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Question - Assume Eternalife Company has the following capital structure, which it considers to be optimal: debt 30%, preferred stock 20%, and common stock 50%. The company's tax rate is 30%. Investors expect earnings and dividends to grow at a constant rate of 10% in the future. Eternalife Company paid a dividend of Br. 4.50 per share last year and its stock currently sells at a price of Br. 50 per share. Five-year treasury bonds yield 5%, the market risk premium is 4%, and Eternalife beta is 1.2. The following terms would apply to new security offerings.
Common Stock: New common equity will be raised only by retaining earnings.
Preferred stock: New preferred stock could be sold to the public at a price of Br.100 per share, with a dividend of Br.10, and floatation costs of Br.5 would be incurred.
Debt (bond): Debt could be sold at an interest rate of 10%.
Required -
Find the component costs of debt, preferred stock and common stock.
Determine the Weighted average cost of capital (WACC) of the company.
Prepare a schedule of cash collections for May 2016. Prepare the budgets for purchases of inventory in units and in dollars for months of April and May 2016.
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consider the task of scheduling five jobs abcd and e which needs 5423 and 3 hours respectively on machine 1 and 3144
Purchased a plant asset for $530,000; $162,000 in cash and $368,000 on loan. Make the statement of cash flows of Humorous Ltd for the year to 30 June 2019
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The publisher of a sports magazine plans to offer new subscribers one of three gifts: a sweatshirt with the logo of their favorite team, a coffee cup with the logo of their favorite team, or a pair of earrings also with the logo of their favorite ..
Investment income of $ 3,000 was received in cash The fund liabilities for interest on bonds in the amount of $ 50,000 and principal in the amount of $ 100,000 were recorded, and cash for the total amount was transferred to the fiscal agent.
What is the total consideration transferred by Allfoods in the acquisition of Baked Beans
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