(weighted average cost of capital) the capital structure

Assignment Help Finance Basics
Reference no: EM13754407

(Weighted average cost of capital) the capital structure for the Carion Corporation is provided here. The company plans to maintain its debt structure in the future. If the firm has an after-tax cost of debit of 6.3 percent, a cost of preferred stock of 10.4 percent, and a cost of common stock of 17.4 percent, what is the firm's weighted average cost of capital?
CAPITAL STRUCTURE ($000)
Bonds $1,142
Preferred stock 276
Common stock 3,695 
$5,113 

Reference no: EM13754407

Questions Cloud

L ast quarter the semiannual rate : Calculate the duration of the following security:  1.25-year floating coupon paying float + 50 bps semiannually.  You know that last quarter the semiannual rate was 6.4%.
What is the appropriate total budget for the department : At the beginning of the period, the Cutting Department budgeted direct labor of $155,000, direct material of $165,000 and fixed factory overhead of $15,000 for 9,000 hours of production. The department actually completed 10,000 hours of production. W..
Units of production-flexible budget would show what : Scott Manufacturing Co.'s static budget at 10,000 units of production includes $40,000 for direct labor and $4,000 for electric power. Total fixed costs are $23,000. At 12,000 units of production, a flexible budget would show what?
What is the price of the security : A Treasury dealer quotes the following 182-day bill at a 3.956% discount.  What is the price of the security?
(weighted average cost of capital) the capital structure : (Weighted average cost of capital) the capital structure for the Carion Corporation is provided here. The company plans to maintain its debt structure in the future. If the firm has an after-tax cost of debit of 6.3 percent, a cost of preferred stock..
Income before income taxes and extraordinary items : An income statement shows "income before income taxes and extraordinary items" in the amount of $3,000,000. The income taxes payable for the year are $1,500,000, including $260,000 that is applicable to an extraordinary gain. Thus, what is the "incom..
What must the coupon rate be on the bonds : 1.Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 15 years to maturity, and a coupon..
General fund receives electric bill for entire government : Which classification of expenditures would be the following scenario? The general fund receives an electric bill for the entire government. The General fund paid the bill.
The share register reveals that the firm : The prospectus of a new firm stated that the firm will have a 50% dividend payout policy. After the float, the share register reveals that the firm has attracted a mixed class of shareholders with different tax brackets and the largest shareholder gr..

Reviews

Write a Review

Finance Basics Questions & Answers

  What is an internal process to design jobs

What is an internal process to design jobs that properly describe the duties and responsabilities of the position and comply with the american disabilities act.

  What would be the after-tax amount

Michelle Williams is in the 30% personal tax bracket. She is considering investing in HCA (taxable) bonds that carry a 9% interest rate. What is her after tax yield (interest rate) on the bonds?

  Describe some of the short-term investment vehicles

Describe some of the short-term investment vehicles that you use to manage your cash resources. Why did you elect these vehicles over the alternatives? What are their primary advantages and disadvantages?

  Accounting reporting criteria comparision

Prepare a 700 word paper, in which you compare and contrast the accounting reporting criteria (regulatory environment, issues with foreign currency, differences in GAAP, etc.) of a U.S. company with a foreign company.

  Calculate the after tax weighted average cost of capital

Estimate Nutrex's expected return on common equity using the securty market line. C. Calculate the after tax weighted average cost of capital.

  Assume a retention ratio of 045 and a historical return on

abc co. has the following dividend payment historyyearnbspnbspnbspnbspnbspnbspnbsp dividend2003nbspnbspnbspnbspnbspnbsp

  What is the dupont equation

What is the DuPont equation, and how does it capture the nature of expense control, efficiency of asset management, and financial leverage (or debt) of a firm?

  Make the journal entries to record the declaration

The new shares were distributed on December 10, 2013. Make the journal entries to record the declaration and distribution of the stock dividend.

  Interest rate swaps and equity swaps

Discuss the standard features of equity swap contract. What are the differences between equity swap and an interest rate swap.

  What is the percentage up movement

Use a two-step tree to value a six-month European call option and a six-month European put option. In both cases the strike price is $150.

  In a nationwide survey suppose 100 boys and 50 girls are

for boys the average number of absences in the first grade is 15 with a standard deviation of 7 for girls the average

  Compute the value of stock

Brushy Mountain Mining Corporation's ore reserves are being depleted, so its sales are falling. Also, its pit is getting deeper each year, so its costs are increasing.

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