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Question No 28 (6 points) a. Alta Wind and Power Corporation (Alta) has 5 million common shares outstanding anstock stock is currently trading at $40
Question No 28 (6 points) a. Alta Wind and Power Corporation (Alta) has 5 million common shares outstanding anstock stock is currently trading at $40 per share. Assuming Alta issues a 25% commonosnost dividend, what will be Alta's new share price immediately after the dividend? (3 Points) b. Bandolier Bicycles ha a committed line of credit with a maximum of $450,000 and interest rate of 4% (EAR). The loan has a commitment fee of 0.3% (EAR). If the firm borrowes $375,000 at the start of the year and repays it at the end of the year, what is the total cost of the loan? (3 points) *** You must show your work to get credit
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