Bad boys, inc. is evaluating its cost of capital. under consultation, bad boys, inc. expects to issue new debt at par with a coupon rate of 8% and to issue new preferred stock with a $2.50 per share dividend at $25 a share. the common stock of bad boys, inc. is currently selling for $20.00 a share. bad boys, inc. expects to pay a dividend of $1.50 per share next year. an equity analyst foresees a growth in dividends at a rate of 5% per year. the bad boys, inc. marginal tax rate is 35%. if bad boys, inc. raises capital using 45% debt, 5% preferred stock, and 50% common stock, what is bad boys, inc.’s cost of capital?

Match each definition in column 1 with a vocabulary word from column 2." some of the entries in column 2 do not apply costs which do not change with the level of output costs which change with the level of output the change in total costs resulting from an increase in output by one unit function showing the quantities of a particular good demanded at a range of price when the quantity supplied of a good is greater than the quantity demanded when the quantity demanded for a particular good is greater than the quantity supplied the price and quantity determined in a market when the supply equals the demand when revenue exceeds costs when costs exceeds revenue output where revenue = costs