Shayan Industrial Corporation (SIC) is considering a large-scale recapitalization. Currently, SIC is financed with 25% debt and 75% equity. SIC is considering increasing its level of debt until it is financed with 60% debt and 40% equity. The beta on its common stock at the current level of debt is 1.5, the risk-free rate is 6%, the market risk premium is 4%, and SIC faces a 40% federal-plus-state tax rate. a. What is SIC’s current cost of equity? b. What is SIC’s unlevered beta? c. What will be the new beta and new cost of equity if SIC recapitalizes?
Answers: 2
Business, 22.06.2019 09:30, linnybear300
Any point on a country's production possibilities frontier represents a combination of two goods that an economy:
Answers: 3
Business, 22.06.2019 12:10, montgomerykarloxc24x
The cost of the beginning work in process inventory was comprised of $3,000 of direct materials, $10,000 of direct labor, and $10,000 of factory overhead. costs incurred during the period were comprised of $15,000 of direct materials costs, and $100,000 of conversion costs. the equivalent units of production (eup) for the period were 9,000 for direct materials and 6,000 for conversion. the costs per eup were:
Answers: 3
Business, 22.06.2019 19:20, Tariah5970
Sanibel autos inc. merged with its competitor vroom autos inc. this allowed sanibel autos to use its technological competencies along with vroom autos' marketing capabilities to capture a larger market share than what the two entities individually held. what type of integration does this scenario best illustrate? a. vertical b. technological c. horizontal d. perfect
Answers: 2
Business, 23.06.2019 00:30, ncosmebaez15
You have been solicited to conduct a performance evaluation for a public organization that has been corrupted over issues of personnel embezzling funds. before actually conducting the evaluation, you—the evaluator—need to know certain specifics to conduct a thorough evaluation. compose a proposal that describes what type of evaluation will be conducted. in the proposal, explain the type of public organization. describe some of the main services, products, and activities the organization provides to the public. describe the size of the problem, who is affected by the problem, how long the problem has been in existence, and how long the evaluation will take. also, describe what the evaluation will assess with respect to organizational leadership. finally, what outcomes do you propose the evaluation will to achieve for the organization?
Answers: 2
Shayan Industrial Corporation (SIC) is considering a large-scale recapitalization. Currently, SIC is...
Biology, 21.01.2022 21:20
History, 21.01.2022 21:20
Mathematics, 21.01.2022 21:20
English, 21.01.2022 21:20