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marta [7]
3 years ago
9

Bacchus Enterprises has $12B in book value of common stock selling at a book to market rate of 1.35 and a beta of 1.5. The combi

ned preferred stock is valued at $8.5B with a beta of 1.23. The restructured debt has a book value of $4.8B in book value and has a coupon of 6%, maturing in 9 years, and selling at 102.5%. The market is doing quite well and is returning 14% with a risk free asset returning 4%. What is the Cost of Preferred Stock
Business
1 answer:
goldfiish [28.3K]3 years ago
7 0

Answer: 16.3%

Explanation:

Given the details in the question, the cost of preferred capital can be calculated using the CAPM method.

Cost of preferred stock using the Capital Asset Pricing Model is:

= Risk free rate + Beta * ( Market return - Risk free rate)

= 4% + 1.23 * (14% - 4%)

= 16.3%

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SashulF [63]

Answer:

A. high school diploma

Explanation:

please put me in brainlist

4 0
3 years ago
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Justin, a real estate salesperson, would like to offer his colleague a referral fee for referring him a new client. before offer
MrMuchimi
Justin<span> obtained informed consent from the client in order to follow the full disclosure policy. In this policy, referral fee can only be given with the informed consent of the client (this is the party being referred by the </span>referrer<span>). The informed consent should be in writing in order to avoid complications in the future.</span>
8 0
3 years ago
Your company must reduce its electronic waste by 10 percent in the next year. What can the company do to meet this goals?.
julsineya [31]

Based on the information given what the company can do to meet this goals is to: Make use of sleep modes and other power management features for computers and other electronic devices.

<h3>What is sleep modes?</h3>

Sleep modes can be defined as the process of putting computer and devices in standby mode when they are not in use or when inactive.

Based on the information given making use of sleep modes and power management features will help to reduce electronic power consumption which inturn will make it possible for the company to achieve their goals of reducing electronic waste by 10 percent in the next year.

Inconclusion what the company can do to meet this goals is to: Make use of sleep modes and other power management features for computers and other electronic devices.

Learn more about sleep modes here:brainly.com/question/15500797

4 0
2 years ago
Which is NOT a career in plant systems?<br>A. arborist<br>B. landscaper<br>C. botanist<br>D. farmer​
marishachu [46]

Answer:

I believe the answer in B. landscaper

Explanation:

It can't be A or C, and B makes more sense than D. If it for some reason isn't B, It should be D.

7 0
3 years ago
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An important qualitative factor to consider regarding a special order is the:
xeze [42]

Answer:

Correct answer is (d)

Explanation:

effect the sale of special-order units will have on existing customers

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