Jordan Co.'s CFO is trying to determine the company's WACC. He has determined that the company's before-tax cost of debt is 8.7%. The company currently has $100,000 of debt, and the CFO believes that the book value of the company's debt is a good approximation for the market value of the company's debt.

* The firm's cost of preferred stock is 9.9%, and the book value of preferred stock is $10,500.

* Its cost of equity is 13.2%, and the company currently has $85,000 of common equity on its balance sheet.

* The CFO has estimated that the firm's market value of preferred stock is $30,000, and the market value of its common equity is $140,000.

Determine Jordan's WACC if its subject to tax rate of 40%

a. 6.48%
b. 11.36%
c. 9.88%
d. 6.42%

Pennewell publishing inc. (pp) is a zero growth company. it currently has zero debt and its earnings before interest and taxes (ebit) are $80,000. pp's current cost of equity is 10%, and its tax rate is 40%. the firm has 10,000 shares of common stock outstanding selling at a price per share of $48.00. refer to the data for pennewell publishing inc. (pp). pp is considering changing its capital structure to one with 30% debt and 70% equity, based on market values. the debt would have an interest rate of 8%. the new funds would be used to repurchase stock. it is estimated that the increase in risk resulting from the added leverage would cause the required rate of return on equity to rise to 12%. if this plan were carried out, what would be pp's new value of operations? a. $484,359 b. $521,173 c. $584,653 d. $560,748 e. $487,805

Afood worker has just rinsed a dish after cleaning it.what should he do next?

On december 31, 2013, coronado company issues 173,000 stock-appreciation rights to its officers entitling them to receive cash for the difference between the market price of its stock and a pre-established price of $10. the fair value of the sars is estimated to be $5 per sar on december 31, 2014; $2 on december 31, 2015; $10 on december 31, 2016; and $8 on december 31, 2017. the service period is 4 years, and the exercise period is 7 years. prepare a schedule that shows the amount of compensation expense allocable to each year affected by the stock-appreciation rights plan.