Business, 25.06.2019 04:30 jamarlittles9132
Consider the after-tax cash flows below from a project that is being considered by despondus corporation. since the project is an extension of the firm's current business, it carries the same risk as the overall firm. year 0 1 2 3 4 5 cash flow -$344,000 $86,000 $67,000 $111,000 $90,000 $97,000 despondus corporation's common stock is currently priced at $80.03, and there are 856,000,000 shares outstanding. a dividend of $3.29 per share was just paid, and dividends are expected to grow at a constant rate of 7.49% per year. the company has 6,460,000 bonds outstanding that mature in 23 years and are currently priced at $1,072 per bond. the coupon rate is 8.95%, and the bonds make semiannual interest payments. the company's tax rate is 39%. what is despondus corporation's after-tax cost of equity? what is despondus corporation's after-tax cost of debt? what is despondus corporation's weighted average cost of capital (wacc)? what is the net present value of the project? (round to the nearest dollar.) should the project be accepted? explain your answer; a simple 'yes' or 'no' will result in no points for this part of the question.
Answers: 2
Business, 22.06.2019 04:50, danny123421
Harwood company uses a job-order costing system that applies overhead cost to jobs on the basis of machine-hours. the company's predetermined overhead rate of $2.50 per machine-hour was based on a cost formula that estimates $240,000 of total manufacturing overhead for an estimated activity level of 96,000 machine-hours. required: 1. assume that during the year the company works only 91,000 machine-hours and incurs the following costs in the manufacturing overhead and work in process accounts: compute the amount of overhead cost that would be applied to work in process for the year and make the entry in your t-accounts. 2a. compute the amount of underapplied or overapplied overhead for the year and show the balance in your manufacturing overhead t-account. 2b. prepare a journal entry to close the company's underapplied or overapplied overhead to cost of goods sold.
Answers: 1
Business, 22.06.2019 20:00, enriqueliz1680
Beranek corp has $720,000 of assets, and it uses no debt--it is financed only with common equity. the new cfo wants to employ enough debt to raise the debt/assets ratio to 40%, using the proceeds from borrowing to buy back common stock at its book value. how much must the firm borrow to achieve the target debt ratio? a. $273,600b. $288,000c. $302,400d. $317,520e. $333,396
Answers: 3
Consider the after-tax cash flows below from a project that is being considered by despondus corpora...
Mathematics, 26.06.2020 16:01
Mathematics, 26.06.2020 16:01
History, 26.06.2020 16:01
Mathematics, 26.06.2020 16:01