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Answer with solution pls. Numbers 16,17 and 18. Lacking of answer for numbers 16 17 18 will be given down vote Last year Gatcha, Inc.
Answer with solution pls.
Numbers 16,17 and 18. Lacking of answer for numbers 16 17 18 will be given down vote
Last year Gatcha, Inc. Ahd P50 million in total assets. Management desires to increase its plant and equipment during the coming year by P12 million. The company plans to finance 40% of the expansion with debt and the remaining 60% with equity capital. Bond financing will be at 9% coupon rate and will be sold at par value. Common stock is currently selling at P5o per share, and flotation costs for new common will amount to P5 per share. The expected dividend next year for Gatcha is P2.50. Furthermore, dividends are expected to grow at 6% rate far into the future. Corporate tax is 25%. Internal funding available from additions to retained earnings is P4 millionStep by Step Solution
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