Answer:
a)
Cost of debt (after tax) = 5.4%
Cost of preferred stock () = 10.53%
Cost of common stock () = 16.18%
b)
WACC = 14%
c)
project 1 and project 2
Explanation:
Given that:
Debt rate () = 9% = 0.09
Tax rate (T) = 40% = 0.4
Dividend per share () = $6
Price per share () = $57
Common stock price ()= $39
Expected dividend () = $4.75
Growth rate (g) = 4% = 0.04
The target capital structure consists of 75% common stock (), 15% debt (), and 10% preferred stock ()
a)
Cost of debt (after tax) =`
Cost of debt (after tax) = 5.4%
Cost of preferred stock () = = 10.53%
= 10.53%
Cost of common stock () =
= 16.18%
b)
WACC = 14%
c) Only projects with expected returns that exceed WACC will be accepted. Therefore only project 1 and project 2 would be accepted
The answer is b many people want this product and havent purchased it yet
Answer:
The correct answer is c. poorly performing firms.
Explanation:
Corporate governance is the set of rules, principles and procedures that regulate the structure and operation of the governing bodies of a company. Specifically, it establishes the relationships between the board of directors, the board of directors, the shareholders and the rest of the interested parties, and stipulates the rules governing the decision-making process on the company for the generation of value.
In recent years, and more specifically following the onset of the financial crisis, the international community has understood the importance of listed companies being managed in an adequate and transparent manner. The good governance of companies is the basis for the functioning of markets, as it favors credibility, stability and contributes to boosting growth and wealth generation.
The weakness shown by corporate governments of large organizations in the past has multiplied the demands for transparency, truthfulness, good practices and responsible business behavior on the part of investors, consumers and society in general, which not only pay attention anymore. to financial indicators, but they also want to know how those results have been achieved.
Answer:
they promote there company by advertising the product making commercial