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Please answer ALL questions as soon as possible, thank you! for finance A firm has determined its optimal capital structure is as follows: Debt: The
Please answer ALL questions as soon as possible, thank you!
for finance
A firm has determined its optimal capital structure is as follows: Debt: The firm can sell a 12 -year, $1,000 par value, 7 percent bond for $960. A flotation cost of 2 percent of the face value would be required in addition to the discount of $40. Preferred Stock: The firm can issue preferred stock at $75 per share par value. The stock will pay a $10 annual dividend. The cost of issuing and selling the stock is $3 per share. Common Stock: A firm's common stock is currently selling for $18 per share. The dividend expected to be paid at the end of the coming year is $1.74. Its dividend payments have been growing at a constant rate for the last four years. Four years ago, the dividend was $1.50. It is expected that to sell, a new cornmon stock issue must be underpriced $1 per share in flotation costs. Additionally, the firm's marginal tax rate is 40 percent. The fim's after-tax cost of debt is 3.25 percent 4.67 percens 8 percent 8.13 percen A firm has determined its optimal capital structure is as followrs: Debt: The firm can sell a 12-year, $1,000 par value, 7 percent bond for $960. A flotation cost of 2 percent of the face value would be required in addition to the discount of 540 . Preferred Stock: The firm can issue preferred stock at $75 per share par value. The stock will pay a $10 annual dividend. The cost of issuing and selling the stock is $3 per share: Common Stock: A firm's common stock is currently selling for $18 per share. The dividend expected to be paid at the end of the coming year is $1.74. its dividend payments have been growing at a constant rate for the last four years. Four years ago; the dividend was $1.50. It is expected that to sell, a new common stock issue must be underpriced $1 per share in flotation costs. Additionally, the firm's marginal tax rate is 40 percent. The firm's cost of preferred stock is 7.2 percent 8.3 percent 13.3 percent 139 peicen A firm has determined its optimal capital structure is as follows: Debt: The firm can sell a 12-year, 51,000 par value, 7 percent bond for $960. Aflotation cost of 2 percent of the face value would be required in addition to the discount of $40. Preferred Stock: The firm can issue preferred stock at $75 per share par value. The stock mill pay a $10 annual dividend. The cost of issuing and selling the stock is $3 per share. Common Stock: A firm's common stock is currently selling for \$18 per share. The dividend expected to be paid at the end of the coming year is $1.74. Its dividend payments have been growing at a constant rate for the last four years. Four years ago, the dividend was 51.50 . It is expected that to sell, a-new common stock issue must be underpriced $1 per share in flotation costs: Additionally, the firm's marginal tax tate is 40 percent. The fimn's cost of a new issue of common stock is 7.00 percent 9.0geccen 142 percent 13.4 percem A firm has determined its optimal capital structure is as follows: Debt: The firn can sell a 12 -year, $1,000 par value, 7 percent bond tor 5960. A fotation cost of 2 peroent of the face value would be required in addion to the discount of 340. Preferred Stock: The firm can issue preferred stock at 575 per share par value. The stock wil pay a $10 annual dividend. The cost of issuing and selling the stock is $3 per share. Cemmon Stock: A firm's common stock is currently selling for 318 per share. The dividend expected to be pad at the end of the coming yoar is $1.74. Its dividend payments have been growing at a constant rate for the last four years. Four years ago, the dividend was $1.50. It is expected that to sell, a new common stock issue must be underpriced st per share in flotation costs. Addeonally, the firmis marginal tax rate in 40 percent. The firm's cost of retained earnings is 202 pertert 14.9 pertere 14. 1 persent 13.6 percea Consider the following data for Question 35: The comparry has compied data regarding the market value and cost of sources of capita - Market price per share of commen stock is $50 - Market value of longterm debt is $980 per bond. General Talc Mines' weighted average cost of capital is 11.7 peicen 11 s. peicers 153 perient 17.5 peicent Step by Step Solution
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