subject
Business, 07.05.2020 02:06 frankcaroccio0203

Easy Car Corp. is a grocery store located in the Southwest. It plans to pay an annual dividend of $2.00 next year to its shareholders and plans to increase the dividend annually at the rate of 2.0%. It currently has 1,000,000 common shares outstanding. The shares currently sell for $12 each. Easy Car Corp. also has 20,000 semiannual bonds outstanding with a coupon rate of 9%, a maturity of 26 years, and a par value of $1,000. The bonds currently have a yield to maturity (YTM) of 6%. What is the weighted average cost of capital (WACC) for Easy Car Corp. if the corporate tax rate is 30%?

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 13:00
Ronald works for a small biotech firm. when the firm presents the results of its clinical trials to the fda, ronald realizes that the results are not accurate. he reports this to the fda. ronald is a(n)
Answers: 3
question
Business, 22.06.2019 16:20
There are three factors that can affect the shape of the treasury yield curve (r* t , ip t , and mrp t ) and five factors that can affect the shape of the corporate yield curve (r* t , ip t , mrp t , drp t , and lp t ). the yield curve reflects the aggregation of the impacts from these factors. suppose the real risk-free rate and inflation rate are expected to remain at their current levels throughout the foreseeable future. consider all factors that affect the yield curve. then identify which of the following shapes that the us treasury yield curve can take. check all that apply.a. downward-sloping yield curveb. upward-sloping yield curvec. inverted yield curve
Answers: 1
question
Business, 23.06.2019 00:20
E11-2 (multiple choice) identify the best answer for each of the following: which of the following statements about internal service fund liabilities is false? internal service funds may report both current and long-term liabilities. internal service funds may not issue bonds for financing purposes. internal service funds may report contingent liabilities. due to other funds would be reported as a current liability
Answers: 3
question
Business, 23.06.2019 01:30
True or false: it is generally better to concentrate your exercise time on the weekends only for maximum aerobic benefit.
Answers: 1
You know the right answer?
Easy Car Corp. is a grocery store located in the Southwest. It plans to pay an annual dividend of $2...
Questions
question
Mathematics, 25.01.2021 01:00
question
German, 25.01.2021 01:00
question
Mathematics, 25.01.2021 01:00
question
Mathematics, 25.01.2021 01:00
question
Mathematics, 25.01.2021 01:00
question
SAT, 25.01.2021 01:00
Questions on the website: 13722363