Hi, Answer for 7-2
P = D1/(r-g) = 1.5/ (15%-7%) = $18.75Answer for 7-4
R = 5/50 = 10%Answer for 7-5http://www.box.com/s/79be791abc5a9b5c4f84Thanks.
Do you have another link i am unabke to open this link.YOU HAVE ANOITHER yuo
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9-2 After-Tax Cost of Debt
LL Incorporated’s currently outstanding 11% coupon bonds have a yield to maturity of 8%. LL believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 35%, what is LL’s after-tax cost of debt?
(9-4) Cost of Preferred Stock with Flotation Costs
Burnwood Tech plans to issue some $60 par preferred stock with a 6% dividend. A similar stock is selling on the market for $70. Burnwood must pay flotation costs of 5% of the issue price. What is the cost of the preferred stock?
(9-5) Cost of Equity: DCF
Summerdahl Resort’s common stock is currently trading at $36 a share. The stock is expected to pay a dividend of $3.00 a share at the end of the year (D1 = $3.00), and the dividend is expected to grow at a constant rate of 5% a year. What is its cost of common equity?
(9-6) Cost of Equity: CAPM
Booher Book Stores has a beta of 0.8. The yield on a 3-month T-bill is 4% and the yield on a 10-year T-bond is 6%. The market risk premium is 5.5%, and the return on an average stock in the market last year was 15%. What is the estimated cost of common equity using the CAPM?
Shi Importer’s balance sheet shows $300 million in debt, $50 million in preferred stock, and $250 million in total common equity. Shi’s tax rate is 40%, rd = 6%, rps = 5.8%, and rs = 12%. If Shi has a target capital structure of 30% debt, 5% preferred stock, and 65% common stock, what is its WACC?
This is another set of homeworkj assignment please show all workingshi
still having trouble to open linl
Did you copy the url to your address bar? You should be linked to the file and then you can download it.
Also, please accept my answer first before I answer your second set of problems.
yes I did get to open it with Box
I just submitted another part