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Will rate all answers, thank you so much!! 10. Your firm has just purchased a depreciable asset having a depreciable value of $100,000. The MACRS
Will rate all answers, thank you so much!!
10. Your firm has just purchased a depreciable asset having a depreciable value of $100,000. The MACRS percentages for this particular asset are provided in a table on the formula sheet. After the end of the second year, the assets net book value for tax purposes will be: A. B. C. D. $22,000 $45,000 $55,000 $78,000 Use the information below to answer questions 11 and 12: Suppose that common stock in General Electric currently sells for $75 per share. If the firm were to issue new shares, it believes that it would need to discount the price to $72 per share, and that it would incur additional flotation costs of $1. Assume for the sake of simplicity that General Electric pays dividends on its common stock only once per year. The dividend amount has been growing at an average annual rate of 4%, and the firm just paid a dividend of $3.75. 11. What is the cost of retained earnings? A. B. C. D. E. 9.00% 9.20% 9.28% 9.34% 9.49% 12. What is the cost of a new issue of common stock? A. B. C. D. E. 9.00% 9.20% 9.28% 9.34% 9.49%Step by Step Solution
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