subject
Business, 27.04.2021 14:40 Rogeartest4

Tartan Industries currently has total capital equal to $7 million, has zero debt, is in the 25% federal-plus-state tax bracket, has a net income of $1 million, and distributes 40% of its earnings as dividends. Net income is expected to grow at a constant rate of 4% per year, 260,000 shares of stock are outstanding, and the current WACC is 13.10%. The company is considering a recapitalization where it will issue $2 million in debt and use the proceeds to repurchase stock. Investment bankers have estimated that if the company goes through with the recapitalization, its before-tax cost of debt will be 9% and its cost of equity will rise to 14.5%. What is the stock's current price per share (before the recapitalization)

ansver
Answers: 2

Other questions on the subject: Business

image
Business, 22.06.2019 10:30, alyea231
Which analyst position analyzes information using mathematical models to business managers make decisions? -budget analyst -management analyst -credit analyst -operations research analyst
Answers: 1
image
Business, 22.06.2019 17:40, kennyg02
Because the demand for wheat tends to be inelastic. true or false
Answers: 1
image
Business, 22.06.2019 19:30, Lucid4465
Which of the following constitute the types of unemployment occurring at the natural rate of unemployment? a. frictional and cyclical unemployment. b. structural and frictional unemployment. c. cyclical and structural unemployment. d. frictional, structural, and cyclical unemployment.
Answers: 2
image
Business, 22.06.2019 22:20, arisworlld
With q7 assume the sweet company uses a plantwide predetermined overhead rate with machine-hours as the allocation base. and for q 10,11,13,and 14,assume that the company use department predetermined overhead rates with machine-hours as the allocation bade in both departements.7. assume that sweeten company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. what selling price would the company have established for jobs p and q? what are the selling prices for both jobs when stated on a per unit basis assuming 20 units were produced for job p and 30 units were produced for job q? (do not round intermediate calculations. round your final answers to nearest whole dollar.)total price for the job for job p -job q selling price per unit for job p q . how much manufacturing overhead was applied from the molding department to job p and how much was applied to job q? (do not round intermediate calculations.) job p job q manufacturing overhead applied for job p for job q . how much manufacturing overhead was applied from the fabrication department to job p and how much was applied to job q? (do not round intermediate calculations.)job p job q manufacturing overhead applied for job p for job q . if job q included 30 units, what was its unit product cost? (do not round intermediate calculations. round your final answer to nearest whole dollar.)14. assume that sweeten company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. what selling price would the company have established for jobs p and q? what are the selling prices for both jobs when stated on a per unit basis assuming 20 units were produced for job p and 30 units were produced for job q? (do not round intermediate calculations. round your final answer to nearest whole dollar.)total price for the job p for job q selling price per unit for job p for job q
Answers: 1
You know the right answer?
Tartan Industries currently has total capital equal to $7 million, has zero debt, is in the 25% fede...

Questions in other subjects:

Konu
Mathematics, 06.12.2020 14:00
Konu
Mathematics, 06.12.2020 14:00