On january 1, the total market value of the tysseland company was $60 million. during the year, the company plans to raise and invest $30 million in new projects. the firm's present market value capital structure, here below, is considered to be optimal. there is no short-term debt. debt $30,000,000 common equity 30,000,000 total capital $60,000,000 new bonds will have an 7% coupon rate, and they will be sold at par. common stock is currently selling at $30 a share. the stockholders' required rate of return is estimated to be 12%, consisting of a dividend yield of 4% and an expected constant growth rate of 8%. (the next expected dividend is $1.20, so the dividend yield is $1.20/$30 = 4%.) the marginal tax rate is 30%. in order to maintain the present capital structure, how much of the new investment must be financed by common equity? write out your answers completely. for example, 13 million should be entered as 13,000,000. round your answer to the nearest dollar.
Answers: 2
Business, 22.06.2019 09:30
When you hire an independent contractor you don't have to pay the contractors what
Answers: 3
Business, 22.06.2019 10:30
The card shoppe needs to maintain 21 percent of its sales in net working capital. currently, the store is considering a four-year project that will increase sales from its current level of $349,000 to $408,000 the first year and to $414,000 a year for the following three years of the project. what amount should be included in the project analysis for net working capital in year 4 of the project?
Answers: 3
Business, 22.06.2019 11:10
Sam and diane are completing their federal income taxes for the year and have identified the amounts listed here. how much can they rightfully deduct? • agi: $80,000 • medical and dental expenses: $9,000 • state income taxes: $3,500 • mortgage interest: $9,500 • charitable contributions: $1,000.
Answers: 1
Business, 22.06.2019 19:00
Question 55 ted, a supervisor for jack's pool supplies, was accused of stealing pool supplies and selling them to friends and relatives at reduced prices. given ted's earlier track record, he was not fired immediately. the authorities decided to give him an administrative leave, without pay, until the investigation was complete. in view of the given information, it would be most appropriate to say that ted was: demoted. discharged. suspended. dismissed.
Answers: 2
On january 1, the total market value of the tysseland company was $60 million. during the year, the...
History, 24.04.2020 10:18
Mathematics, 24.04.2020 10:18
History, 24.04.2020 10:18
Mathematics, 24.04.2020 10:18
Chemistry, 24.04.2020 10:18
History, 24.04.2020 10:18
Biology, 24.04.2020 10:18
English, 24.04.2020 10:18
Mathematics, 24.04.2020 10:18
Mathematics, 24.04.2020 10:18
Mathematics, 24.04.2020 10:18