subject
Business, 06.12.2019 04:31 caitlyn79

Afirm currently has the following capital structure which it intends to maintain. debt: $3,000,000 par value of 9% bonds outstanding with an annual before‐tax yield to maturity of 7.67% on a new issue. the bonds currently sell for $115 per $100 par value. common stock: 46,000 shares outstanding currently selling for $50 per share. the firm expects to pay a $5.50 dividend per share one year from now and is experiencing a 3.67% growth rate in dividends, which it expects to continue indefinitely. the firmʹs marginal tax rate is 40%. the company has no plans to issue new securities.
1- the current total value of the firm is: a) $6,450,000.b) $5,750,000.c) $4,950,000.d) $3,250,000.

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 19:20
You wish to buy a cabin in 15 years. today, the cabin costs $150,000. you believe the price of the cabin will inflate at 4% annually. you want to invest a single amount of money (lump sum) today and have the money grow to equal the future purchase price of the cabin 15 years from now. if you can earn 10% annually on your investments, how much do you need to invest now, in order to be able to purchase the cabin?
Answers: 3
question
Business, 22.06.2019 04:50
Steffi is reviewing various licenses and their uses. match the licenses to their respective uses. you are eligible to work within the state. you are eligible to sell limited investment securities. you are eligible to sell fixed income investment products. your compensation is fee based. section 6 section 7 section 63 section 65
Answers: 3
question
Business, 22.06.2019 08:30
Blank is the internal operation that arranges information resources to support business performance and outcomes
Answers: 2
question
Business, 22.06.2019 10:30
Describe three scenarios in which you might utilize mathematics to investigate a crime scene, accident scene, or to make decisions involving police practice. be sure to explain how math is used in police as they work through each scenario.
Answers: 1
You know the right answer?
Afirm currently has the following capital structure which it intends to maintain. debt: $3,000,000...
Questions
question
Mathematics, 20.09.2020 14:01
Questions on the website: 13722359