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linda_us
linda_us, Master's Degree
Category: Single Problem
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Experience:  A tutor for Business, Finance, Accounts and other related topics.
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Coogly Company is attempting to identify its weighted

Customer Question

Coogly Company is attempting to identify its weighted average cost of capital for the coming year and has hired you to answer some questions they have about the process. They have asked you to present this information in a PowerPoint presentation to the company’s management team. The company would like for you to keep your presentation to approximately 10 slides and use the notes section in PowerPoint to clarify your point. Your presentation should address the following questions and offer a final recommendation to Coogly. Make sure you support your answers and clearly explain the advantages and disadvantages of utilizing the weighted average cost of capital methodology. Include at least one graph or chart in your presentation.Company InformationThe capital structure for the firm will be maintained and is now 10% preferred stock, 30% debt, and 60% new common stock. No retained earnings are available. The marginal tax rate for the firm is 40%.Coogly has outstanding preferred stock That pays a dividend of $4 per share and sells for $82 per share, with a floatation cost of $6 per share. What is the component cost for Coogly's preferred stock? What are the advantages and disadvantages of using preferred stock in the capital structure?
If the company issues new common stock, it will sell for $50 per share with a floatation cost of $9 per share. The last dividend paid was $3.80 and this dividend is expected to grow at a rate of 7% for the foreseeable future. What is the cost of new equity to the firm? What are the advantages and disadvantages of issuing new equity in the capital structure?
The company will use new bonds for any capital project, according to the capital structure. These bonds will have a market and par value of $1000, with a coupon rate of 6% and a floatation cost of 7%. The bonds will mature in 20 years and no other debt will be used for any new investments. What is the cost of new debt? What are the advantages and disadvantages of issuing new debt in the capital structure?
Given the component costs identified above and the capital structure for the firm, what is the weighted average cost of capital for Coogly? What are the advantages and disadvantages of using this method in the capital budgeting process?
Submitted: 8 months ago.
Category: Single Problem
Expert:  F. Naz replied 8 months ago.

Please accept the offer and also mention your deadline, thanks.

Customer: replied 8 months ago.
Is $150 the total price?
Expert:  F. Naz replied 8 months ago.

No it is additional $150

Customer: replied 8 months ago.
if I get the answer tonight how much will I pay for it?
Expert:  F. Naz replied 8 months ago.

How many hours from now are remaining

Customer: replied 8 months ago.
3
Expert:  F. Naz replied 8 months ago.

Please accept the offer I will try my best to answer in next 3 hours, take care.

Customer: replied 8 months ago.
thanks I can't pay that much.
Expert:  F. Naz replied 8 months ago.

How much you can pay.

Customer: replied 8 months ago.
I have never used anything like this and i got interested because the website said $25 to get your answer so I said why not. I'm sorry if I'm making you waste your time... they should change the web site
Expert:  F. Naz replied 8 months ago.

It depends on the nature of question it is very long question which includes calculation and also slide, take care.

Customer: replied 8 months ago.
thanks
Expert:  F. Naz replied 8 months ago.

Take care, better luck next time.

Expert:  Manal Elkhoshkhany replied 8 months ago.

Hello,

I apologize I was not online yesterday when you requested me. Please advise if you still need help

Thank you

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