subject
Business, 19.11.2019 03:31 aidendespatieshakim

Jack's construction co. has 80 bonds outstanding that are selling at their par value of $1,000 each. bonds with similar characteristics are yielding a pretax 8.6 percent. the firm also has 4,000 shares of common stock outstanding. the stock has a beta of 1.1 and sells for $40 a share. the u. s. t-bill is yielding 4 percent, the market risk premium is 8 percent, and the firm's tax rate is 21 percent. what is the firm's weighted average cost of capital assuming its earnings are sufficient to classify all interest as a tax-deductible expense?

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 19:30
Quick calculate the roi dollar amount and percentage for these example investments. a. you invest $50 in a government bond that says you can redeem it a year later for $55. use the instructions in lesson 3 to calculate the roi dollar amount and percentage. (3.0 points) tip: subtract the initial investment from the total return to get the roi dollar amount. then divide the roi dollar amount by the initial investment, and multiply that number by 100 to get the percentage. b. you invest $200 in stocks and sell them one year later for $230. use the instructions in lesson 3 to calculate the roi dollar amount and percentage. (3.0 points) tip: subtract the initial investment from the total return to get the roi dollar amount. then divide the roi dollar amount by the initial investment, and multiply that number by 100 to get the percentage.
Answers: 2
question
Business, 23.06.2019 00:30
Considered to be a "super tool" or tool that has high use and high potential for improving project success?
Answers: 3
question
Business, 23.06.2019 00:40
Mesa company produces wooden rocking chairs. the company has two production departments, cutting and assembly. the wood is cut and sanded in cutting and then transferred to assembly to be assembled and painted. from assembly, the chairs are transferred to finished goods inventory and then are sold.mesa has compiled the following information for the month of february: cutting department assemblydepartmentdirect materials $ 73,000 $ 13,000direct labor 73,000 108,000applied manufacturing overhead 159,000 171,000cost of goods completed and transferred out 233,000 255,000required: 1, 2, 3, & 4. prepare journal entries for the transactions in the cutting and assembly departments of mesa company. (if no entry is required for a transaction/event, select "no journal entry required" in the first account field.)
Answers: 3
question
Business, 23.06.2019 02:20
When the benefit of one particular use of a resource is greater than the opportunity cost, then that resource is which of the following? a. not scarce b. being used efficiently c. a normal good d. non-excludable
Answers: 2
You know the right answer?
Jack's construction co. has 80 bonds outstanding that are selling at their par value of $1,000 each....
Questions
question
Chemistry, 08.11.2020 03:10
question
History, 08.11.2020 03:10
Questions on the website: 13722363