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Name two types of debt financing

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1. Aegean Cruises issues only common stock and coupon bonds. It has a debt-equity ratio of 2. The cost of the equity is 14% while the pretax cost of debt is 6.5%. What is the WACC of Aegean if its tax rate is 35%?

2. Name two types of debt financing and also two sources to obtain debt.

3. Name two types of equity financing and also two sources to obtain equity.

4. Mcdonald's Corp pays a dividend of $5.16 for each share of its stocks in year 1 through year 5 and will pay 3% more each following year. If the required rate of return is 5%, what would be the value of one share of the Mcdonald's Corp stock?

Reference no: EM133068692

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