subject
Business, 09.10.2019 22:00 JanetQ2002

Adjusted wacc. thorpe and company is currently an all-equity firm. it has three million shares selling for $34 per share. its beta is 1.1, and the current risk-free rate is 3.4%. the expected return on the market for the coming year is 12.1%. thorpe will sell corporate bonds for $34 comma 000 comma 000 and retire common stock with the proceeds. the bonds are twenty-year semiannual bonds with a 12.4% coupon rate and $1 comma 000 par value. the bonds are currently selling for $985.51 per bond. when the bonds are sold, the beta of the company will increase to 1.6. what was the wacc of thorpe and company before the bond sale? wha

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 19:40
Bear, inc. estimates its sales at 200,000 units in the first quarter and that sales will increase by 20,000 units each quarter over the year. they have, and desire, a 25% ending inventory of finished goods. each unit sells for $35. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. the remainder is received in the quarter following sale. cash collections for the third quarter are budgeted at
Answers: 3
question
Business, 22.06.2019 16:20
Carlos hears juan and rita’s complaints about the new employees with whom they have to work with, as well as their threats to quit the company. if carlos were to reassign juan and rita to new, unique roles and separate them from the ronny and bill, it would signal that carlos has moved into the stage of managing resistance.
Answers: 3
question
Business, 22.06.2019 21:00
Identify whether the statements are true or false by dragging and dropping the appropriate term into the bin provided. long-run economic growth is unlikely to be sustainable because of finite natural resources. in the modern economy, countries that possess few domestic natural resources essentially have no chance to develop economically. finding alternatives to natural resources will be very important to long-term economic growth. in the modern economy, human and physical capital are generally less important in productivity than natural resources. in the 19th century, countries with the highest per capita gdp were nearly always abundant in minerals and productive farming land.
Answers: 1
question
Business, 22.06.2019 21:50
Which of the following best describes the economic effect that results from the government having a budget surplus? a. consumers save more and spend less, enabling long-term financial planning. b. overall demand decreases, reducing the incentive for producers to increase production. c. banks have more deposits, enabling them to make more loans to investors. d. government spending increases, increasing competition for goods and services and driving prices up.
Answers: 3
You know the right answer?
Adjusted wacc. thorpe and company is currently an all-equity firm. it has three million shares selli...
Questions
question
English, 16.10.2020 19:01
question
Chemistry, 16.10.2020 19:01
question
Mathematics, 16.10.2020 19:01
Questions on the website: 13722360