=10%, expected return=5%] The weighted average return is
|
Calculate the firm inventory turnover
: Earth’s Best Company has sales of $200,000, Cost of Goods Sold of 100,000, a net income of $15,000, and the following balance sheet: Calculate the firm’s Inventory Turnover.
|
Corporate income taxes have effect-pecking order hypothesis
: Corporate income taxes have the effect of. According to the Pecking Order Hypothesis, what is the sequence of sources of funds that a firm will typically access when obtaining capital for additional investments:
|
Micro spinoffs also has preferred stock outstanding
: Micro Spinoffs, Inc., issued 20-year debt a year ago at par value with a coupon rate of 8%, paid annually. Today, the debt is selling at $1,100. The firm’s tax bracket is 20%. Micro Spinoffs also has preferred stock outstanding. The stock pays a divi..
|
After-tax cost of debt financing
: Bellamee Company has bonds outstanding with five years to maturity and a face value of $5,299. The bonds are currently priced at their face value. If the bonds have a coupon rate of 25 percent, then what is Bellamee's after-tax cost of debt financing..
|
What would be the second year future value
: A deposit of $720 earns interest rates of 10.2 percent in the first year and 7.2 percent in the second year. What would be the second year future value?
|
Annual interest rate due to your age and credit score
: You are interested in buying a brand new Lexus IS-F, which costs $70,000 with full of cool options. A bank will lend you 100% of the purchase price for 4 years. As usual with an auto loan, you have to make equal monthly payments for 4 years (=48 mont..
|