all are together
Use the following information for the next 3. questions Next year's capital budget for Harris Electronics is being planned by their CEO, Kathryn. It is nt its optimal capital structure of 50 percent common equity and 20 percent debt, and the company's earlings and dividends are growing at a constant route of 9 percent. The last dividend. Do was 0.94, and the company's stock currently sells at a price of 521 per share. The firm can raise debt at a 7 percent before tnx cost, and is projecting net income to be $3.200.000 with a dividend payout entio of 18 percent. If the firm issues new common stock. a 6 percent flotation cost will be incurred. The firm's marginal tax rate is 40 percent What is the cost of retained enmings? a. 14.19 percent b. 13.48 percent C. 10.88 percent d. 13.88 percent 0.010,74 percent 4 p QUESTION 22 Next yenr's capital budget for Harris Electronics is being planned by their CEO, Kathryn. It is nt its optimal capital structure of 80 percent common equity and 20 percent debt, and the company's eamings and dividends are growing at a constant rate of 9 percent. The last dividend. Do was $0.94, and the company's stock currently sells at a price of S21 per share. The firm can raise debt at a 7 percent before tax cost, and is projecting net income to be $3,200.000 with a dividend payout ratio of 18 percent. If the firm issues new common stock. a 6 percent flotation cost will be incurred. The firm's marginal tax rate is 40 percent. Find the brendedown of common equity used if the company ends up spending $3.5 million of new capital. a $2,624,000 retnined earings and S1 76,000 common stock $2,624,000 retained earnings and $576,000 common stock Ob C. $2,800,000 retained earnings and $700,000 common stock d. $2.870,000 retained earnings and 5630,000 common stock o. None of the above is within $100 of the correct numbers, QUESTION 23 Next year's capital budget for Harris Electronics is being planned by their CEO, Kathryn. It is at its optimal capital structure of 80 percent common equity and 20 percent debt, and the company's earnings and dividends are growing at a constant rate of 9 percent. The last dividend. Do, was $0.94, and the company's stock currently sells at a price of S21 per share. The fimm con raise debt at a 7 percent before tax cost, and is projecting net income to be 53.200.000 with a dividend payout ratio of 18 percent. If the firm issues new common stock. a 6 percent flotation cost will be incurred. The firm's marginal tax rate is 40 percent. What is the WACC in the MCC schedule? 12.05 percent a b.11.94 percent C. 11.62 percent d. 12.46 percent e. 12.19 percent
