Answer:
100%
Explanation:
Stockholders of Dog's R Us Pet Supply expect a 12% rate of return on their stock. Management has consistently been generating a ROE of 15% over the last 5 years but now believes that ROE will be 12% for the next five years. Given this the firm's optimal dividend payout ratio is now 100%
Answer:
$70,000
Explanation:
In this question, we are asked to calculate the amount credited to common stock warrants at issuance of the preferred stock.
A mathematical approach is needed to compute this.
Mathematically the amount credited to common stock warrants at issuance is calculated by multiplying the selling price of a warrant by the number of warrants.
The selling price of a warrant according to the question is $7. The number of shares issued is 10,000.
The amount credited to common stock warrants at issuance = $7 * 10,000 = $70,000
Answer:
aftertax cost of debt =5.63%
Explanation:
fisrt we need to know the formula for the yield to maturity
Yield to maturity (YTM)
YTM= ( I+(F-P)/n ) / ( 0.6P +0.4F)
YTM= (9 + ( 100-102.3) / 11 ) / (0.6*102.3 + 0.4*100)
YTM= 0.0867
YTM= 8.67%
after taxes we have...
8.67% (1-0.35%)
=0.0563
=5.63%
This question is a little but more difficult to solve, as it depends on the situation. For certain banks it is not worth it due to rates that must be payed, but in your case here I believe that it would be TRUE.
I did honk b because that is the answer the I had gotten
