Business, 24.08.2021 23:50 zmirandalove100

Dragon Company’s assets are $750 million, financed through bank loans, bonds, preferred stocks, and common stocks. The amounts are as follows: Bank loans: $100 million borrowed at 5%.
Bonds: $280 million, paying an 8% coupon with semi-annual payments, and maturity of 10 years. Dragon sold its $1,000 par-value bonds for $970.
Preferred Stocks: $120 million, paying $15 dividends per share. Dragon sold its preferred shares for $220.
Common Stocks: $250 million, beta is 3.20, the risk-free rate is 5%, and the market rate is 10%.
If Dragon is subject to 30% tax rate, what is the WACC for Dragon? Ignore the flotation costs.

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 08:20

How much does a neurosurgeon can make most in canada? give me answer in candian dollar

Answers: 1

Answer

Business, 22.06.2019 16:30

Penelope summers received certain income benefits in 2018. she received $1,400 of state unemployment insurance benefits, $2,000 from a federal unemployment trust fund and $3,700 workers’ compensation received for an occupational injury. what amount of the compensation must penelope include in her income

Answers: 1

Answer

Business, 22.06.2019 18:00

When peter metcalf describes black diamond’s manufacturing facility in china as a “greenfield project,” he means that partnered with a chinese company to buy the plant . of all market entry strategies, this one carries the lowest risk. because black diamond manufactures its outdoor sports products outside the united states, what risks must its managers be aware of?

Answers: 1

Answer

Business, 22.06.2019 18:00

Bond j has a coupon rate of 6 percent and bond k has a coupon rate of 12 percent. both bonds have 14 years to maturity, make semiannual payments, and have a ytm of 9 percent. a. if interest rates suddenly rise by 2 percent, what is the percentage price change of these bonds?

Answers: 2

Answer

You know the right answer?

Dragon Company’s assets are $750 million, financed through bank loans, bonds, preferred stocks, and...

Questions