jessebear8812 jessebear8812

02-11-2022
Business

Answered

Hubbard industries is an all-equity firm whose shares have an expected return of 10%. hubbard does a leveraged recapitalization, issuing debt and repurchasing stock, until its debt-equity ratio is 0.60. due to the increased risk, shareholders now expect a return of 13%. assuming there are no taxes and what is the interest rate on the debt? give your answer in percentage and with the % sign

Answer :

Other Questions

What is the rate of return when 20 shares of Stock A, purchased for $15/share, are sold for $340? The commission on the sale is $6. Rate of Return = [?] % Give

required: the market price of a security is $74. its expected rate of return is 13%. the risk-free rate is 7%, and the market risk premium is 9%. what will the

George has a monthly income gross of 3500 and his monthly debt payments are 325 car payments 290 student loan payment 930 mortgage payment and 400 in credit car

a high price earnings ratio (pe) gives what interpretation?a.the market expects the earnings to rise in the future.b.the market feels the firm's earnings are ve

a coupon bond paying semiannual interest is reported as having an ask price of 121% of its $1,000 par value. if the last interest payment was made one month ago

when studying how some event or policy affects a market, elasticity provides information on the a. equity effects on the market by identifying the winners and l

kyoko owns and operates a store in a country experiencing a high rate of inflation. in order to prevent the value of money in her cash register from falling too

a market research firm asked a group of working parents and caregivers to discuss the problem of serving nutritious meals to their families given their time con

A corporation announces a dividend of $.10 per share. If you own 1,500 shares of stock, how much money in dividends will you receive?

help what’s the answer?