Mathematics, 26.10.2021 21:30 mchillery1028
Company X has the following capital structure, which it considers to be optimal:
Debt =33%, Preferred stock = 28%, Common equity = 39%
Company X’s tax rate is 25% and investors expect earnings and dividends to grow at a constant rate of 6.5% in the future. Company X is expected to pay a dividend of $4.40 per share next year, and its stock currently sells at a price of $55 per share.
Company X can obtain new capital in the following ways:
Preferred: New preferred stock with a dividend of $13 can be sold to the public at a price of $109 per share.
Debt: Debt can be sold at an interest rate of 11%.
Calculate the following:
a. Cost of Common equity?
b. Cost of Preferred Equity?
c. Cost of debt?
d. Weighted Average Cost of Capital (WACC)
Answers: 3
Mathematics, 21.06.2019 17:00
The tuition costs, c, for a local community college are modeled by c(h) = 250 + 200h, where h represents the number of credit hours taken. the local state university has tuition costs, s, modeled by the function s(h) = 300 + 180h. how many credit hours will a student have to take for the two tuition costs to be equal? round the answer to the nearest tenth of an hour.
Answers: 3
Mathematics, 21.06.2019 17:30
Jacks bank statement shows an account balance of -$25.50. which describes the magnitude, of size, of the debt in dollars
Answers: 2
Mathematics, 21.06.2019 18:00
Assume that the weights of quarters are normally distributed with a mean of 5.67 g and a standard deviation 0.070 g. a vending machine will only accept coins weighing between 5.48 g and 5.82 g. what percentage of legal quarters will be rejected? round your answer to two decimal places.
Answers: 1
Mathematics, 21.06.2019 18:20
What is the solution to the equation? k/6.4=8.7 2.3 5.568 15.1 55.68
Answers: 1
Company X has the following capital structure, which it considers to be optimal:
Debt =33%, Prefer...
Chemistry, 31.12.2021 03:20
Geography, 31.12.2021 03:20
Social Studies, 31.12.2021 03:20
Mathematics, 31.12.2021 03:20
Health, 31.12.2021 03:20
Mathematics, 31.12.2021 03:20
Chemistry, 31.12.2021 03:20
Geography, 31.12.2021 03:20
Social Studies, 31.12.2021 03:20
Mathematics, 31.12.2021 03:20
Mathematics, 31.12.2021 03:30
Chemistry, 31.12.2021 03:30
Mathematics, 31.12.2021 03:30