Business
Business, 21.07.2019 06:20, Fuunn326

Granite works maintains a debt-equity ratio of .65 and has a tax rate of 32 percent. the pretax cost of debt is 9.8 percent. there are 25,000 shares of stock outstanding with a beta of 1.2 and a market price of $19 a share. the current market risk premium is 8.5 percent and the current risk-free rate is 3.6 percent. this year, the firm paid an annual dividend of $1.10 a share and expects to increase that amount by 2 percent each year. using an average expected cost of equity, what is the weighted average cost of capital?

answer
Answers: 1

Other questions on the subject: Business

image
Business, 22.06.2019 00:30, krystlemiller4307
A) plot the m1 and m2 money stock in the us from 1990-2015. (hint: you may use the data tools provided by fred.) (b) plot the nominal interest rate from 1960 to 2014. (hint: you can either use the daily interest rates for selected u. s. treasury, private money market and capital market instruments from or the effective federal funds rate fromfred.) (c) the consumer price index (cpi) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. intuitively, the cpi represents the cost of living or the average price level. plot the cpi from 1960 to 2013.(d) the inflation rate is the yearly percentage change in the average price level. in practice, we usually use the percentage change in the cpi to compute the inflation rate. plot the inflation rate from 1960 to 2013.(e) explain the difference between the ex-ante and ex-post real interest rate. use the fisher equation to compute the ex-post real interest rate. plot the nominal interest rate and the ex-post real interest rate from 1960 to 2013 in the same graph.
Answers: 3
image
Business, 22.06.2019 04:00, tomboyswagge2887
The simple interest in a loan of $200 at 10 percent interest per year is
Answers: 2
image
Business, 22.06.2019 11:00, aiueo946
Aprofessional does specialized work that's primarily: degree based. medical or legal. well paying. intellectual and creative
Answers: 2
image
Business, 22.06.2019 12:30, bella51032
True or false entrepreneurs try to meet the needs of the marketplace by supplying a service or product
Answers: 1
Do you know the correct answer?
Granite works maintains a debt-equity ratio of .65 and has a tax rate of 32 percent. the pretax cost...

Questions in other subjects:

Konu
Chemistry, 28.10.2019 00:43
Konu
Mathematics, 28.10.2019 00:43
Konu
Biology, 28.10.2019 00:43