Explain how to create common sized balance sheet

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Reference no: EM131927238

1. Explain how to create a common sized balance sheet and a common sized income statement.

2. Explain why the WACC uses the after-tax cost of debt instead of pre-tax.

3. Double A Corp. is going to offer to its members preferred stock with a par value of $200 and an annual dividend rate of 7%. If a member wants a 8% return, what price should he or she be willing to pay?

Reference no: EM131927238

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