Business, 22.02.2020 03:35 adriana145
Recapitalization Currently, Forever Flowers Inc. has a capital structure consisting of 25% debt and 75% equity. Forever’s debt currently has a 7% yield to maturity. The risk-free rate is 6% and the market risk premium is 7%. Using the CAPM, Forever estimates that its cost of equity is currently 14.5%. The company has a 40% tax rate. What is Forever’s current WACC? What is the current beta on Forever’s common stock? What would Forever’s beta be if the company had no debt in its capital structure?
Answers: 3
Business, 22.06.2019 02:30
The dollar value generated over decades of customer loyalty to your company is known as brand equity. viability. sustainability. luck.
Answers: 1
Business, 22.06.2019 05:00
Ajewelry direct sales company pays its consultants based on recruiting new members. question 1 options: the company is running a pyramid scheme, which is illegal. the company is running a pyramid scheme, which is legal. the company has implemented a legal and ethical plan for growth. the company uses this method of compensation to reduce the fee for the product sample kit.
Answers: 3
Business, 22.06.2019 17:00
Afinancing project has an initial cash inflow of $42,000 and cash flows of −$15,600, −$22,200, and −$18,000 for years 1 to 3, respectively. the required rate of return is 13 percent. what is the internal rate of return? should the project be accepted?
Answers: 1
Business, 22.06.2019 20:00
On january 1, year 1, purl corp. purchased as a long-term investment $500,000 face amount of shaw, inc.’s 8% bonds for $456,200. the bonds were purchased to yield 10% interest. the bonds mature on january 1, year 6, and pay interest annually on january 1. purl uses the effective interest method of amortization. what amount (rounded to nearest $100) should purl report on its december 31, year 2, balance sheet for these held-to-maturity bonds?
Answers: 1
Recapitalization Currently, Forever Flowers Inc. has a capital structure consisting of 25% debt and...
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