Business
Business, 23.07.2019 13:30, destinybonmer

The well derrick has 5.5 percent preferred stock outstanding that sells for $48 a share. this stock was originally issued at $45 per share. what is the cost of preferred stock if the firm’s tax rate is 35 percent?

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Business, 27.08.2019 18:30, ameliaduxha7
1- the lo tech co. just issued a dividend of $2.30 per share on its common stock. the company is expected to maintain a constant 7 percent growth rate in its dividends indefinitely. if the stock sells for $43.10 a share, what is the company’s cost of equity? a- 7% b-12.71% c-12.34% 2- sixth fourth bank has an issue of preferred stock with a $6.10 stated dividend that just sold for $123 per share. what is the bank’s cost of preferred stock? a-6.10% b-4.96% c-2.02% 3- jiminy's cricket farm issued a 30-year, 7.6 percent semiannual bond 6 years ago. the bond currently sells for 92.5 percent of its face value. the company’s tax rate is 38 percent. what is the pretax cost of debt? a-8.33% b-4.16% c-7.60% 4-mullineaux corporation has a target capital structure of 64 percent common stock, 9 percent preferred stock, and 27 percent debt. its cost of equity is 12.9 percent, the cost of preferred stock is 5.9 percent, and the cost of debt is 7.6 percent. the relevant tax rate is 40 percent. what is mullineaux’s wacc? a-4.56% b-10.02% c-12.90% 5-organic produce corporation has 9.4 million shares of common stock outstanding, 690,000 shares of 7.40 percent preferred stock outstanding, and 194,000 of 8.6 percent semiannual bonds outstanding, par value $1,000 each. the common stock currently sells for $65.90 per share and has a beta of 1.39, the preferred stock currently sells for $106.10 per share, and the bonds have 13 years to maturity and sell for 86.5 percent of par. the market risk premium is 7.00 percent, t-bills are yielding 5.70 percent, and the firm’s tax rate is 35 percent. calculate the company's wacc. a-13.04% b-15.43% c-10.53 6-information on janicek power co. is shown below. assume the company’s tax rate is 38 percent. debt: 9,300 8.3 percent coupon bonds outstanding, $1,000 par value, 22 years to maturity, selling for 101 percent of par; the bonds make semiannual payments. common stock: 218,000 shares outstanding, selling for $83.80 per share; beta is 1.23. preferred stock: 12,800 shares of 5.9 percent preferred stock outstanding, currently selling for $97.20 per share. market: 7.15 percent market risk premium and 4.95 percent risk-free rate. calculate the company’s wacc. a-8.20% b-6.07% c-10.60%
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The well derrick has 5.5 percent preferred stock outstanding that sells for $48 a share. this stock...

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