subject
Business, 02.12.2019 22:31 jaileen84

Assume that you are an intern with the brayton company, and you have collected the following data: the yield on the company's outstanding bonds is 7.75%; its tax rate is 40%; the next expected dividend is $0.65 a share; the dividend is expected to grow at a constant rate of 6.00% a year; the price of the stock is $15.00 per share; the flotation cost for selling new shares is f = 10%; and the target capital structure is 45% debt and 55% common equity. what is the firm's wacc, assuming it must issue new stock to finance its capital budget?
select one:
a. 6.89%
b. 7.26%
c. 8.04%
d. 7.64%
e. 8.44%

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 12:20
Selected transactions of the carolina company are listed below. classify each transaction as either an operating activity, an investing activity, a financing activity, or a noncash activity. 1. common stock is sold for cash above par value. 2. bonds payable are issued for cash at a discount
Answers: 2
question
Business, 22.06.2019 13:30
What do you recommend adam do to increase production in a business setting that does not seem to value high productivity?
Answers: 3
question
Business, 22.06.2019 15:40
Rachel died in 2014 and her executor is finalizing her estate tax return. the executor has determined that rachel’s adjusted gross estate is $10,120,000 and that her estate is entitled to a charitable deduction in the amount of $500,000. using 2014 rates, calculate the estate tax liability for rachel’s estate.
Answers: 1
question
Business, 22.06.2019 16:30
Which of the following has the largest impact on opportunity cost
Answers: 2
You know the right answer?
Assume that you are an intern with the brayton company, and you have collected the following data:...
Questions
question
Social Studies, 26.06.2020 22:01
question
Mathematics, 26.06.2020 22:01
question
Mathematics, 26.06.2020 22:01
question
Mathematics, 26.06.2020 22:01
question
Mathematics, 26.06.2020 22:01
Questions on the website: 13722359