FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Al-Pinar Inc. expects to generate free-cash of $150000 per year forever. If the firm's cost of capital is 0.12 percent,the firm cost of equity capital

image text in transcribed

Al-Pinar Inc. expects to generate free-cash of $150000 per year forever. If the firm's cost of capital is 0.12 percent,the firm cost of equity capital is 0.16 the market value of debt is $340000, the market value of preferred stock is $75000, and the company has 100000 shares of stock outstanding. What is the value of Al- Pinar's stock? what is the value of the firm what is the value of the c.s

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Handbook Of Research In Education Finance And Policy

Handbook Of Research In Education Finance And Policy

Authors: Helen F. Ladd, Margaret E. Goertz

2nd Edition

0415838010, 978-0415838016

More Books

Students also viewed these Finance questions

Question

★★★★★
For the 7-TeV (kinetic energy) protons produced by the Large Hadron Collider, determine (a) The total energy and (b) The momentum of each proton. (c) By how much (in m/s) does their speed differ from...

Answered: 1 week ago

Question

★★★★★
This work will familiarize you with the six "sticky" principles from Chip and Dan Heath's book, Made to Stick . These principles are useful for word-of-mouth marketing and give insight into why some...

Answered: 1 week ago

Question

★★★★★
=+ (b) Show in the nonatomic case that P(A) > 0 and > 0 imply that there exists a B such that B CA and 0 Answered: 1 week ago

Answered: 1 week ago

Question

★★★★★
Its business involves production of both stock items and custom pieces for doctors at research hospitals. At the end of the third quarter of 2011, it became clear to Ed Walters, chief operating...

Answered: 1 week ago

Question

★★★★★
The firm you founded currently has 12 million shares, of which you own 7 million. You are considering an IPO where you would sell 2 million shares for $30.90. What is the maximum number of secondary...

Answered: 1 week ago

Question

★★★★★
Research on the internet Requests for Proposals (RFP).Preferably, these would be RFPs in your professional career of choice.Share the specific RFP in brief summary and elaborate on the very specific...

Answered: 1 week ago

Question

★★★★★
Men are more likely than women to use stress coping by blaming others. In conclusion, Men, and Women equally use blaming others and copying mechanisms. The average for both seems to be slightly lower...

Answered: 1 week ago

Question

★★★★★
Your workplace is experiencing change, the owner of the company is deciding to selling the company. Explain how this change will affect the company and the employees. Opening: Tell the audience what...

Answered: 1 week ago

Question

★★★★★
Scenario: Current COVID-19 situation Analyze the business environment for WestJet Airlines in Canada, using Porter's Five Forces model.

Answered: 1 week ago

Question

★★★★★
Furniture City Bikes would like a firm quote of two materials; Deluxe Touring Bike (Black) and Women's Off Road Bike. GBI has determined to use SAP ERP in order to quickly react to the customer...

Answered: 1 week ago

Question

★★★★★
It is essential to understand what constitutes ethical research practices in qualitative research. After reviewing the Learn material for this module and conducting your own outside research, please...

Answered: 1 week ago

Question

★★★★★
Teamwork. After the class has been divided into at least two teams, take turns acting out, without speaking, roles presented by the teacher. (Objective 7)

Answered: 1 week ago

Question

★★★★★
List and explain the four characteristics of nonverbal messages.What nonverbal messages might students be sending if (a) they were leaning forward in their seats during the instructors lecture and...

Answered: 1 week ago

Question

★★★★★
If you are in a meeting and the speaker is saying something but his or her facial expressions and tone of voice seem to being saying something else, what would you believe, the words or the nonverbal...

Answered: 1 week ago

Previous Question Next Question