Business, 01.11.2019 03:31 luceridiaaz
Afirm has determined its optimal structure which is composed of the following sources and target market value proportions.
target market source of capital proportions
long-term debt 60%
common stock equity 40
debt: the firm can sell a 15-year, $1,000 par value, 8 percent bond for $1,050. a flotation cost of 2 percent of the face value would be required in addition to the premium of $50.
common stock: a firm's common stock is currently selling for $75 per share. the dividend expected to be paid at the end of the coming year is $5. its dividend payments have been growing at a constant rate for the last five years. five years ago, the dividend was $3.10. it is expected that to sell, a new common stock issue must be underpriced $2 per share and the firm must pay $1 per share in flotation costs. additionally, the firm has a marginal tax rate of 40 percent.
18) the firm's cost of retained earnings is (see table 9.2) a) 18.9 percent b) 15.0 percent c) 10.2 percent d) 14.3 percent
19) the weighted average cost of capital up to the point when retained earnings are exhausted is (see table 9.2) a) 7.7 percent b) 11.29 percent c) 8.7 percent d) 6.8 percent
20) assuming the firm plans to pay out all of its earnings as dividends, the weighted average cost of capital is (see table 9.2) a) 12.1 percent b) 10.44 percent c) 8.9 percent d) 11.6 percent
Answers: 3
Business, 22.06.2019 00:30
How did lani lazzari show her investors she was a good investment? (site 1)
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Business, 22.06.2019 01:30
The gomez company, a merchandising firm, has budgeted its activity for december according to the following information: • sales at $500,000, all for cash. • merchandise inventory on november 30 was $250,000. • the cash balance at december 1 was $20,000. • selling and administrative expenses are budgeted at $50,000 for december and are paid for in cash. • budgeted depreciation for december is $30,000. • the planned merchandise inventory on december 31 is $260,000. • the cost of goods sold represents 75% of the selling price. • all purchases are paid for in cash. the budgeted cash disbursements for december are:
Answers: 3
Business, 22.06.2019 16:40
Job 456 was recently completed. the following data have been recorded on its job cost sheet: direct materials $ 2,418 direct labor-hours 74 labor-hours direct labor wage rate $ 13 per labor-hour machine-hours 137 machine-hours the corporation applies manufacturing overhead on the basis of machine-hours. the predetermined overhead rate is $14 per machine-hour. the total cost that would be recorded on the job cost sheet for job 456 would be: multiple choice $3,380 $5,298 $6,138 $2,622
Answers: 1
Afirm has determined its optimal structure which is composed of the following sources and target mar...
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