subject
Business, 18.12.2019 02:31 edjiejwi

Marginal incorporated (mi) has determined that its before-tax cost of debt is 5% for the first $25 million in bonds it issues, and 9% for any bonds issued above $25 million. its cost of preferred stock is 13%. its cost of internal equity is 16%, and its cost of external equity is 18%. currently, the firm's capital structure has $410 million of debt, $80 million of preferred stock, and $510 million of common equity. the firm's marginal tax rate is 45%. the firm is currently making projections for next period. its managers have determined that the firm should have $53 million available from retained earnings for investment purposes next period. what is the firm's marginal cost of capital at each of the following total investment levels?

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 19:20
Which of the following best explains why large companies have an advantage over smaller companies? a. economies of scale make it possible to offer lower prices. b. the production possibilities frontier is wider for a larger company. c. decreasing marginal utility enables more efficient production. d. increasing the scale of production leads to a reduction in inputs.2b2t
Answers: 1
question
Business, 22.06.2019 03:00
If you were running a company, what are at least two things you could do to improve its productivity.
Answers: 1
question
Business, 22.06.2019 14:20
In canada, the reference base period for the cpi is 2002. by 2012, prices had risen by 21.6 percent since the base period. the inflation rate in canada in 2013 was 1.1 percent. calculate the cpi in canada in 2013. hint: use the information that “prices had risen by 21.6 percent since the base period” to find the cpi in 2012. use the inflation rate formula (inflation is the growth rate of the cpi) to find cpi in 2013, knowing the cpi in 2012 and the inflation rate. the cpi in canada in 2013 is round up your answer to the first decimal. 122.9 130.7 119.6 110.5
Answers: 1
question
Business, 22.06.2019 17:30
Four students are at an extracurricular activity fair at their high school and are trying to decide which clubs to join. some information about the students is listed in this chart: which describes which ctso each student should join?
Answers: 1
You know the right answer?
Marginal incorporated (mi) has determined that its before-tax cost of debt is 5% for the first $25 m...
Questions
question
Mathematics, 16.09.2020 02:01
question
Mathematics, 16.09.2020 02:01
question
Mathematics, 16.09.2020 02:01
question
Mathematics, 16.09.2020 02:01
question
English, 16.09.2020 02:01
question
Mathematics, 16.09.2020 02:01
question
Spanish, 16.09.2020 02:01
question
Mathematics, 16.09.2020 02:01
question
Mathematics, 16.09.2020 02:01
question
History, 16.09.2020 02:01
question
Mathematics, 16.09.2020 02:01
question
Mathematics, 16.09.2020 02:01
question
Geography, 16.09.2020 02:01
question
Mathematics, 16.09.2020 02:01
question
Mathematics, 16.09.2020 02:01
question
Mathematics, 16.09.2020 02:01
question
Mathematics, 16.09.2020 02:01
question
Mathematics, 16.09.2020 02:01
question
History, 16.09.2020 02:01
question
Mathematics, 16.09.2020 02:01
Questions on the website: 13722361