subject
Business, 21.11.2019 00:31 sylviaelizabeth4135

Cde inc.'s current (and optimal) capital structure is 40% debt, 10% preferred stock, and 50% common equity. cde is in the 40% tax bracket. the company can issue up to $20,000,000 in new bonds at par with a 7% coupon rate; any subsequent amount must carry a 2% premium to compensate investors for added risk. a new issue of preferred stock would pay an annual dividend of $4.00 and be priced to net the company $50.00 per share after the $3.00 per share floatation cost. the firm has $21,000,000 in change in retained earnings for the current period. cde's common stock trades at $40.00 per share and the expected dividend on the common stock at t1 is 2.00. floatation costs on a new common stock issue is $5.00 per share. the company is growing at 7% per year. what is the debt break point in the marginal cost of capital (mcc) schedule?

ansver
Answers: 2

Another question on Business

question
Business, 21.06.2019 23:30
You are frustrated to find that the only way to contact the customer service department is to make a phone call. the number listed would result in long distance charges to your phone bill. which issue should be addressed by the company to keep its crm in line with your expectations?
Answers: 2
question
Business, 22.06.2019 02:30
Required information [the following information applies to the questions displayed below.] the following data is provided for garcon company and pepper company. garcon company pepper company beginning finished goods inventory $ 13,800 $ 18,850 beginning work in process inventory 16,700 20,700 beginning raw materials inventory 8,800 13,500 rental cost on factory equipment 28,250 26,650 direct labor 22,400 37,400 ending finished goods inventory 17,300 14,300 ending work in process inventory 23,200 19,400 ending raw materials inventory 5,900 9,600 factory utilities 11,250 15,000 factory supplies used 10,900 5,700 general and administrative expenses 32,500 44,500 indirect labor 2,500 9,880 repairs—factory equipment 4,820 2,150 raw materials purchases 41,500 63,000 selling expenses 54,800 49,000 sales 238,530 317,510 cash 33,000 23,700 factory equipment, net 222,500 124,825 accounts receivable, net 13,400 23,950 required: 1. complete the table to find the cost of goods manufactured for both garcon company and pepper company for the year ended december 31, 2017. 2. complete the table to calculate the cost of goods sold for both garcon company and pepper company for the year ended december 31, 2017.
Answers: 2
question
Business, 22.06.2019 07:30
1  2  3  4  5  6  7  8  9  10time remaining59: 30in  the dark game, how does the author develop the central idea that elizabeth van lew was a spymaster during the civil war? 1 2 3 4 5 6 7 8 9 10time remaining59: 30in the dark game, how does the author develop the central idea that elizabeth van lew was a spymaster during the civil war?
Answers: 1
question
Business, 22.06.2019 18:00
Rosie and her brother michael decided recently to purchase an rv together. they both want to use the rv to take their families camping. the price of the rv was $10,000. since michael expects to use the rv 60% of the time and rosie 40% of the time, michael contributed $6,000 and rosie contributed $4,000. their ownership percentage equals their contribution percentage. which type of property titling should they use to reflect their ownership interest?
Answers: 1
You know the right answer?
Cde inc.'s current (and optimal) capital structure is 40% debt, 10% preferred stock, and 50% common...
Questions
question
French, 20.07.2021 21:00
question
Mathematics, 20.07.2021 21:00
question
Mathematics, 20.07.2021 21:10
question
Mathematics, 20.07.2021 21:10
Questions on the website: 13722361