subject
Business, 12.04.2021 18:30 bendlogan2687

Barton Industries expects that its target capital structure for raising funds in the future for its capital budget will consist of 40% debt, 5% preferred stock, and 55% common equity. Note that the firm's marginal tax rate is 25%. Assume that the firm's cost of debt, rd, is 10.7%, the firm's cost of preferred stock, rp, is 9.9% and the firm's cost of equity is 13.3% for old equity, rs, and 13.7% for new equity, re. What is the firm's weighted average cost of capital (WACC1) if it uses retained earnings as its source of common equity

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 21:30
What are the main advantages and disadvantages of organizing a firm as a c corporation? the advantages are: (select all the choices that apply.) a. there is no limit on the number of owners a c corporation may have, thus allowing the corporation to raise substantial amounts of capital. b. the life of the business can continue beyond the death of any of the owners. c. the corporation can use the assets of the owners to pay for corporate liabilities. this attracts smaller investors to the corporation. d. the liability of the owners is limited to the amount of their investment in the firm. the disadvantages are: (select all the choices that apply.) a. income to a c corporation is subject to double taxation, once at the corporate level and again when received by the owners in the form of a dividend. b. the life of the business usually ends with the death of any of the owners. c. the c corporation is more complicated and more expensive to set up than other business entities. d. corporate liabilities can be passed on to the share
Answers: 1
question
Business, 22.06.2019 04:10
Oakmont company has an opportunity to manufacture and sell a new product for a four-year period. the company’s discount rate is 18%. after careful study, oakmont estimated the following costs and revenues for the new product: cost of equipment needed $ 230,000 working capital needed $ 84,000 overhaul of the equipment in year two $ 9,000 salvage value of the equipment in four years $ 12,000 annual revenues and costs: sales revenues $ 400,000 variable expenses $ 195,000 fixed out-of-pocket operating costs $ 85,000 when the project concludes in four years the working capital will be released for investment elsewhere within the company. click here to view exhibit 12b-1 and exhibit 12b-2, to determine the appropriate discount factor(s) using tables.
Answers: 2
question
Business, 22.06.2019 09:00
Drag the tiles to the correct boxes to complete the pairs.(there's not just one answer)match each online banking security practice with the pci security requirement that mandates it.1. encrypting transfer of card data2. installing a firewall3. installing antivirus software4. assigning unique ids and user namesa. vulnerability management programb. credit card data protectionc. strong access controlsd. secure network
Answers: 3
question
Business, 22.06.2019 12:10
Which of the following is not part of the mission statement of the department of homeland security? lead the unified national effort to secure america protect against and respond to threats and hazards to the nation ensure safe and secure borders coordinate intelligence operations against terrorists in other countries
Answers: 1
You know the right answer?
Barton Industries expects that its target capital structure for raising funds in the future for its...
Questions
question
Biology, 01.06.2021 23:20
question
Mathematics, 01.06.2021 23:20
question
Mathematics, 01.06.2021 23:20
Questions on the website: 13722367