Rollins Corporation is estimating its WACC. Its target capital structure shows $ 400,000 debt and $ 600,000 common equity. Its bonds have 8 percent annual coupon, paid semiannually. The maturity of the bond is 20 years, and the bond sells at $900. Rollins is a constant-growth firm which just paid a dividend of $2.00, sells for $25.00 per share, and has a growth rate of 8 percent. If the firm issues new common stocks floatation costs will be 10%. The firm's marginal tax rate is 30 percent. Q3. Calculate WACC of Rollins if internal capital is enough to fund the equity portion of the budget. (6 points) Q4. Calculate WACC of Rollins if internal capital is not enough and the company has to issue new common stocks. (6 points)

Jason day company had bonds outstanding with a maturity value of $300,000. on april 30, 2017, when these bonds has an unamortized discount of $10,000, they were called in at 104. to pay for these bonds, day had issued other bonds a month earlier bearing a lower interest rate. the newly issued bonds had a life of 10 years. the new bonds were issued at 103 (face value $300,000).

Identify the accounting assumption or principle that is described below. (a) select the accounting assumption or principle is the rationale for why plant assets are not reported at liquidation value. (note: do not use the historical cost principle.) (b) select the accounting assumption or principle indicates that personal and business record-keeping should be separately maintained. (c) select the accounting assumption or principle assumes that the dollar is the "measuring stick" used to report on financial performance. (d) select the accounting assumption or principle separates financial information into time periods for reporting purposes. (e) select the accounting assumption or principle measurement basis used when a reliable estimate of fair value is not available. (f) select the accounting assumption or principle dictates that companies should disclose all circumstances and events that make a difference to financial statement users.

Social computing forces companies to deal with customers as opposed to