subject
Business, 25.06.2019 04:30 jamarlittles9132

Consider the after-tax cash flows below from a project that is being considered by despondus corporation. since the project is an extension of the firm's current business, it carries the same risk as the overall firm. year 0 1 2 3 4 5 cash flow -$344,000 $86,000 $67,000 $111,000 $90,000 $97,000 despondus corporation's common stock is currently priced at $80.03, and there are 856,000,000 shares outstanding. a dividend of $3.29 per share was just paid, and dividends are expected to grow at a constant rate of 7.49% per year. the company has 6,460,000 bonds outstanding that mature in 23 years and are currently priced at $1,072 per bond. the coupon rate is 8.95%, and the bonds make semiannual interest payments. the company's tax rate is 39%. what is despondus corporation's after-tax cost of equity? what is despondus corporation's after-tax cost of debt? what is despondus corporation's weighted average cost of capital (wacc)? what is the net present value of the project? (round to the nearest dollar.) should the project be accepted? explain your answer; a simple 'yes' or 'no' will result in no points for this part of the question.

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 10:00
Cynthia is a hospitality worker in the lodging industry who prefers to cater to small groups of people. she might want to open a
Answers: 3
question
Business, 22.06.2019 11:30
Mark knopf is an auditor who has been asked to provide an audit and financial statement certification for a company that is going public on the new york stock exchange. knopf wants to know his personal liability if the company provides him with inaccurate or false information. which of the following sources of law will him answer that question? a. the city ordinances where the company headquarters is located. b. the state constitution of the state where the company is incorporated. c. code of federal regulations. d. all of the above
Answers: 1
question
Business, 23.06.2019 18:40
Joe needs to see the slide transitions and animations he has applied to his slide in a large view. which presentation view should he use? in which tab would joe find the animations option to make further changes, if any?
Answers: 1
question
Business, 23.06.2019 21:00
True or false: suppose that the hypothetical country of paddyland has a chronic scarcity of rice, its staple grain. this implies that if paddyland has a market economy, rice will be available only for a price.
Answers: 1
You know the right answer?
Consider the after-tax cash flows below from a project that is being considered by despondus corpora...
Questions
question
Mathematics, 25.11.2020 01:00
question
Mathematics, 25.11.2020 01:00
question
History, 25.11.2020 01:00
question
Mathematics, 25.11.2020 01:00