subject
Business, 18.12.2019 18:31 geezelouise808

Allcity, inc., is financed 35 % with debt, 10 % with preferred stock, and 55 % with common stock. its cost of debt is 6.4 %, its preferred stock pays an annual dividend of $ 2.49 and is priced at $ 28. it has an equity beta of 1.16. assume the risk-free rate is 2.4 %, the market risk premium is 7.4 % and allcity's tax rate is 35 %. what is its after-tax wacc? note: assume that the firm will always be able to utilize its full interest tax shield.

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 20:00
Jorge is a manager at starbucks. his operational plan includes achieving annual sales of $4,000,000 for his store. with only one month left to end of the fiscal year, jorge realizes that he won't reach his annual sales goal. what are his options?
Answers: 2
question
Business, 22.06.2019 20:50
Swathmore clothing corporation grants its customers 30 days' credit. the company uses the allowance method for its uncollectible accounts receivable. during the year, a monthly bad debt accrual is made by multiplying 3% times the amount of credit sales for the month. at the fiscal year-end of december 31, an aging of accounts receivable schedule is prepared and the allowance for uncollectible accounts is adjusted accordingly. at the end of 2012, accounts receivable were dollar 586.000 and the allowance account had a credit balance of dollar 50,000. accounts receivable activity for 2013 was as follows: the company's controller prepared the following aging summary of year-end accounts receivable: prepare a summary journal entry to record the monthly bad debt accrual and the write-offs during the year. (if no entry is required for a particular event, select "no journal entry required" in the first account field.) prepare the necessary year-end adjusting entry for bad debt expense. (if no entry is required for an event, select "no journal entry required" in the first account field.) what is total bad debt expense for 2013? calculate the amount of accounts receivable that would appear in the 2013 balance sheet?
Answers: 2
question
Business, 22.06.2019 21:20
In a market economy, supply and demand are important because theya. (i) play a critical role in the allocation of the economy's scarce resources.b. (ii) determine how much of each good gets produced.c. (iii) can be used to predict the impact on the economy of various events and policies.d. all of (i), (ii), and (iii) are correct.
Answers: 3
question
Business, 23.06.2019 04:20
What common business mistake can cost you everything
Answers: 1
You know the right answer?
Allcity, inc., is financed 35 % with debt, 10 % with preferred stock, and 55 % with common stock. it...
Questions
question
Mathematics, 20.09.2020 14:01