Business, 07.09.2021 22:20 Leonorareed5145
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) Q4. Calculate WACC of Rollins if internal capital is not enough and the company has to issue new common stocks. (6 points)
Answers: 3
Business, 22.06.2019 11:50
The basic difference between macroeconomics and microeconomics is that: a. microeconomics looks at the forest (aggregate markets) while macroeconomics looks at the trees (individual markets). b. macroeconomics is concerned with groups of individuals while microeconomics is concerned with single countries. c. microeconomics is concerned with the trees (individual markets) while macroeconomics is concerned with the forest (aggregate markets). d. macroeconomics is concerned with generalization while microeconomics is concerned with specialization.
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Business, 22.06.2019 17:00
During which of the following phases of the business cycle does the real gdp fall? a. trough b. expansion c. contraction d. peak
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Business, 22.06.2019 19:10
Ancho corp. is an automobile company whose core competency lies in manufacturing petrol- and diesel- based cars. the company realizes that more of its potential customers are switching to electric cars. the r& d department of the company acquires competencies in developing electric cars and launches its first hybrid car, which uses both gas and electricity. in this scenario, ancho is primarilya. leveraging new core competencies to improve current market position. b. redeploying existing core competencies to compete in future markets. c. unlearning existing core competencies to create and compete in markets of the future. d. building new core competencies to protect and extend current market position
Answers: 3
Rollins Corporation is estimating its WACC. Its target capital structure shows $ 400,000 debt and $...
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