A firm has a market value equal to its book value. Currently, the firm has excess cash of $6,900 and other assets of $23,100. Equity is worth $30,000. The firm has 700 shares of stock outstanding and net income of $2,800. What will the stock price per share be if the firm pays out its excess cash as a cash dividend?

A)$33

B)$70

C)$37

D)$74

E)$41

Robinson's has 48,000 shares of stock outstanding with a par value of $1.00 per share and a market price of $56 a share. The balance sheet shows $48,000 in the common stock account, $525,000 in the paid in surplus account, and $550,000 in the retained earnings account. The firm just announced a 3-for-2 stock split. How many shares of stock will be outstanding after the split?

72,000 shares

32,000 shares

71,500 shares

40,000 shares

96,000 shares

The Tree House has a pretax cost of debt of 7.9 percent and a return on assets of 11.7 percent. The debt-equity ratio is 0.50. Ignore taxes. What is the cost of equity?

2.47 percent

13.60 percent

11.87 percent

12.98 percent

12.33 percent

Becker Industries is considering an all equity capital structure against one with both debt and equity. The all equity capital structure would consist of 38,000 shares of stock. The debt and equity option would consist of 19,000 shares of stock plus $275,000 of debt with an interest rate of 8 percent. What is the break-even level of earnings before interest and taxes between these two options? Ignore taxes.

$25,000

$44,000

$22,000

$11,000

$41,800

Phil's Carvings, Inc. wants to have a weighted average cost of capital of 6.2 percent. The firm has an aftertax cost of debt of 4.0 percent and a cost of equity of 8.0 percent. What debt-equity ratio is needed for the firm to achieve their targeted weighted average cost of capital?

2.22

0.82

1.22

0.41

1.82

Answer the Multiple Choice Questions please!