subject
Business, 30.07.2021 16:00 marziel24

Barton Industries expects that its target capital structure for raising funds in the future for its capital budget will consist of 40% debt, 5% preferred stock, and 55% common equity. Note that the firm's marginal tax rate is 25%. Assume that the firm's cost of debt, rd, is 6.9%, the firm's cost of preferred stock, rps, is 6.4% and the firm's cost of equity is 10.9% for old equity, rs, and 11.5% for new equity, re. What is the firm's weighted average cost of capital (WACC1) if it uses retained earnings as its source of common equity

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 04:30
Galwaysc electronics makes two products. model a requires component a and component c. model b requires component b and component c. new versions of both models are released each year with updated versions of all components. all components are sourced overseas, and abc contracts annually for a quantity of each component before seeing that year’s demand. components are only assembled into finished products once demand for each model is known. for the coming year, alwaysc’s purchasing manner has proposed ordering 500,000 units of component a, 630,000 of component b, and 1,000,000 units of component c. her boss has asked why she has recommended purchasing so much of components a and b when alwaysc will not have enough of component c to fully use all of the inventory of a and b. what factors might the purchasing manager cite to explain her recommended order? explain your reasoning.
Answers: 3
question
Business, 22.06.2019 07:50
The questions of economics address which of the following ? check all that apply
Answers: 3
question
Business, 22.06.2019 11:10
Post test question number 9 for entering the job market
Answers: 1
question
Business, 23.06.2019 10:30
How many years do you have to go to school for business management
Answers: 2
You know the right answer?
Barton Industries expects that its target capital structure for raising funds in the future for its...
Questions
Questions on the website: 13722367