subject
Business, 31.10.2019 02:31 ellieschiller0pdz93k

Travis & sons has a capital structure which is based on 40 percent debt, 5 percent preferred stock, and 55 percent common stock. the pre-tax cost of debt is 7.5 percent, the cost of preferred is 9 percent, and the cost of common stock is 13 percent. the company's tax rate is 39 percent. the company is considering a project that is equally as risky as the overall firm. this project has initial costs of $325,000 and annual cash inflows of $87,000, $279,000, and $116,000 over the next three years, respectively. what is the projected net present value of this project?

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 16:30
Gather reliable information to brent make his decision. to gather this information, use newspapers, call insurance companies or look at their web sites, and review consumer magazines and web sites. also, look at the manufacturer web site or for information about gas mileage. list the sources you use and take notes.
Answers: 3
question
Business, 22.06.2019 11:10
Your team has identified the risks on the project and determined their risk score. the team is in the midst of determining what strategies to put in place should the risks occur. after some discussion, the team members have determined that the risk of losing their network administrator is a risk they'll just deal with if and when it occurs. although they think it's a possibility and the impact would be significant, they've decided to simply deal with it after the fact. which of the following is true regarding this question? a. this is a positive response strategy.b. this is a negative response strategy.c. this is a response strategy for either positive or negative risk known as contingency planning.d. this is a response strategy for either positive or negative risks known as passive acceptance.
Answers: 2
question
Business, 22.06.2019 16:20
The following information relates to the pina company. date ending inventory price (end-of-year prices) index december 31, 2013 $73,700 100 december 31, 2014 100,092 114 december 31, 2015 107,856 126 december 31, 2016 123,009 131 december 31, 2017 113,288 136 use the dollar-value lifo method to compute the ending inventory for pina company for 2013 through 2017.
Answers: 1
question
Business, 22.06.2019 17:30
Four students are at an extracurricular activity fair at their high school and are trying to decide which clubs to join. some information about the students is listed in this chart: which describes which ctso each student should join?
Answers: 1
You know the right answer?
Travis & sons has a capital structure which is based on 40 percent debt, 5 percent preferred st...
Questions
question
Mathematics, 14.01.2021 22:20
question
English, 14.01.2021 22:20
question
English, 14.01.2021 22:20
Questions on the website: 13722367