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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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Give olaf a plan of action for the future that attacks the problem. be specific and provide examples that relate to wireless tel
bulgar [2K]
The best plan of activity for Olaf is devised an arrangement by 
1. getting a nitty-gritty information of the venture. 
2. Dissecting the current assetsFinalizing a group 
3. Performing venture review 
4. Actualizing and keeping a nearby beware of the task turning points and due dates.
4 0
3 years ago
On the basis of the research it has gathered on consumer perceptions, the tests it has conducted, and competitive considerations
Elan Coil [88]

Answer:

1) the product launch.

Explanation:

As the product in consideration is new, and that the company performs the analysis of customer demands and needs for the product to be introduced, also the company defines the target market for its product, this conclusively reflects that the company wants to launch a new product.

Since it is a preliminary activity basically analyzing market before launch of product, there are no results therefore there is no evaluation of results.

Further there is a market testing, not for the entire company products, but only for the new product thus, it can not be termed as pre-market demonstrations.

6 0
2 years ago
If a payback period for a project is greater than its expected useful life, the ___________.
just olya [345]

Answer: d. Entire initial investment will not be recovered.

Explanation:

The Payback period by definition is the amount of time it will take a Project to recover the initial investment into it. For example, if a project had an investment of $20 million and made $5 million every year, the Payback period would be 4 years.

Now, if the amount of time it will take to recover an investment is longer than the expected amount of time the project will run (expected useful life) then logically speaking that would mean that the Investment would not be entirely recovered because the project will be done before it can pay off the investment hence Option D is correct.

4 0
2 years ago
Where's the best place for a 17 year old to work at.<br> ps. im 17
mars1129 [50]

Finding the right place to be a waitress at could be really good :) But if you're not too inclined to rely mostly on tips here's a list of good places that have some benefits (free food, flexible schedule, etc.)


  1. McDonalds
  2. Lifeguard
  3. Babysitter
  4. Chipotle
  5. Gas stations (I know someone who works there who says they offer a very flexible schedule)
  6. Gap
  7. Subway
  8. Sonic
  9. Little Cesar's
  10. Rue 21 (or other stores similar to that)
  11. Starbucks (they offer amazing benefits!)
  12. Target
  13. Apple support (I believe they send you a computer and all to be able to work and you also get discounts)

You can find plenty more online. Keep in mind that at 17, you can practically work anywhere! Good luck & hopefully this helped!! :))

4 0
3 years ago
Read 2 more answers
Willow Corp. (a C corporation) reported taxable income before the net operating loss deduction (NOL) in the amount of $100,000 i
egoroff_w [7]

Willow Corp NOL carryover to 2021 (year 4) is $10,000

<h3>How to calculate Willow Corp NOL carryover to year 4</h3>

  • Year 3 income = $100,000

Carry forward losses:

  • Year 1 = $50,000
  • Year 2 = $40,000

Total carry forward losses = $50,000 + $40,000

= $90,000

Eligible carry forward loss = $100,000 × 80%

= $100,000 × 0.8

= $80,000

Willow Corp tax liability in year 3 = $100,000 - $80,000 × 21%

= $20,000 × 21%

= 20,000 × 0.21

= $4,200

Willow Corp NOL carryover to year 4 = Total carry forward losses - Eligible carry forward loss

= $90,000 - $80,000

= $10,000

Learn more about tax:

brainly.com/question/25504231

3 0
2 years ago
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