subject
Business, 06.12.2019 21:31 tjahaheuuwu

Hankins corporation has 6.9 million shares of common stock outstanding, 250,000 shares of 4.2 percent preferred stock outstanding, par value of $100; and 135,000 bonds with a semiannual coupon rate of 5.7 percent outstanding, par value $1,000 each. the common stock currently sells for $67 per share and has a beta of 1.05, the preferred stock has a par value of $100 and currently sells for $89 per share, and the bonds have 18 years to maturity and sell for 107 percent of par. the market risk premium is 7.7 percent, t-bills are yielding 2.8 percent, and the company's tax rate is 24 percent. a. what is the firm's market value capital structure? (do not round intermediate calculations and round your answers to 4 decimal places, e. g., 1616.) b. if the company is evaluating a new investment project that has the same risk as the firm's typical project, what rate should the firm use to discount the project's cash flows? (do not round intermediate calculations enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.) a. debtſ preferred stock equity b. discount rate

ansver
Answers: 2

Another question on Business

question
Business, 21.06.2019 13:00
The mars company's new topeka, kansas, manufacturing plant is the first new facility the company has opened in north america in 35 years. the new plant is which type of tangible resource?
Answers: 2
question
Business, 22.06.2019 09:30
An object that is clicked on and takes the presentation to a new targeted file is done through a
Answers: 2
question
Business, 22.06.2019 11:40
Vendors provide restaurants with what? o a. cooked items ob. raw materials oc. furniture od. menu recipes
Answers: 1
question
Business, 22.06.2019 21:00
Roberto and reagan are both 25 percent owner/managers for bright light inc. roberto runs the retail store in sacramento, ca, and reagan runs the retail store in san francisco, ca. bright light inc. generated a $125,000 profit companywide made up of a $75,000 profit from the sacramento store, a ($25,000) loss from the san francisco store, and a combined $75,000 profit from the remaining stores. if bright light inc. is an s corporation, how much income will be allocated to roberto?
Answers: 2
You know the right answer?
Hankins corporation has 6.9 million shares of common stock outstanding, 250,000 shares of 4.2 percen...
Questions
Questions on the website: 13722367