Sentry Manufacturing paid a dividend yesterday of $5 per share. The dividend is expected to grow at a constant rate of 8 per year. The price Sentry Manufacturing' stock today is $29 per share. If Sentry Manufacturing decides to issue new common stock costs will equal $2.50 per share. Sentry Manufacturing marginal tax rate is 35%. Based on the above information, the cost of new common stock is 28.38%. 24.12%. 26.62%. 31.40%. Baker Corp. is required by a debt agreement to maintain a current ratio of at least 25, and Baker's current ratio now is 3. Baker wants to purchase additional inventory for its upcoming Christmas season, and will pay for the inventory with short-term debt. How much inventory can Baker purchase without violating its debt agreement if their total current assets equal $15 million? 50.50 million 51.67 million 54.50 million $6.00 million Baxter Inc. has a target capital structure of $30 million debt, $15 million preferred and $55 million common equity. The company's after-tax cost of debt is 7% its cost of preferred stock is 11%, its cost of retained earnings is 15% and its of new stock is company stock is 16% The company stock has a beta of 1.5 and the company's marginal tax rate is 35%. What is the company's weighted average cost of capital retained earnings are used to fund the common equity portion? 11.20% 12.00% 13.80% 14.45% The net present value method is consistent with the goal of shareholder wealth maximization. recognizes the time value of money. uses all of a project's cash flows. all of the above. When comparing inventory turnover ratios, other things being equal a lower inventory turnover is preferred in order to keep inventory costs low. a higher inventory turnover is preferred to improve liquidity. higher inventory turnover results from old or obsolete inventory increasing the inventory balance on the balance sheet. higher inventory turnover results from an increase in the selling price of the product