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What is the firm's component cost of debt for purposes of calculating the WACC?
If the firm's beta is 1.6, the risk-free rate is 9 percent, and the expected return on the market is 13 percent, what will be the firm's cost of equity.
The Bouchard Company's current EPS is $6.50. It was $4.42 5 years ago.
If investors require a 9 percent return, what rate of growth must be expected for Sidman?
To maintain the present capital structure, how much of the new investment must be financed by common equity?
The stock will be issued for $30 and the flotation cost is 10 percent of the issue proceeds.
Suppose a company will issue new 20-year debt with a par value of $1,000 and a coupon rate of 9 percent, paid annually.
Assuming that Gao will not issue new equity and will continue to use the same target capital structure, what is the company's WACC?
What sources of capital should be included when you estimate Harry Davis's weighted average cost of capital?
Explain how to use the corporate valuation model to find the price per share of common equity .
Brooks Enterprises has never paid a dividend. Free cash flow is projected to be $80,000 and $100,000 for the next 2 years, respectively.
Suppose Dozier has $10 million in marketable securities, $100 million in debt, and 10 million shares of stock. What is the price per share?
The first acquisition target is a privately held company in a mature industry. The company currently has free cash flow of $20 million.
Define the capital budgeting, regular payback period, discounted payback period.
How is a project classification scheme used in the capital budgeting process?
Would changes in the cost of capital ever cause a change in the IRR ranking of two such projects?
In what sense is a reinvestment rate assumption embodied in the NPV, IRR, and MIRR methods?
Is the stock in equilibrium? Explain, and describe what will happen if the stock is not in equilibrium.
Assume that the average firm in your company's industry is expected to grow at a constant rate of 6 percent and its dividend yield is 7 percent.
If the required return on the stock is 15 percent, what is the value of the stock today?
Suppose interest rate levels rise to the point where the preferred stock now yields 12 percent. What would be the value of Ezzell's preferred stock?
Assuming that the calculated growth rate is expected to continue, you can add the dividend yield to the expected growth rate to get the expected total rate.
What will be Levine's stock value if the previous dividend was D0 $2 and if investors expect dividends to grow at a constant compound annual rate.
Calculate the expected dividend yield, D1/P0, the capital gains yield expected during the first year, and the expected total return.
What will be TTC's dividend yield and capital gains yield once its period of supernormal growth ends?