What is the initial cost of the plant if the company raises

Assignment Help Financial Management

Reference no: EM131912964

The curent answers are incorrect.

Trower Corp. has a debt-equity ratio of .90. The company is considering a new plant that will cost $113 million to build. When the company issues new equity, it incurs a flotation cost of 8.3 percent. The flotation cost on new debt is 3.8 percent.

What is the initial cost of the plant if the company raises all equity externally? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

What is the initial cost of the plant if the company typically uses 60 percent retained earnings? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

What is the initial cost of the plant if the company typically uses 100 percent retained earnings? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Reference no: EM131912964

Questions Cloud

Standard deviation of the difference : The standard deviation of the difference was 5 mmHg. What was the power of the test to find a mean difference of 2.5 mmHg at a = 0.05 (two-sided)?

Find its price be two years from today : The price of the bond is $52,170. If the yield to maturity of this bond does not change during the life of the bond, what will its price be two years from today

How much interest will he earn after tax for the second year : How much interest will he earn after tax for the second year of his investment if he withdraws enough cash every year to pay the tax on the interest he earns?

Breaking strength of cables : The breaking strength of cables manufactured by a company is normally distributed with a mean of 1080 pounds and a standard deviation of 45 pounds.

What is the initial cost of the plant if the company raises : What is the initial cost of the plant if the company typically uses 100 percent retained earnings ?

Create the journal entry to record the issuance of the bonds : Create the journal entry to record the issuance of the bonds. Prepare the adjusting entry to record the accrual of interest on December 31, 2015.

What is mean of the distribution of sample means : A population of values has a normal distribution with µ=128.4 and s=13.7 You intend to draw a random sample of size n=165

What is the npv at a discount rate of zero percent : What is the NPV at a discount rate of zero percent? Round your final answer to the nearest dollar amount.

What is the z-score for this sample mean : A sample of n = 16 scores is selected from a population with µ = 60 and s = 24. If the sample mean is M = 66, what is the z-score for this sample mean?

User Account

All Pages