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Will rate all answers, thank you so much!! 4. Advantages of the payback period include all of the following except: A Uses cash flows, rather
Will rate all answers, thank you so much!!
4. Advantages of the payback period include all of the following except: A Uses cash flows, rather than just accounting profits; B. Partially takes the concept of time value of money into account, by recognizing that the timing of cash flows is important; C. Can be used to evaluate directly whether a project will meet the goal of maximizing the wealth of the owner(s)/shareholders of the business; D. Relatively simple to use; E. "A," "B," "C," and "D" are all advantages of this method. 5. Carden, Inc., has a target capital structure of 60% debt and 40% common equity, with no preferred stock. The company estimates its pre-tax cost of debt to be 8%, and its tax rate is 25%. If the company's weighted average cost of capital is 10%, what is Carden, Inc's cost of equity? A. B. C. D. 7.60% 9.20% 11.00% 16.00% 6. Consider a firm having a target capital structure consisting of 50% long-term debt, 20% preferred stock, and 30% common stock. Find the weighted average cost of capital, assuming that the costs of the various sources of funding are as follows: the after-tax cost of long-term debt is 4%, the cost of preferred stock is 12%, and the cost of common stock is 15%. A. B. C. D. E. 8.70% 8.90% 9.00% 9.20% 9.40%Step by Step Solution
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