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1) Kelsols has a dete-equity natio of o6 and a tax rate of 35 percent. The firm doss not ismue peeferred tock. The cost of
1) Kelsols has a dete-equity natio of o6 and a tax rate of 35 percent. The firm doss not ismue peeferred tock. The cost of euiy is 14 5percent and the afhertax cost of dele is 4 weighted weinge cot of copital pecend. What is de ) 11.38 percent c 57 perce Di 1067 pecent 3 10 46 pecent 12) Thvis & Sons fas a capital structuro that is basest on 40 percent debx, 3 percent prefemed and SS percene rercent, and the cost of com considenig a project that is equally as risky as the overall firm. This project has initianl costs o comnon stock. The peetax cost of debe is 7,5 percent, the cost of preferred is 9 mon sock is 13 percent. The tas rate is 39 percent. The comay ectely What is the projected net present vahue of this projeer? 1D 569,361.08 ) $68 870.97 1) 574.20s.T& and 13) Bieskb Inmerpr ises has a capital structure of 45 percent common sdock, 5 percent preferred tock and p jpovent debt The lotation costs are d 5 percent for debt, 7 percent for o 5 percent lor common stock. What is the weighted average flotation cost? 407 percent B) 383 percent C) 6 42 percent 6.20 percent 6.88 pecen 14) The sapital structure weights used in computing a firm's weighted average cost of capital ADepend upon the financing obtained to fund each specific project. By Are based on the market values of the firm's debt and equity securities. C Remain constant over time unless the firm issues new securities. D) Are based on the book values of the firm's debt and equity E) Are restricted to the firm's debt and common stock
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