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1)Baron Corporation has a target capital structure of 75 percent common stock, 5 percent preferred stock, and 20 percent debt. Its cost of equity is
1)Baron Corporation has a target capital structure of 75 percent common stock, 5 percent preferred stock, and 20 percent debt. Its cost of equity is 3.26 percent, the cost of preferred stock is 9.07 percent, and the pretax cost of debt is 1.03 percent. The relevant tax rate is 21 percent.
What is the company's WACC?
2)
The owners equity accounts for Masterson International are shown here: |
Common stock ($1 par value) | $ | 37,045 | ||
Capital surplus | 157,000 | |||
Retained earnings | 603,000 | |||
Total owners equity | $ | 805,000 |
The company declares a 4-for-1 stock split. |
How many shares are outstanding now?
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