Entries by mary WAMBUGU

Consider a company financed with 0.6 equity, 0.1 preferred stock, and the remaining debt subject to a corporate tax rate 0.5 If the required rate of return on the debt is 0.06,

Consider a company financed with 0.6 equity, 0.1 preferred stock, and the remaining debt subject to a corporate tax rate 0.5 If the required rate of return on the debt is 0.06, on the preferred stock is 0.10 and on the common stock is 0.09, what is the working average cost of capital for this […]

 

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A stock is trading for 34, and just paid a dividend of 1.2 which is expected to grow at a fraction 0.05 per year.

A stock is trading for 34, and just paid a dividend of 1.2 which is expected to grow at a fraction 0.05 per year. If Goldman Sacs charges a fraction 0.18 as a flotation cost, what is the required rate of return on a new stock issue?   Looking for a Similar Assignment? Order now and […]

 

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A company with a WACC of 10% is considering investing in new projects. Which of the following projects should the company accept?

A company with a WACC of 10% is considering investing in new projects. Which of the following projects should the company accept? Question 2 options:  Project with IRR of 10%. Project with an IRR of 9%. Project with an IRR of 12%. Project with IRR of 11%   Looking for a Similar Assignment? Order now and […]

 

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What is the internal rate of return of the following set of cash flows? CO = -300 C01 = 200

What is the internal rate of return of the following set of cash flows?CO = -300C01 = 200C02 = 300 C03 = 50   Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code “Newclient”

 

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