The cost of debt for firm XYZ is 6%. It's tax rate is 40%. The cost of retained earnings is 12% and the cost of external common equity is 14%. Retained earnings is $5000. The target capital structure calls for 45% debt and 55% equity. Compute the following:
A. Retained earnings break point
B. WACC below the RE break point
C. WACC above the RE break point
Answers: 1
Business, 22.06.2019 10:30, drejones338p04p2p
How are interest rates calculated by financial institutions? financial institutions generally calculate interest as (1) interest or (.
Answers: 1
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
The cost of debt for firm XYZ is 6%. It's tax rate is 40%. The cost of retained earnings is 12% and...
Mathematics, 02.12.2020 16:40
Mathematics, 02.12.2020 16:40
Geography, 02.12.2020 16:40
Mathematics, 02.12.2020 16:40