Business, 07.11.2019 03:31 mcckenziee

Cede & co. expects its ebit to be $91,000 every year forever. the company can borrow at 7 percent. the company currently has no debt and its cost of equity is 12 percent and the tax rate is 22 percent. the company borrows $150,000 and uses the proceeds to repurchase shares. a. what is the cost of equity after recapitalization? (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.) b. what is the wacc? (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.)

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 19:30

Maker-bot corporation has 10,000 shares of 10%, $90 par value, cumulative preferred stock outstanding since its inception. no dividends were declared in the first two years. if the company pays $400,000 of dividends in the third year, how much will common stockholders receive?

Answers: 2

Answer

Business, 22.06.2019 09:50

phillips, inc. had the following financial data for the year ended december 31, 2019. cash $ 41,000 cash equivalents 75,000 long term investments 59,000 total current liabilities 149,000 what is the cash ratio as of december 31, 2019, for phillips, inc.? (round your answer to two decimal places.)

Answers: 3

Answer

Business, 23.06.2019 00:40

You are a team of marketing consultants. it is 2008 and the great recession has struck. one of your clients is whole foods market (sometimes known as whole paycheck). wfm has come to you and asked for strategic advice on how to adapt their product and pricing strategies in light of the economic downturn: 1. advise wfm on the various approaches that could be taken to reducing price. be sure to consider potential psychological impact of price reductions on wfm consumers. 2. based on the options outlined in part 1, recommend an approach and support with marketing theory.

Answers: 2

Answer

Business, 23.06.2019 03:00

If joe to go decides to produce its coffee beans domestically and sell them in india through a local retailer, this would be an example of

Answers: 2

Answer

You know the right answer?

Cede & co. expects its ebit to be $91,000 every year forever. the company can borrow at 7 perce...

Questions