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xz_007 [3.2K]
3 years ago
11

Lippo In. reports the following capital structure on its balance sheet: Debt $ 20 m, Preferred stock $ 10 m, Common stock $ 20 m

The debt has 10 years to maturity, carries a coupon rate of 6%, and sells at 86.58% of face value. The preferred shares have a face value of $100 each and pay an annual dividend of $11. They sell at $105 each. There are 1 million shares of common stock with a market price of $30 each. The stock has a beta of 1.2. The risk-free rate is 5%. Assume that the risk premium on the market portfolio is 6%. The tax rate is 40%. (Assume that flotation costs are negligible and bond coupons are paid annually.)
a. What is the after-tax cost of debt, preferred stock and common stock?
b. What is the weighted average cost of capital for the firm, if the current capital structure based on market values is the optimal capital structure?
Business
1 answer:
wel3 years ago
3 0

Answer:

hfsukfsutsitsufsutsitsuts

Explanation:

yrautstis

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14.55

Explanation:

i think this is right and I hope that it helps:)

4 0
3 years ago
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If you wish to have $60,000 in 8 years, how much do you need to deposit in the bank today if the account pays an interest rate o
liberstina [14]

Answer:

PV= $30,111.98

Explanation:

Giving the following information:

Future value= $60,000

Number of periods= 8

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<u>To calculate the initial investment, we need to use the following formula:</u>

FV= PV*(1+i)^n

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5 0
4 years ago
Manual docket systems for law offices may include?
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Docket System – A system used by attorneys to alert them to deadlines and statutes of limitations for filing certain actions, motions, and cases. The use of a record-keeping system is an important tool in preventing professional claims against attorneys.

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7 0
2 years ago
An online sales order processing system most likely would have an advantage over a batch sales order processing system by: Recor
tensa zangetsu [6.8K]

Answer:

The answer is: Enabling shipment of customer orders to be initiated as soon as the orders are received.

Explanation:

In a batch sales ordering process, your sales team gathers information about sales throughout an specific period of time and then enters it into the system all at once. While an online sales order processing system processes each sales transactions into your system immediately.

Imagine you want to buy a set of chairs and the salesman takes your order at 9 AM. If the salesman uses a batch sales ordering process, he might have to wait until midday to place your sales order along with all the other sales he did in the morning. If he was using an online sales order processing system, your sale would have been processed immediately without any other delay. That obviously saves time.    

4 0
3 years ago
The annual global growth rate of the human population peaked in the ________ and has been declining ever since.
jenyasd209 [6]

Answer:

declining since 1962 and 1963, when it was 2.20% per annum

8 0
3 years ago
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