Business, 27.08.2019 22:10 dbzrules02
Your firm has $500 million of investor-supplied capital, its return on investors' capital (roic) is 15%, and it currently has no debt in its capital structure (i. e., wd = 0). the cfo is contemplating a recapitalization where it would issue debt at an after-tax cost of 10% and use the proceeds to buy back some of its common stock, such that the percentage of common equity in the capital structure (wc) is 1 - wd. if the company goes ahead with the recapitalization, its operating income, the size of the firm (i. e., total assets), total investor-supplied capital, and tax rate would remain unchanged. which of the following is most likely to occur as a result of the recapitalization? the roa would increase. the roa would remain unchanged. the return on investors' capital would decline. the return on investors' capital would increase. the roe would increase.
Answers: 1
Business, 22.06.2019 05:20, RichardKing2376
What are the general categories of capital budget scenarios? describe the overall decision-making context for each.
Answers: 3
Business, 22.06.2019 22:00, lizdeleon248
Your sister turned 35 today, and she is planning to save $60,000 per year for retirement, with the first deposit to be made one year from today. she will invest in a mutual fund that's expected to provide a return of 7.5% per year. she plans to retire 30 years from today, when she turns 65, and she expects to live for 25 years after retirement, to age 90. under these assumptions, how much can she spend each year after she retires? her first withdrawal will be made at the end of her first retirement year.
Answers: 3
Business, 23.06.2019 12:00, milkshakegrande101
The "ideal" business, according to richard buskirk of the university of southern california: has many diverse employees. has a few, carefully selected employees. has many homogeneous employees. is a "one-man show".
Answers: 1
Your firm has $500 million of investor-supplied capital, its return on investors' capital (roic) is...
History, 26.07.2019 16:00
Mathematics, 26.07.2019 16:00
Social Studies, 26.07.2019 16:00