Question
Which of the following assets is NOT the operating assets A. Accounts Receivable B. Marketable Securities C. Net Fixed Assets D. Inventories To help finance
Which of the following assets is NOT the operating assets
A. Accounts Receivable B. Marketable Securities C. Net Fixed Assets D. Inventories
To help finance a major expansion, a company sold a noncallable bond several years ago that now has 15 years to maturity. This bond has a 5% annual coupon, paid semiannually, it sells at a price of $985, and it has a par value of $1,000. If the companys tax rate is 21%, what component cost of debt should be used in the WACC calculation?
A.4.06
B.9.41
C.5.14
D.2.57
You were hired as a consultant to a company, whose target capital structure is 40% debt, 10% preferred, and 50% common equity. The after-tax cost of debt is 6.0%, the cost of preferred is 7.5%, and the cost of retained earnings is 13.25%. The firm will not be issuing any new stock. What is its WACC?
A. 9.48%
B. 9.78%
C. 10.07%
D. 10.37%
A Stock is selling for $50 in the market. The required rate of return is 9%. The most recent dividend pays is D0=$3 and dividends are expected to grow at a constant rate g. What is the capital gain for this stock?
A. 2.83 %
B.4.19%
C.4.81%
D.9.0%
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