subject
Business, 09.10.2019 22:00 JanetQ2002

Adjusted wacc. thorpe and company is currently an all-equity firm. it has three million shares selling for $34 per share. its beta is 1.1, and the current risk-free rate is 3.4%. the expected return on the market for the coming year is 12.1%. thorpe will sell corporate bonds for $34 comma 000 comma 000 and retire common stock with the proceeds. the bonds are twenty-year semiannual bonds with a 12.4% coupon rate and $1 comma 000 par value. the bonds are currently selling for $985.51 per bond. when the bonds are sold, the beta of the company will increase to 1.6. what was the wacc of thorpe and company before the bond sale? wha

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 14:20
Xt year baldwin plans to include an additional performance bonus of 0.25% in its compensation plan. this incentive will be provided in addition to the annual raise, if productivity goals are reached. assuming the goals are reached, how much will baldwin pay its employees per hour?
Answers: 2
question
Business, 22.06.2019 06:00
Select the correct answer a research organization conducts certain chemical tests on samples. they have data available on the standard results. some of the samples give results outside the boundary of the standard results. which data mining method follows a similar approach? o a. data cleansing ob. network intrusion o c. fraud detection od. customer classification o e. deviation detection
Answers: 1
question
Business, 22.06.2019 10:50
Choose the statement that is incorrect. a. search activity occurs only in markets where there is a shortage. b. when a price is regulated and there is a shortage, search activity increases. c. the time spent looking for someone with whom to do business is called search activity. d. the opportunity cost of a good is equal to its price plus the value of the search time spent finding the good.
Answers: 3
question
Business, 22.06.2019 11:00
T-comm makes a variety of products. it is organized in two divisions, north and south. the managers for each division are paid, in part, based on the financial performance of their divisions. the south division normally sells to outside customers but, on occasion, also sells to the north division. when it does, corporate policy states that the price must be cost plus 20 percent to ensure a "fair" return to the selling division. south received an order from north for 300 units. south's planned output for the year had been 1,200 units before north's order. south's capacity is 1,500 units per year. the costs for producing those 1,200 units follow
Answers: 1
You know the right answer?
Adjusted wacc. thorpe and company is currently an all-equity firm. it has three million shares selli...
Questions
question
Mathematics, 15.12.2020 21:00
question
Mathematics, 15.12.2020 21:00
question
Mathematics, 15.12.2020 21:00
question
Social Studies, 15.12.2020 21:00
Questions on the website: 13722362