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%