Question 2 The current capital structure of Blend Co is as follows: $'000 Ordinary shares 8,000
Preference shares 2,000
Long-term loans 2,000

(a) The after-tax cost of debt is 5%, cost of preference shares and ordinary shares are 8% and 15%, respectively. Compute Blend Co's WACC under the current capital structure.

(b) After reviewing the company's operations and growth plan, Blend Co decided to change its capital structure by issuing bonds at market value of $10 million. The before-tax required rate of return for these bonds is 6% and the company's tax rate is 10%. Required Compute the new WACC. (Hint: The cost of ordinary shares, preferences shares, loans and bonds should be weighted separately.] "

The green fiddle has declared a $5 per share dividend. suppose capital gains are not taxed, but dividends are taxed at 15 percent. new irs regulations require that taxes be withheld at the time the dividend is paid. green fiddle stock sells for $71.50 per share, and the stock is about to go ex-dividend. what will the ex-dividend price be?

Suppose that the u.s. dollars-mexican pesos exchange rate is fixed by the u.s. and mexican governments. assume also that labor is mobile between the united states and mexico due to low transportation costs.which of the following situations is likely to happen as a result of a simultaneous increase in the demand for u.s. goods and decrease in the demand for mexican goods? (pick mexican unemployment rate increases, and the country undergoes bad economic times for a sustained u.s. unemployment rate increases, and the country undergoes bad economic times for a sustained mexican unemployment rate rises at first, but it soon drops as unemployed mexicans move to the united states for mexican unemployment rate rises at first, but then it drops as mexican pesos depreciate against u.s. dollars.

Which term best describes the statement given below? if p = q and q = r, then p = r