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Macro Chip Inc. has a target capital structure with 30% long-term debt, 5% short-term debt, 5% preferred stock, and 60% common equity. Before-tax cost of
- Macro Chip Inc. has a target capital structure with 30% long-term debt, 5% short-term debt, 5% preferred stock, and 60% common equity. Before-tax cost of long-term debt, r, is 10%, before-tax cost of short term debt is, rsro is 7%, cost of preferred stock, rPS is 8.25%, cost of common equity, rs is 13%. If the marginal tax rate is 25%, what is the weighted average cost of capital? A. 10.05% B. 11.5625%
c. 10.725%
D. 9.355%
2. Orange Company stock price before a stock split of 3:2 was $500. What was the price of the stock after the split? A. $757.58
B. $333.33
c. $500.00
D. $250.00
- ABM Inc. has inventory of $2,000 on its financial statements with daily cost of goods sold of $40, accounts receivable of $5,000, and cash of $100. What is the inventory conversion period?
- 125 days
- 50 days
C. 18 days
D. 183 days
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