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blsea [12.9K]
3 years ago
10

MV Corporation has debt with market value of ​million, common equity with a book value of ​million, and preferred stock worth mi

llion outstanding. Its common equity trades at per​ share, and the firm has million shares outstanding. What weights should MV Corporation use in its​ WACC?
Business
1 answer:
kirza4 [7]3 years ago
6 0

Answer:

The Weighted Average cost of capital measures the cost to the company of its current capital structure by using the weights of the various capital measures. WACC usually uses market values so;

Total amount = Debt + Preferred stock + common equity

= 100 million + 20 million + ( 50 * 6 million)

= $420 million

<u>Proportions.</u>

Debt

= 100/420

= 24%

Preferred Stock<u> </u>

= 20/420

= 5%

Common Equity

= 300/420

= 71%

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Tore Company's records reveal the following information regarding its inventory. Beginning inventory was $100,000 at cost and 16
vodka [1.7K]

Answer:

$150,000

Explanation:

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Beginning Inventory = $160,000 in retail

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So, End Inventory = 160,000+500,000+10,000-500,000

End Inventory = $150,000

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2 years ago
What are various options to regulate monopolies in the United States? <br><br> I’ll give brainliest
Darya [45]

Answer:

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2 years ago
Read 2 more answers
A share of stock is now selling for $115. It will pay a dividend of $9 per share at the end of the year. Its beta is 1. What do
natali 33 [55]

Answer:

The expected price of the stock is $122.03

Explanation:

To calculate the expected price of the stock at the end of the year or at Year 1, we first need to determine the required rate of return on the stock. We will use the CAPM equation to calculate the required rate of return.

The required rate of return is calculated as,

r = rRF + Beta * (rM - rRF)

Where,

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r = 0.05 + 1 * (0.14 - 0.05)

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We already have the price of the stock today, the D1 and the required rate of return. Using the constant dividend growth model of DDM, we calculate the growth rate in dividends to be,

P0 = D1 / (r - g)

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115 * (0.14 - g)  =  9

16.1 - 115g  =  9

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Using the same formula and replacing D1 with D2, we can calculate the price of the stock at the end of the year or at start of Year 1.

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3 years ago
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disa [49]

Answer:

17%

Explanation:

This can be calculated using the Capital Asset Pricing Model which is given as under:

Required Return = Rf + Beta factor * (Market Risk Premium)

By putting the values, we have:

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2 years ago
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What does each employer that has employees with occupational exposure to human blood or opim need to have?.
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Answer:

Each employer who has an employee (s) with occupational exposure to blood or OPIM is required to document an exposure determination. The exposure determination is made without regard to the use of personal protective equipment since employees are considered exposed even if they wear personal protective equipment.

Explanation:

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