Business
Business, 20.12.2019 22:31, naomicervero

Assume ford motor company is discussing new ways to recapitalize the firm and raise additional capital. its current capital structure has a 25% weight in equity, 10% in preferred stock, and 65% in debt. the cost of equity capital is 13%, the cost of preferred stock is 9%, and the pretax cost of debt is 8%. what is the weighted average cost of capital for ford if its marginal tax rate is 40%?

a) 8.36 %
b) 8.00 %
c) 6.91%
d) 7.27%

answer
Answers: 3

Other questions on the subject: Business

image
Business, 21.06.2019 14:00, myiacoykendall
Jason day company had bonds outstanding with a maturity value of $300,000. on april 30, 2017, when these bonds has an unamortized discount of $10,000, they were called in at 104. to pay for these bonds, day had issued other bonds a month earlier bearing a lower interest rate. the newly issued bonds had a life of 10 years. the new bonds were issued at 103 (face value $300,000).
Answers: 2
image
Business, 21.06.2019 23:30, Sebs1
Afreelance​ singer-songwriter is planning the restoration of a recently purchased civil​ war-era farmhouse. while he professes an enjoyment​ of, and talent in the construction​ trades, the theory of comparative advantage implies that a. the value of what he imports​ (in this​ case, professional contractor​ services) must equal the value of what he exports​ (songs). b. he should concentrate on the restoration work since his​ out-of-pocket costs will be much lower than if he hires professionals. c. ​self-sufficiency is​ advantageous, hence he should split his time between music and construction. d. the income lost while away from music will likely exceed the savings realized by doing the work​ himself, thus, he should hire professionals to do the restoration work. e. he ought to do as much of the work himself as possible since imports​ (in this​ case, professional contractor​ services) should always be restricted to those things that cannot be done internall
Answers: 2
image
Business, 22.06.2019 08:30, bartonamber4042
What has caroline's payment history been like? support your answer with two examples
Answers: 3
image
Business, 22.06.2019 11:20, leshayellis1591
Lusk corporation produces and sells 14,300 units of product x each month. the selling price of product x is $25 per unit, and variable expenses are $19 per unit. a study has been made concerning whether product x should be discontinued. the study shows that $72,000 of the $102,000 in monthly fixed expenses charged to product x would not be avoidable even if the product was discontinued. if product x is discontinued, the annual financial advantage (disadvantage) for the company of eliminating this product should be:
Answers: 1
Do you know the correct answer?
Assume ford motor company is discussing new ways to recapitalize the firm and raise additional capit...

Questions in other subjects: