Titan Mining Corporation has 7.7 million shares of common stock outstanding, 285,000 shares of 4.4 percent preferred stock outstanding, and 170,000 bonds with a semiannual coupon rate of 6.1 percent outstanding, par value $2,000 each. The common stock currently sells for $60 per share and has a beta of 1.20, the preferred stock has a par value of $100 and currently sells for $96 per share, and the bonds have 15 years to maturity and sell for 104 percent of par. The market risk premium is 6.9 percent, T-bills are yielding 3.6 percent, and the company’s tax rate is 21 percent. a. What is the firm’s market value capital structure? (Do not round intermediate calculations and round your answers to 4 decimal places, e. g., .1616.) b. If the company is evaluating a new investment project that has the same risk as the firm’s typical project, what rate should the firm use to discount the project’s cash flows? (Do not round intermediate calculations enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.)
Answers: 3
Business, 21.06.2019 22:50
Tara incorporates her sole proprietorship, transferring it to newly formed black corporation. the assets transferred have an adjusted basis of $240,000 and a fair market value of $300,000. also transferred was $10,000 in liabilities, $1,000 of which was personal and the balance of $9,000 being business related. in return for these transfers, tara receives all of the stock in black corporation. a. black corporation has a basis of $241,000 in the property. b. black corporation has a basis of $240,000 in the property. c. tara’s basis in the black corporation stock is $241,000. d. tara’s basis in the black corporation stock is $249,000. e. none of the above.
Answers: 1
Business, 21.06.2019 23:00
James has set the goal of achieving all "a"s during this year of school.which term best describes this goal
Answers: 2
Business, 22.06.2019 12:10
This exercise illustrates that poor quality can affect schedules and costs. a manufacturing process has 130 customer orders to fill. each order requires one component part that is purchased from a supplier. however, typically, 3% of the components are identified as defective, and the components can be assumed to be independent. (a) if the manufacturer stocks 130 components, what is the probability that the 130 orders can be filled without reordering components? (b) if the manufacturer stocks 132 components, what is the probability that the 130 orders can be filled without reordering components? (c) if the manufacturer stocks 135 components, what is the probability that the 130 orders can be filled without reordering components?
Answers: 3
Business, 22.06.2019 15:10
You want to have $80,000 in your savings account 11 years from now, and you’re prepared to make equal annual deposits into the account at the end of each year. if the account pays 6.30 percent interest, what amount must you deposit each year? (do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answers: 1
Titan Mining Corporation has 7.7 million shares of common stock outstanding, 285,000 shares of 4.4 p...
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