Reference no: EM131125995
1. LL Incorporated's currently outstanding 11% coupon bonds have a yield to maturity of 8%. LL believes it could issue at par new bonds that would provide a similar yield to maturity. If its marginal tax rate is 35%, what is LL's after-tax cost of debt?
2. Burnwood Tech plans to issue some $60 par preferred stock with a 6% dividend.</p><p>The stock is selling on the market for $70.00, and Burnwood must pay flotation costs of 5% of the market price. What is the cost of the preferred stock?
3. Summerdahl Resorts' common stock is currently trading at $36 a share. The stock is expected to pay a dividend of $3.00 a share at the end of the year (D1 _ $3.00), and the dividend is expected to grow at a constant rate of 5% a year. What is the cost of common equity?
4. Booher Book Stores has a beta of 0.8. The yield on a 3-month T-bill is 4% and the yield on a 10-year T-bond is 6%. The market risk premium is 5.5%, but the stock market return in the previous years was 15%. What is the estimated cost of common equity using the CAPM?
5. Shi Importers' balance sheet shows $300 million in debt, $50 million in preferred stock, and $250 million in total common equity. Shi faces a 40% tax rate and the following data: rd _ 6%, rps _ 5.8%, and rs _ 12%. If Shi has a target capital structure of 30% debt, 5% preferred stock, and 65% common stock, what is Shi's WACC?
6. Spencer Supplies' stock is currently selling for $60 a share. The firm is expected to earn $5.40 per share this year and to pay a year-end dividend of $3.60.</p><p>a. If investors require a 9% return, what rate of growth must be expected for Spencer?</p><p>b. If Spencer reinvests earnings in projects with average returns equal to the stock's expected rate of return, what will be next year's EPS?
|
How would you go about doing this
: It is 1986, and Boston Beer is beginning its growth after hiring Pittsburgh Brewery to produce its beer. Jim Koch has charged you with coordinating the efforts at Pittsburgh Brewery, paying particular attention to assuring that your quality standards..
|
|
Individual data items collected part of earned value table
: What are some of the individual data items collected as part of the earned value table? What does the information tell us, and in what situations would we want to track the values?
|
|
Are social sciences teachers and natural sciences teachers
: In "The Practice of Social Research," Babbie (2013) suggest the following research question as a simple example: Are social sciences teachers, natural sciences teachers, or arts teachers more beloved among students on a college campus?
|
|
About the importance of database design
: We've spent many weeks talking about the importance of database design. The design is the foundation for our overall goals of high data integrity, low data anamolies and low data redundancy. However, what is it all worth if the data is not secure?
|
|
What is lls after tax cost of debt
: 1. LL Incorporated's currently outstanding 11% coupon bonds have a yield to maturity of 8%. LL believes it could issue at par new bonds that would provide a similar yield to maturity. If its marginal tax rate is 35%, what is LL's after-tax cost of de..
|
|
The two major functions of serum albumin
: Serum albumin is the major protein (40g/L) present in blood plasma.- Name the two major functions of serum albumin.
|
|
Why do you agree or disagree with the argument presented
: Please find an article, which you find interesting and write a critique of the article of no more the one page. Provide a link to the article and cite your work in proper APA format. Answer the following criteria in your post: Why do you agree or dis..
|
|
How many bottles should be orders during-particular visit
: Forest Restaurant stocks a red Brazilian table wine purchased from a nearby city. The daily demand for the wine at the restaurant is normally distributed with the mean of 20 bottles standard deviation of 5 bottles. How many bottles should be orders d..
|
|
How you would construct this plasmid
: Describe how you would construct this plasmid in order make the bacteria glow in the presence of contamination.
|