Question
Hello these are Accounting questions please answer the questuins and show me your work and how you get the answer as soon as possible Q6)
Hello these are Accounting questions
please answer the questuins and show me your work and how you get the answer as soon as possible
Q6)
The following data pertains to Radek Corp., a manufacturer of office supplies. Dollar amounts in thousands.
Total assets | $8,731 |
Interest-bearing debt | $4,239 |
Average borrowing rate for debt | 10.0% |
Common equity: |
|
Book value | $3,130 |
Market value | $16,284 |
Marginal income tax rate | 35% |
Market equity beta | 1.33 |
Determine the weight on debt capital that should be used to calculate Radek's weighted-average cost of capital.
Select one:
A. 20.65%
B. 52.54%
C. 26.03%
D. 57.52%
Q7)
The following data pertains to Radek Corp., a manufacturer of office supplies. Dollar amounts in thousands.
Total assets | $8,731 |
Interest-bearing debt | $4,239 |
Average borrowing rate for debt | 10.0% |
Common equity: |
|
Book value | $3,130 |
Market value | $16,284 |
Marginal income tax rate | 35% |
Market equity beta | 1.33 |
Determine the weight on equity capital that should be used to calculate Radek's weighted-average cost of capital.
Select one:
A. 42.48%
B. 73.97%
C. 47.46%
D. 79.35%
Q8)
The following data pertains to Radek Corp., a manufacturer of office supplies. Dollar amounts in thousands.
Total assets | $8,731 |
Interest-bearing debt | $4,239 |
Average borrowing rate for debt | 10.0% |
Common equity: |
|
Book value | $3,130 |
Market value | $16,284 |
Marginal income tax rate | 35% |
Market equity beta | 1.33 |
Calculate Radek's weighted-average cost of capital.
Select one:
A. 11.89%
B. 12.48%
C. 13.25%
D. 11.50%
Q9)
Wesley Corporation currently pays a $1.55 dividend and its current stock price is $53.50. Assuming the companys cost of equity capital is 6% use the dividend discount valuation model to estimate the companys growth rate.
Select one:
A. 1.7%
B. 2.4%
C. 6.0%
D. 3.1%
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