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Although i have answers , please complete it step wise. Question 1 Anderson has a tax rate of 35%. Calculate their weighted average cost of
Although i have answers , please complete it step wise.
Question 1 Anderson has a tax rate of 35%. Calculate their weighted average cost of capital if they have fifteen million dollars of preferred stock with an 6.6% cost of preferred stock. forty-five million dollars of equity with an 11.2% cost of equity, and forty million dollars of debt with a before-tax cost of debt of 5.4%. Correct Answer: 7.43 10.05 Question 2 If the Lewiston Company cost of capital is 5 percent, and you want to evaluate the feasibility of the following, what would be the NPV: Year 0: -444, Year 1: $200. Year 2: $100 Year 3: $379 Year 4: $50 Correct Answer: 205.71 +0.1 Question 3 Calculate the price of Chico Company's stock if it pays dividends that today are $0.94 dollars and then continue to grow at the same rate of 3.5% forever while the risk of similar firms generally command a rate of return of 7.8%. Correct Answer: 22.63 + 0.05Step by Step Solution
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