The company finances its operations and growth opportunities, using common equity, debt, and preferred equity. It issued a 20 year, 6 percent (coupon rate of 6%) bonds 5 years ago. The bond is currently selling for $1080, and its face value is $1000. As for the preferred stock, the price per share is $89, and it pays $3.85 dividend per share annually. As for the common equity, the beta is 1.24. The total debt ratio is 0.4, the ratio of the market value of preferred equity divided by the value of total assets is 0.05. Assume the risk-free rate of 2%, the corporate tax rate of 30%, and the market risk premium of 7%.What comes closest to ABC's cost of preferred equity?a) 6% b) 4% c) 7% d) 5% e) 3%
Answers: 2
Business, 22.06.2019 15:00, swansondonovanp66got
Ineed this asap miguel's boss asks him to distribute information to the entire staff about a mandatory meeting. in 1–2 sentences, describe what miguel should do.
Answers: 1
Business, 22.06.2019 19:00, camidevecchis15
15. chef a insists that roux is the traditional thickener for bisque. chef b insists that it's rice. which chef is correct? a. neither chef is correct. b. both chefs are correct. c. chef b is correct. d. chef a is correct.
Answers: 1
Business, 22.06.2019 21:50, nakarelinp0p303
scenario: hawaii and south carolina are trading partners. hawaii has an absolute advantage in the production of both coffee and tea. the opportunity cost of producing 1 pound of tea in hawaii is 2 pounds of coffee, and the opportunity cost of producing 1 pound of tea in south carolina is 1/3 pound of coffee. which of the following statements is true? a. south carolina should specialize in the production of both tea and coffee. b. hawaii should specialize in the production of tea, whereas south carolina should specialize in the production of coffee. c. hawaii should specialize in the production of coffee, whereas south carolina should specialize in the production of tea. d. hawaii should specialize in the production of both tea and coffee.
Answers: 1
Business, 23.06.2019 04:50, sierrawalk6104
Suppose an investor starts with a portfolio consisting of one randomly selected stock. as more and more randomly selected stocks are added to the portfolio, what happens to the portfolio's risk
Answers: 1
The company finances its operations and growth opportunities, using common equity, debt, and preferr...
Mathematics, 20.07.2019 12:30