subject
Mathematics, 04.08.2020 23:01 Hellopeople233

New Ideas Inc. currently has 30,000 of its 9% semi-annual coupon bonds outstanding (Par value =1000). The bonds will mature in 15 years and are currently priced at $1,340 per bond. The firm also has an issue of 1 million preferred shares outstanding with a market price of $11.00. The preferred shares offer an annual dividend of $1.20. 3New Ideas Inc. also has 2 million shares of common stock outstanding with a price of $30.00 per share. The firm is expected to pay a$3.20 common dividend one year from today, and that dividend is expected to increase by 7 percent per year forever. The firm typically pays floatation costs of 2% of the price on all newly issued securities. If the firm is subject to a 35 percent marginal tax rate, then what is the firm’s weighted average cost of capital?

ansver
Answers: 3

Another question on Mathematics

question
Mathematics, 21.06.2019 20:00
2.5 milligrams is equivalent to how many grams
Answers: 2
question
Mathematics, 21.06.2019 20:30
Justin has 750 more than eva and eva has 12 less than justin together they have a total of 63 how much money did
Answers: 1
question
Mathematics, 21.06.2019 20:30
You’re giving a cube with a length of 2.5 cm and a width of 2.5 cm and a high of 2.5 cm you place it on a scale and it is 295 g calculate the density
Answers: 1
question
Mathematics, 22.06.2019 02:00
What is the area of this figure. select from the drop down box menu to correctly complete the statement shows a rectangle 3in. by 16in. and a trapezoid center is 10 in. by 5 in. answers are 128 136 153 258
Answers: 2
You know the right answer?
New Ideas Inc. currently has 30,000 of its 9% semi-annual coupon bonds outstanding (Par value =1000)...
Questions
question
World Languages, 28.01.2020 13:28
question
Mathematics, 28.01.2020 13:28
Questions on the website: 13722363