How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Manal Elkhoshkhany Your Own Question

Manal Elkhoshkhany
Manal Elkhoshkhany, Tutor
Category: Finance
Satisfied Customers: 9440
Experience:  More than 5000 online tutoring sessions.
Type Your Finance Question Here...
Manal Elkhoshkhany is online now
A new question is answered every 9 seconds

Compute the cost of capital for the firm for the following: A

Resolved Question:

Compute the cost of capital for the firm for the following:
A A bond that has a $1,000 par value (face value) and a contract or coupon interest rate of 11.4%. The bonds have a current value of $1,121 and will mature in 10 years. The firm's marginal tax rate is 34%.

B.A new common stock issue that paid a $1.78 dividend last year. The firm's dividends are expected to continue to grow at 6.5% per year forever. The price of the firms common stock is now $27.59

C. A preferred stock paying a 8.5% dividend on a $133 par value

D. A bond selling to yield 11.9% where the firm's tax rate is 34%
Submitted: 2 years ago.
Category: Finance
Expert:  Manal Elkhoshkhany replied 2 years ago.

Hello

 

Please post the full question as it appears in your book so that I can help

 

Regards,

Customer: replied 2 years ago.
Compute the cost of capital for the firm for the following:
A A bond that has a $1,000 par value (face value) and a contract or coupon interest rate of 11.4%. The bonds have a current value of $1,121 and will mature in 10 years. The firm's marginal tax rate is 34%.

The Cost of capital from this bond dent___%

B.A new common stock issue that paid a $1.78 dividend last year. The firm's dividends are expected to continue to grow at 6.5% per year forever. The price of the firms common stock is now $27.59

the cost of capital from common equity----%

C. A preferred stock paying a 8.5% dividend on a $133 par value

the cost of preferred stock ---%

D. A bond selling to yield 11.9% where the firm's tax rate is 34%

the cost of capital from this bond debt--%
Expert:  Manal Elkhoshkhany replied 2 years ago.
What is the price of the preferred stock? There is missing data :)
Customer: replied 2 years ago.
this is all the information that it gives me and its looking for %
Expert:  Manal Elkhoshkhany replied 2 years ago.

I believe there is missing information, I will post the solution according to the given data, but I recommend that you email the instructor and tell him that the Current Price of Preferred Stock is not given. This is because if Preferred Stock is currently selling at par, then the cost of preferred stock is already given as 8.5%

 

Please advise the name of the book you are using: Title, author's name, and edition (is the question from the book?)

Expert:  Manal Elkhoshkhany replied 2 years ago.

Please click on the following link for the solution:

 

http://www.box.com/s/faab30e964af94bbeaac

 

 

P.S. If you like my services, please feel free to direct your future posts to me specifically by typing "For BusinessTutor" at the beginning of your post. Should you choose to do this, please try to allow me 48 hours before the deadline. If you need to meet me online for a timed assignment, please advise me of the date and time (EST) you want me to meet you here and I will. Please make sure you take the length (and number) of the questions into consideration when making your offer to avoid delays in providing solutions.

 

Thank you

Manal Elkhoshkhany, Tutor
Category: Finance
Satisfied Customers: 9440
Experience: More than 5000 online tutoring sessions.
Manal Elkhoshkhany and 2 other Finance Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Rakhi Vasavada

    Financial and Legal Consultant

    Satisfied Customers:

    2073
    Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
< Last | Next >
  • http://ww2.justanswer.com/uploads/RA/rakhi.v/2012-7-3_14374_RakhiVasavadaL.64x64.jpeg Rakhi Vasavada's Avatar

    Rakhi Vasavada

    Financial and Legal Consultant

    Satisfied Customers:

    2073
    Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
  • http://ww2.justanswer.com/uploads/BU/BusinessTutor/2012-2-2_115741_Kouki2.64x64.jpg Manal Elkhoshkhany's Avatar

    Manal Elkhoshkhany

    Tutor

    Satisfied Customers:

    1890
    More than 5000 online tutoring sessions.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    1755
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JK/jkcpa/2011-1-16_182614_jkcpa.64x64.jpg JKCPA's Avatar

    JKCPA

    CPA

    Satisfied Customers:

    838
    Bachelors degree and CPA with Accounting experience.
  • http://ww2.justanswer.com/uploads/starside8/2010-2-16_55433_DSCN1175.JPG Eric's Avatar

    Eric

    Financial Manager

    Satisfied Customers:

    558
    Loan servicing, counseling and real estate expert. Foreclosure Expert and Financial Planner.
  • http://ww2.justanswer.com/uploads/FA/fastfile/2011-12-15_23139_Klein2011small.64x64.jpg R. Klein, EA's Avatar

    R. Klein, EA

    Accountant

    Satisfied Customers:

    397
    Intuit Ask a Tax Expert. QuickBooks Certified Pro Advisor (all editions)
  • http://ww2.justanswer.com/uploads/dkaplun/2009-05-17_173121_headshot_1_2.jpg Dimitry K., Esq.'s Avatar

    Dimitry K., Esq.

    Attorney

    Satisfied Customers:

    324
    NASD Licensed Rep, 1997-2001, Business Attorney