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1) 2) 3) 4) A company has unit sales of 7,428 in this fiscal year. The average unit sales price is $6.89 and the variable
1)2)3)4)
A company has unit sales of 7,428 in this fiscal year. The average unit sales price is $6.89 and the variable cost per unit is $4.86. The company's fixed operating costs are $11,303. What is the degree of operating leverage? Report your answer in decimal form rounded to the fourth decimal place. You are analyzing a common stock that has a beta of 1.02, a sustainable growth rate of 4.6 percent, the current risk-free rate is 0.6 percent, and the expected return on the market is 6 percent. What is the company's cost of equity? Report your answer in decimal form rounded to the fourth decimal place (e.g., .1234). You are analyzing a common stock's most recent dividend is $0.72 per share, a sustainable growth rate of 4.3 percent, and a current share price of $52.42. Based on the dividend valuation model, what is the cost of equity? Report your answer in decimal form rounded to the fourth decimal place (e.g., 0.1234). Consider following information about a company: The risk-free rate is 2 percent. The market return is 9 percent. The stock's beta is 1. The company's bonds mature in 20 years, have a 6 percent annual coupon, a par value of $100 and a market price of $100 The company's tax rate is 32 percent. The target capital structure consists of 0.41 percent debt and the balance is common equity. The company uses the capital asset pricing model to estimate the cost of equity, and it does not expect to issue any new common stock. What is the company's weighted average cost of capital? Report your answer in decimal form rounded to the fourth decimal place (e..g., 0.1234)Step by Step Solution
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