Business, 22.01.2021 14:00 richlovedarkwa5

Metal Fiber Industries, a fiber optic company is considering to optimize its capital structure. Its targeted capital structure consists of 20% debt, 30% preferred stocks, and 50% common stocks.
Metal Fiber Industries has been paying dividend 30% of its net income regularly. Current stock price is Rs. 54, and a constant growth rate is 9%. Metal fiber Industries expecting next year earning to be Rs. 44, 000,000. Last year dividend paid Rs. 3.60 by the company. Corporate tax rate is 40%.
Metal Fiber Industries considering to raise further debt at the interest rate of 12%. They are also considering to issue new preferred stock at 11% fixed dividend rate, which could be sold in the market at Rs. 110.

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 17:30

Being an expert problem solver is something you're either born with or not. true or false

Answers: 2

Answer

Business, 22.06.2019 05:30

Find a company that has followed a strong strategic direction- state that generic strategy and the back-up points to support your position.

Answers: 1

Answer

Business, 22.06.2019 11:00

T-comm makes a variety of products. it is organized in two divisions, north and south. the managers for each division are paid, in part, based on the financial performance of their divisions. the south division normally sells to outside customers but, on occasion, also sells to the north division. when it does, corporate policy states that the price must be cost plus 20 percent to ensure a "fair" return to the selling division. south received an order from north for 300 units. south's planned output for the year had been 1,200 units before north's order. south's capacity is 1,500 units per year. the costs for producing those 1,200 units follow

Answers: 1

Answer

Business, 22.06.2019 16:00

What impact might an economic downturn have on a borrower’s fixed-rate mortgage? a. it might cause a borrower’s payments to go up. b. it might cause a borrower’s payments to go down. c. it has no impact because a fixed-rate mortgage cannot change. d. it has no impact because the economy does not affect interest rates.

Answers: 1

Answer

You know the right answer?

Metal Fiber Industries, a fiber optic company is considering to optimize its capital structure. Its...

Questions