babycakez2089 babycakez2089

21-12-2022
Business

Answered

Consider the following information for Watson Power Co. : Debt: 4,500 6. 5 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 102 percent of par; the bonds make semiannual payments. Common stock: 103,500 shares outstanding, selling for $60 per share; the beta is 1. 11. Preferred stock: 16,000 shares of 5 percent preferred stock outstanding, currently selling for $104 per share. Market: 8 percent market risk premium and 4. 5 percent risk-free rate. Assume the company's tax rate is 34 percent. Find the WACC. Multiple Choice 9. 24% 8. 74% 9. 64% 8. 84% 8. 91%

Answer :

Other Questions

texas inc. has 10,000 shares of 6%, $125 par cumulative preferred stock and 50,000 shares of $1 par common stock outstanding at december 31. what is the annual

determining the number of shares after a stock split. in march, stockholders of herbalife nutrition corporation approved a 2-for-1 stock split. after the split,

Stock a has an expected return of 20%; stock b has an expected return of 5%. What is the expected return on a portfolio is comprised of 67% of stock a and 33% o

assume that javier is indifferent between investing in a city of el paso bond that pays 3.45 percent interest and a corporate bond that pays 5.2 percent interes

a stock has an annual dividend of $10.00 and it is expected not to grow. it is believed thestock will sell for $100 one year from now, and an investor has a dis

the viper retires a $49.1 million bond issue when the carrying value of the bonds is $52.6 million, but the market value of the bonds is $47.3 million. the reti

on april 30, 2021, one year before maturity, pearson corporation retired $500,000 of 6% bonds payable at 102. the book value of the bonds on april 30 was $492,5

you are managing a portfolio of $1 million. your target duration is 10 years, and you can invest in two bonds, a zero-coupon bond with maturity of five years an

if the reserve ratio is 5 percent, banks do not hold excess reserves, and people do not hold currency, then when the fed purchases $351 worth of government bond

a customer buys 1,000 shares of xyzz stock in a margin account and pays the required 50% margin on settlement date. the customer requests that the broker-dealer