Business, 28.11.2019 00:31, flowerchild44
Edna recording studios, inc., reported earnings available to common stock of $4 comma 200 comma 0004,200,000 last year. from those earnings, the company paid a dividend of $1.261.26 on each of its 1 comma 000 comma 0001,000,000 common shares outstanding. the capital structure of the company includes 4040% debt, 1010% preferred stock, and 5050% common stock. it is taxed at a rate of 2121%. a. if the market price of the common stock is $40 and divendends are expected to grow at a rate of 6% per year for the forseeable future, what is the company's cost of retained earnings financing?
b. if underpricing and floatation costs on new shares of common stock amount to $7.00 per share, what is the company's cost of new common stock financing?
c. the company can issue $2.00 dividend preferred stock for a market price of $25.00 per share. flotation costs would amount to $3.00 per share. what is the cost of perferred stock financing?
d. the company can issue $1,000-par-value, 10% coupon, 5-year bonds that can be sold for $1,200 each. floatation costs would amount to $25.00 per bond. use the estimation formula to figure the approximate cost of debt financing.
e. what is the wacc?
Answers: 2
Other questions on the subject: Business
Business, 22.06.2019 00:00, jboii11
Choose the list of the best uses for word processing software. lists, resumes, writing a book, and payroll data letters to your friends, resumes, spreadsheets, and school papers resumes, cover letters, databases, and crossword puzzles book reports, letters to your friends, resumes, and contracts
Answers: 2
Business, 22.06.2019 03:30, Geo777
Assume that all of thurmond company’s sales are credit sales. it has been the practice of thurmond company to provide for uncollectible accounts expense at the rate of one-half of one percent of net credit sales. for the year 20x1 the company had net credit sales of $2,021,000 and the allowance for doubtful accounts account had a credit balance, before adjustments, of $630 as of december 31, 20x1. during 20x2, the following selected transactions occurred: jan. 20 the account of h. scott, a deceased customer who owed $325, was determined to be uncollectible and was therefore written off. mar. 16 informed that a. nettles, a customer, had been declared bankrupt. his account for $898 was written off. apr. 23 the $906 account of j. kenney & sons was written off as uncollectible. aug. 3 wrote off as uncollectible the $750 account of clarke company. oct. 20 wrote off as uncollectible the $1,130 account of g. michael associates. oct. 27 received a check for $325 from the estate of h. scott. this amount had been written off on january 20 of the current year. dec. 20 cater company paid $7,000 of the $7,500 it owed thurmond company. since cater company was going out of business, the $500 balance it still owed was deemed uncollectible and written off. required: prepare journal entries for the december 31, 20x1, and the seven 20x2 transactions on the work sheets provided at the back of this unit. then answer questions 8 and 9 on the answer sheet. t-accounts are also provided for your use in answering these questions. 8. which one of the following entries should have been made on december 31, 20x1?
Answers: 1
Business, 22.06.2019 19:40, madisynk78
Adistinguishing feature of ecological economics is the concept of cost-benefit analysis steady-state economies that, like natural systems, neither grow nor shrink environmental damage and also environmental benefits are external greenwashing to increase public acceptance of products the only healthy economy is one that is growing
Answers: 1
Do you know the correct answer?
Edna recording studios, inc., reported earnings available to common stock of $4 comma 200 comma 0004...
Questions in other subjects:
Medicine, 02.09.2020 18:01
Law, 02.09.2020 18:01
Mathematics, 02.09.2020 18:01
History, 02.09.2020 18:01
