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charle [14.2K]
3 years ago
15

You are given the following information for Lightning Power Co. Assume the company’s tax rate is 22 percent. Debt: 12,000 6.1 pe

rcent coupon bonds outstanding, $1,000 par value, 27 years to maturity, selling for 109 percent of par; the bonds make semiannual payments. Common stock: 450,000 shares outstanding, selling for $63 per share; beta is 1.14. Preferred stock: 19,500 shares of 3.9 percent preferred stock outstanding, currently selling for $84 per share. The par value is $100 per share. Market: 5 percent market risk premium and 4.9 percent risk-free rate. What is the company's WACC?

Business
1 answer:
AleksandrR [38]3 years ago
8 0

Answer

The answer and procedures of the exercise are attached in the following archives.

Step-by-step explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

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In the context of the internal and external forces that affect business, which of the following is a difference between stable e
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Answer:

d. In stable environments, the rate of environmental change is slow, whereas in dynamic environments, the rate of environmental change is fast.

Explanation:

In context of analyzing business environment, there are two forms of rate of change: stable and dynamic.

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All options  are not fundamentally wrong in the context of the difference between a stable and dynamic environment.

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Pollution Busters Inc. is considering a purchase of 10 additional carbon sequesters for $100,000 apiece. The sequesters last for
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Raven Farms raises a substantial number of bees and uses the honey to produce its own skin healing cream. Raven Farms is situate
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Answer:

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