Order of capital cost from the least expensive

Assignment Help Financial Management
Reference no: EM131558799

Generally, for a corporation, the order of capital cost from the least expensive to the most expensive source is

a) a new common stock, retained earnings, preferred stock, long-term debt

b) long-term debt, preferred stock, retained earnings, new common stock

c) preferred stock, new common stocks, common stock, retained earnings

Reference no: EM131558799

Questions Cloud

Days sales outstanding on its cash conversion cycle : Winston Inc. is trying to determine the effect of its inventory turnover ratio and days sales outstanding on its cash conversion cycle.
Calculate the npv in mexican pesos : An American firm is evaluating an investment in Mexico. Calculate the NPV in U.S. dollars. Calculate the NPV in Mexican pesos.
Actively involved in day-to-day activities within business : They decide to operate the business as a general partnership since they both were actively involved in the day-to-day activities within the business.
What is the net impact on year one net income : HD Company sells goods to a Spanish customer at a price of 1 million euros. What is the net impact on Year 1 net income?
Order of capital cost from the least expensive : Generally, for a corporation, the order of capital cost from the least expensive to the most expensive source is
Using current exchange rates : Using current exchange rates, what is today’s value of the investor’s portfolio in U.S. dollars.
What is the risk premium on alberts bonds : If the 3-month T-bill yield is currently 0.45%, what is the risk premium on Albert's bonds?
Calculate the WACC of WTC : The total book value of WTC’s equity is $40 million and book value per share outstanding is $10. calculate the WACC of WTC.
Estimated cost of common equity using CAPM : What is the estimated cost of common equity using the CAPM?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the company unlevered cost of equity capital

Calculating WACC [LO1] Twice Shy Industries has a debt−equity ratio of 1.1. Its WACC is 8.2 percent, and its cost of debt is 6.4 percent. The corporate tax rate is 35 percent. What is the company’s cost of equity capital? What would the cost of equit..

  Estimate the enterprise value of heavy metal

Heavy Metal Corporation is expected to generate the following free cash flows over the next five? years: Estimate the enterprise value of Heavy Metal.

  What after tax amount of cash will canon receive from fuji

Canon Corporation expects to receive $3 million of dividend income from the shares of stock it holds in Fuji Enterprises.- What after-tax amount of cash will Canon receive from Fuji?

  Sinking fund which earns an annual effective rate

Copernicus borrows $L and repays the principal by making ten annual payments at the end of the year into a sinking fund which earns an annual effective rate of 8%. The interest earned on the sinking fund in the third year is $85.57. Determine L

  Consider IKEAs return policy

Consider IKEA’s return policy: "If you’ve changed your mind and are not entirely satisfied with your purchase, simply return the unused item within 45 days for an exchange or refund." IKEA’s return policy represents:

  What is the value of stock today

Twister Cheese Corporation will pay a dividend of $2.00, $3.25, $4.00, and $3.00 during the next four years. You expect the stock price at the end of year four equal to $54. If the discount rate is 12%, what is the value of stock today?

  The company achieve without having to raise funds externally

How large of a sales increase can the company achieve without having to raise funds externally?

  What is the projects discounted payback

Project K costs $55,000, its expected cash inflows are $13,000 per year for 8 years, and its WACC is 7%. What is the project's discounted payback?

  Should it produce to maximize its profit

A firm can produce 100 units per week. If its total cost function is C = 500 + 1500x dollars and its total revenue function is R = 1600x-x2 dollars, how many units, x, should it produce to maximize its profit? Find the maximum profit.

  What is the internal rate of return on this project

Quick Sale Real Estate Company is planning to invest in a new development. The cost of the project will be $23 million and is expected to generate cash flows of $14,000,000, $11,750,000, and $6,350,000 over the next three years. The company's cost of..

  Interest rate with quarterly compounding

Assume the payments are made at the beginning of each year. Assume a 5% interest rate with quarterly compounding.

  Assume market is in equilibrium with required return equal

YUM Corp does not pay any dividends because it is expanding rapidly and needs to retain all of its earnings. However, investors expect YUM Corp to begin paying dividends, with the 1st dividend of $1.25 coming 3 (three) years from today. The dividend ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd