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Alexandar Corporation has the following characteristics:
Debt 35%
Preferred Stock 5%
Common Stock 60%
Tax Rate 40%
Constant Growth Rate 10%
Current Stock Price per share 55
Last Year's Dividend per share 5
US Ten Year Treasury Bond Yield 2%
Market Risk Premium 8%
Beta 1.5
New Preferred Stock Price 100
Flotation Costs for Preferred 10
Dividend per share (preferred) 8
Debt Yield to Maturity 7%
New Common Equity (Use CAPM)
What are the components of debt, preferred stock and common stock?
What is the WACC?
What is the present value of the following future amount? $495,461 to be received 15 years from now, discounted back to the present at 6.36 percent, compounded daily.
How high does the company's initial cash position have to be for the company to have a less than 5% chance of a negative cash position by the end of 1 year?
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