The us treasury bill is yielding 28 percent and the return

Reference no: EM13483870 , Length: 5

Phillips Equipment has 80,000 bonds outstanding that are selling at par. Bonds with similar characteristics are yielding 6.75 percent. The company also has 750,000 shares of 7 percent preferred stock and 2.5 million shares of common stock outstanding. The preferred stock sells for $53 a share. The common stock has a beta of 1.34 and sells for $42 a share. The U.S. Treasury bill is yielding 2.8 percent and the return on the market is 11.2 percent. The corporate tax rate is 38 percent. What is the firm's weighted average cost of capital?

Reference no: EM13483870

Questions Cloud

Prepare a monthly flexible budget for the product showing : office plus sells its main product ergonomic mouse pads for 12 each. its variable cost is 5.20 per pad. fixed costs

Create a spreadsheet to compute the npv and payback period : create a spreadsheet to compute the npv and payback period to assist with a purchase decision. use to results to answer

Included in the cost of factory supplies are obsolete items : maddox specialty company a division of lost world inc. manufactures three models of gear shift components for bicycles

Johnson inc is a manufacturer of lead crystal glasses : johnson inc. is a manufacturer of lead crystal glasses. the standard materials quantity is 0.8 pound per glass at a

The us treasury bill is yielding 28 percent and the return : phillips equipment has 80000 bonds outstanding that are selling at par. bonds with similar characteristics are

What would be the cost of retained earnings equity for : what would be the cost of retained earnings equity for tangshan mining if the expected return on u.s. treasury bills

What would be the cost of new common stock equity for : what would be the cost of new common stock equity for tangshan mining if the firm just paid a dividend of 4.25 the

Moje inc manufactures travel locks prepare a flexible : moje inc. manufactures travel locks. the budgeted selling price is 19 per lock the variable cost is 8 per lock and

The approximate after-tax cost of debt for a 20-year 7 : the approximate after-tax cost of debt for a 20-year 7 percent 1000 par value bond selling at 960 assume a marginal

User Account

All Pages