Rollins Corporation is estimating its WACC. Its target capital structure shows $ 400,000 debt and $ 600,000 common equity. Its bonds have 8 percent annual coupon, paid semiannually. The maturity of the bond is 20 years, and the bond sells at $900. Rollins is a constant-growth firm which just paid a dividend of $2.00, sells for $25.00 per share, and has a growth rate of 8 percent. If the firm issues new common stocks floatation costs will be 10%. The firm's marginal tax rate is 30 percent. Q3. Calculate WACC of Rollins if internal capital is enough to fund the equity portion of the budget. (6 points)
Answers: 3
Business, 21.06.2019 16:10
Visburg concrete company pours concrete slabs for single-family dwellings. lancing construction company, which operates outside visburg's normal sales territory, asks visburg to pour 40 slabs for lancing's new development of homes. visburg has the capacity to build 300 slabs and is presently working on 250 of them. lancing is willing to pay only $3, 300 per slab. visburg estimates the cost of a typical job to include unit-level materials, $1, 440: unit-level labor, $720: and an allocated portion of facility-level overhead, $1, 200. required calculate the contribution to profit from the special order. should visburg accept or reject the special order to pour 40 slabs for $3, 300 each?
Answers: 2
Business, 21.06.2019 17:40
Sodas in a can are supposed to contain an average of 12 ounces. this particular brand has a standard deviation of 0.1 ounces, with an average of 12.1 ounces. if the can's contents follow a normal distribution, what is the probability that the mean contents of a six pack are less than 12 ounces?
Answers: 2
Business, 22.06.2019 04:00
Which law would encourage more people to become homeowners but not encourage risky loans that could end in foreclosure? options: offering first time homebuyers tax-free accounts to save for down payments requiring all mortgages to be more affordable, interest-only loans outlawing home inspections and appraisals by mortgage companies limiting rent increases to less than 2% a year
Answers: 2
Business, 22.06.2019 05:00
Identify an organization with the low-total-cost value proposition and suggest at least two possible measures within each of the four balanced scorecard perspectives.
Answers: 3
Rollins Corporation is estimating its WACC. Its target capital structure shows $ 400,000 debt and $...
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