Mathematics, 11.10.2019 21:20 yami85
A-rod manufacturing company is trying to calculate its cost of capital for use in making a capital budgeting decision. mr. jeter, the vice-president of finance, has given you the following information and has asked you to compute the weighted average cost of capital. the company currently has outstanding a bond with a 9.6 percent coupon rate and another bond with an 7.2 percent rate. the firm has been informed by its investment banker that bonds of equal risk and credit rating are now selling to yield 10.5 percent. the common stock has a price of $50 and an expected dividend (d1) of $1.70 per share. the historical growth pattern (g) for dividends is as follows: $ 1.25 1.39 1.54 1.70 the preferred stock is selling at $70 per share and pays a dividend of $6.60 per share. the corporate tax rate is 30 percent. the flotation cost is 2.0 percent of the selling price for preferred stock. the optimal capital structure for the firm is 25 percent debt, 10 percent preferred stock, and 65 percent common equity in the form of retained earnings. a. compute the historical growth rate.
Answers: 2
Mathematics, 21.06.2019 19:30
Cor d? ? me ? max recorded the heights of 500 male humans. he found that the heights were normally distributed around a mean of 177 centimeters. which statements about max’s data must be true? a) the median of max’s data is 250 b) more than half of the data points max recorded were 177 centimeters. c) a data point chosen at random is as likely to be above the mean as it is to be below the mean. d) every height within three standard deviations of the mean is equally likely to be chosen if a data point is selected at random.
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Mathematics, 21.06.2019 21:00
What is the unit rate of, 75% high fiber chimp food to 25% high protein chimp food.
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Mathematics, 21.06.2019 21:20
If f(x) = 4 - x2 and g(x) = 6x, which expression is equivalent to (g-f)(3)? 06-3-(4 + 3)2 06-3-(4-33 6(3) - 4 +32 6(3) -4 -32
Answers: 1
A-rod manufacturing company is trying to calculate its cost of capital for use in making a capital b...
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