Marie Corp. has $1,457 in debt outstanding and $2,676 in common stock (and no preferred stock)....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Marie Corp. has $1,457 in debt outstanding and $2,676 in common stock (and no preferred stock). Its marginal tax rate is 30%. Marie's bonds have a YTM of 4.4%. The current stock price (Po) is $46. Next year's dividend is expected to be $2.83, and it is expected to grow at a constant rate of 8% per year forever. The company's W.A.C.C. is %. Margin of error for correct responses: +/- .10(%) Rounding and Formatting instructions: Do not enter dollar signs, percent signs, commas, X, or any words in your response. Do not round any intermediate work, but round your *final* response to 2 decimal places (example: if your answer is 12.3456, 12.3456%, or $12.3456, you should enter 12.35). Note: Correct answer feedback may show more than 2 decimal places, but you should still follow instructions above for entering your answers. Marie Corp. has $1,457 in debt outstanding and $2,676 in common stock (and no preferred stock). Its marginal tax rate is 30%. Marie's bonds have a YTM of 4.4%. The current stock price (Po) is $46. Next year's dividend is expected to be $2.83, and it is expected to grow at a constant rate of 8% per year forever. The company's W.A.C.C. is %. Margin of error for correct responses: +/- .10(%) Rounding and Formatting instructions: Do not enter dollar signs, percent signs, commas, X, or any words in your response. Do not round any intermediate work, but round your *final* response to 2 decimal places (example: if your answer is 12.3456, 12.3456%, or $12.3456, you should enter 12.35). Note: Correct answer feedback may show more than 2 decimal places, but you should still follow instructions above for entering your answers.
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
The FBI Standard Survey of Crimes shows that for about 80% of all property crimes (burglary, larceny, car theft, etc.), the criminals are never found and the case is never solved (Source: True Odds,...
-
The plaintiff, a German wine producer and exporter, contracted to ship 620 cases of wine to the defendant, a distributor in North Carolina. The contract was silent as to the shipment destination....
-
Name this molecule. Br Br Br FC-C-C
-
Show how Figure 14-8 could be modified to use a temperature swing instead of a pressure swing. What might be advantages and disadvantages of doing this? Solid Bed PH Turbo- expander PL SCF Compressor...
-
Young Tree Construction Company uses the percentage-of-completion method of accounting. In 2014, Young Tree began work under a contract with a contract price of $1,500,000. Other details follow:...
-
Test the hypotheses shown below for a random sample with s = 142 and n = 28 at the 5% significance level. Ho: 0 100 H: 0 > 100 Click the icon to view the upper critical values of Chi-square...
-
Box A Purple Pens 10 Box A Red Pens 23 Box B - purple pens 16 Box B - red pens 8 5. Name an event with either box A or box B where the probability would be 3.
-
Beto Company pays $7.50 per unit to buy a part for one of the products it manufactures. With excess capacity, the company is considering making the part. Making the part would cost $8.70 per unit for...
-
McDeal Fabricated Products (MFP) manufactures a wide range of internally designed products. Over the past years, sales are generated mainly from the company's website and catalogues to trade...
-
write the domain of the function f(x) = (10x) + 7/(2x-7)(9x+2)
-
A bank has just written European put options on 10.000 shares of a stock on which no exchange-traded options exist. A group of employees discusses how to best hedge this position. All of them agree...
-
The stereotypical automobile dealership uses tactics like high pressure and bargaining to get customers to buy is an example of what type orientation
-
What is the pH of a solution if the concentration of H 3 O + is 0.366
-
The Adjusted Trial Balance columns of a 10-column work sheet for Webber Co. follow. Complete the work sheet by extending the account balances into the appropriate financial statement columns and by...
-
Debra Company reports the following financial information for the year: Accounts receivable: Based on prior experience the management of Debra Company expects two percent of credit sales to be...
-
1. In an effort to increase collections, Bishop Company offers a 1/10, n/30 discount for early payment. Assume a sale of \($150,000\) made on August Ist. Determine the total sales, the sales...
-
Consider the following balance sheet data for Davis Co., Inc., an electronics and major appliance retailer, at February 26, 2019 and February 27, 2018 (amounts in thousands): a. Prepare a comparative...
Study smarter with the SolutionInn App