Entries by mary WAMBUGU

Sweet Treats common stock is currently priced at $19.74 a share. The company just paid $1.15 per share as its annual dividend. The dividends have been increasing by 2.5 percent annually and are expected to continue doing the same. What is this firm’s cost of equity?

August 26, 2019 in /by

Sweet Treats common stock is currently priced at $19.74 a share. The company just paid $1.15 per share as its annual dividend. The dividends have been increasing by 2.5 percent annually and are expected to continue doing the same. What is this firm’s cost of equity?   Looking for a Similar Assignment? Order now and […]

 

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Chris’ Chai Tea Brewers has a debt-equity ratio of 0.74. The firm is analyzing a new project, which requires an initial cash outlay of $343,500 for equipment. The flotation cost is 8.6 percent for equity and 4.4 percent for debt. What is the initial cost of the project including the flotation costs?

August 26, 2019 in /by

Chris’ Chai Tea Brewers has a debt-equity ratio of 0.74. The firm is analyzing a new project, which requires an initial cash outlay of $343,500 for equipment. The flotation cost is 8.6 percent for equity and 4.4 percent for debt. What is the initial cost of the project including the flotation costs?   Looking for […]

 

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On the other hand, the point (x1 15, x2 70) is not in the feasible region, because even though x1 15 and x2 70 satisfy (2), (4), (5), and (6), they fail to satisfy

August 26, 2019 in /by

On the other hand, the point (x1 15, x2 70) is not in the feasible region, because even though x1 15 and x2 70 satisfy (2), (4), (5), and (6), they fail to satisfy (3): 15 70 is not less than or equal to 80. Any point that is not in an LP’s feasible region […]

 

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Lester Specialty Products currently has 350,000 shares of common stock outstanding at a market price of $30 a share. Lester stock pays an annual dividend, which is expected to be $1.65 per share next year and the dividend is expected to continue to grow at the rate of 2 percent annually. Lester also has 8,500 bonds outstanding with a face value of $1,000 per bond. The bonds carry a 5.5 percent coupon, pay interest semiannually, and mature in 7.5 years. The bonds are selling at 101 percent of face value. The company’s tax rate is 32 percent. What is the firm’s weighted average cost of capital?

August 26, 2019 in /by

Lester Specialty Products currently has 350,000 shares of common stock outstanding at a market price of $30 a share. Lester stock pays an annual dividend, which is expected to be $1.65 per share next year and the dividend is expected to continue to grow at the rate of 2 percent annually.  Lester also has 8,500 […]

 

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