Business, 16.04.2020 21:25 juliannabartra
6. Alpha Products maintains a capital structure of 40 percent debt and 60 percent common equity. To finance its capital budget for next year, the firm will sell $50 million of 11 percent bonds at par value (assume no flotation costs). The firm will finance the rest of its $125 million in capital expenditures with retained earnings. Next year, Alpha expects net income to grow 7 percent to $140 million, and dividends also are expected to increase 7 percent to $1.40 per share and to continue growing at that rate for the foreseeable future. The current market value of Alpha's common stock is $30 per share. If the firm has a tax rate of 21 percent, what is its weighted cost of capital for next year
Answers: 3
Business, 22.06.2019 17:20, iilovejohnccena1022
David burdick is the ceo of acme bubblegum, a successful public company. as one of the cofounders of the company, burdick has enjoyed speaking and writing about the success of acme bubblegum for several years. typically, he speaks at conferences or directly to the press, but recently, he has been blogging about his firm anonymously. specifically, he defended a recent advertising campaign that was unpopular among consumers and pointedly attacked one of acme bubblegum’s competitors. burdick deeply enjoys his anonymous blogging and believes that none of his readers actually know that he works for acme bubblegum. should burdick be allowed to praise his company’s performance anonymously online? should he be allowed to attack his competitors without disclosing his relationship with the company? how would you feel if the ceo of a company at which you shopped was secretly writing criticisms of his or her competition? how would you feel if you knew a writer for your favorite blog was actually closely involved in a company that the blog discussed? 1. define the ethical issue? 2. who are the primary stakeholders? 3. what are the possible alternatives? 4. how could you evaluate the ethical implications of the alternative actions (use appropriate decision rules)? 5. what action would you recommend and why?
Answers: 3
Business, 23.06.2019 00:30, HottheadAnthony7234
Shelly bought a house five years ago for $150,000 and obtained an 80% loan. now the home is worth $140,000 and her loan balance has been reduced by $12,000. what is shelly's current equity?
Answers: 3
Business, 23.06.2019 12:40, brenda0014
Acompany finances the purchase of equipment with a $500,000 5-year note payable. the note has an interest rate of 12% and a monthly payment of $11,122. after two payments have been made, what amount should the company report as the note payable balance in its december 31 balance sheet?
Answers: 2
6. Alpha Products maintains a capital structure of 40 percent debt and 60 percent common equity. To...
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