Business, 28.11.2019 04:31 shongmadi77
Adams corporation is considering four average-risk projects with the following costs and rates of returnproject ( $2,000, expected rate of return--16.00%project ( $3,000, expected rate of return--15.00%project (--$5,000, expected rate of return--13.75%project ( $2,000, expected rate of return--12.50%the company estimates that it can issue debt at a rate of rd = 10%, and its tax rate is 30%. it can issue preferred stock that pays a constant dividend of $3 per year at $40 per share. also, its common stock currently sells for $30 per share, the next expected dividend, d1, is $3.25, and the dividend is expected to grow at a constant rate of 4% per year. the target capital structure consists of 75% common stock, 15% debt, and 10% preferred stock. what is the cost of each of the capital components? round your answer to two decimal places. a. cost of %b. cost of preferred stock %c. cost of retained earnings %d. what is adams' wacc? round your answer to two decimal %
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Business, 22.06.2019 06:40
After the 2008 recession, the amount of reserves in the us banking system increased. because of federal reserve actions, required reserves increased from $44 billion to $60 billion. however, banks started holding more reserves than required. by january 2009, banks were holding $900 billion in excess reserves. the federal reserve started paying interest on the excess reserves that the banks held. what possible impact will these unused reserves have on the economy?
Answers: 1
Business, 22.06.2019 18:00
Large public water and sewer companies often become monopolies because they benefit from although the company faces high start-up costs, the firm experiences average production costs as it expands and adds more customers. smaller competitors would experience average costs and would be less
Answers: 1
Business, 22.06.2019 19:00
Describe how to write a main idea expressed as a bottom-line statement
Answers: 3
Adams corporation is considering four average-risk projects with the following costs and rates of re...
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