Business, 23.04.2021 16:00, Qpaoswp5914
Masterson, Inc., has 3.7 million shares of common stock outstanding. The current share price is $86.00, and the book value per share is $9.50. The company also has two bond issues outstanding. The first bond issue has a face value of $74 million, a coupon rate of 5.4 percent, and sells for 95.8 percent of par. The second issue has a face value of $46 million, a coupon rate of 5.9 percent, and sells for 105.1 percent of par. The first issue matures in 24 years, the second in 12 years. The most recent dividend was $4.07 and the dividend growth rate is 4.4 percent. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 24 percent.
a) What is the company’s cost of equity?
b) What is the company’s aftertax cost of debt?
c) What is the company’s weight of equity?
d) What is the company’s weight of debt?
e) What is the company’s WACC?
Answers: 2
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
Business, 22.06.2019 19:30, Lucid4465
Which of the following constitute the types of unemployment occurring at the natural rate of unemployment? a. frictional and cyclical unemployment. b. structural and frictional unemployment. c. cyclical and structural unemployment. d. frictional, structural, and cyclical unemployment.
Answers: 2
Masterson, Inc., has 3.7 million shares of common stock outstanding. The current share price is $86....
Mathematics, 02.04.2020 05:29
Chemistry, 02.04.2020 05:29
Mathematics, 02.04.2020 05:30
Mathematics, 02.04.2020 05:30
Mathematics, 02.04.2020 05:31
Mathematics, 02.04.2020 05:31