Business, 13.03.2020 04:35, cuzhernamesari

Suppose now that there is not enough internal cash flow and the firm must issue new shares of stock. Qualitatively speaking, what will happen to the WACC? I. rs and the WACC will not be affected by flotation costs of new equity. II. rs and the WACC will increase due to the flotation costs of new equity. III. rs and the WACC will decrease due to the flotation costs of new equity. IV. rs will increase and the WACC will decrease due to the flotation costs of new equity. V. rs will decrease and the WACC will increase due to the flotation costs of new equity. Check My WorkReset Problem

Answers: 1

Show answers

Other questions on the subject: Business

Business, 22.06.2019 06:40, lexhorton2002

Burke enterprises is considering a machine costing $30 billion that will result in initial after-tax cash savings of $3.7 billion at the end of the first year, and these savings will grow at a rate of 2 percent per year for 11 years. after 11 years, the company can sell the parts for $5 billion. burke has a target debt/equity ratio of 1.2, a beta of 1.79. you estimate that the return on the market is 7.5% and t-bills are currently yielding 2.5%. burke has two issuances of bonds outstanding. the first has 200,000 bonds trading at 98% of par, with coupons of 5%, face of $1000, and maturity of 5 years. the second has 500,000 bonds trading at par, with coupons of 7.5%, face of $1000, and maturity of 12 years. kate, the ceo, usually applies an adjustment factor to the discount rate of +2 for such highly innovative projects. should the company take on the project?

Answers: 1

continue

Business, 22.06.2019 10:30, Uc34758

Issued to the joint planning and execution community (jpec) initiates the development of coas; it also requests that the supported ccdr submit a commander's estimate of the situation with a recommended coa to resolve the situation (joint force command and staff participation in the joint operation planning and execution system, page 10)

Answers: 2

continue

Business, 22.06.2019 11:00, ilovecatsomuchlolol

Down under products, ltd., of australia has budgeted sales of its popular boomerang for the next four months as follows: unit salesapril 74,000may 85,000june 114,000july 92,000the company is now in the process of preparing a production budget for the second quarter. past experience has shown that end-of-month inventory levels must equal 10% of the following month’s unit sales. the inventory at the end of march was 7,400 units. required: prepare a production budget by month and in total, for the second quarter.

Answers: 3

continue

Business, 22.06.2019 11:00, igtguith

T-comm makes a variety of products. it is organized in two divisions, north and south. the managers for each division are paid, in part, based on the financial performance of their divisions. the south division normally sells to outside customers but, on occasion, also sells to the north division. when it does, corporate policy states that the price must be cost plus 20 percent to ensure a "fair" return to the selling division. south received an order from north for 300 units. south's planned output for the year had been 1,200 units before north's order. south's capacity is 1,500 units per year. the costs for producing those 1,200 units follow

Answers: 1

continue

Do you know the correct answer?

Suppose now that there is not enough internal cash flow and the firm must issue new shares of stock....