Business, 28.07.2019 03:30 asiababbie33

The total market value of the common stock of the okefenokee company is $6 million, and the total value of its debt is $4 million. the treasurer estimates that the beta of the stock is currently 1.5 and that the expected risk premium on the market is 6%. the treasury bill rate is 4%. assume for simplicity that okefenokee debt is risk-free and the company does not pay tax. what is the required return on okefenokee stock? estimate the company cost of capital. what is the discount rate for an expansion of the company's present business? suppose the company wants to diversify into the manufacture of rose-colored spectacles. the beta of unleveraged optical manufacturers is 1.2. estimate the required return on okefenokee new venture.

Answers: 1

Show answers

Other questions on the subject: Business

Business, 22.06.2019 01:00, reagriffis24

How does the economy of cuba differ from the economy of north korea? in north korea, the government’s control of the economy has begun to loosen. in cuba, the government maintains a tight hold over the economy. in cuba, the government’s control of the economy has begun to loosen. in north korea, the government maintains a tight hold over the economy. in north korea, there is economic uncertainty in exchange for individual choice. in cuba, there is economic security in exchange for government control. in cuba, there is economic uncertainty in exchange for individual choice. in north korea, there is economic security in exchange for government control.\

Answers: 2

continue

Business, 22.06.2019 01:30, mobslayer88

Iam trying to get more members on my blog. how do i do this?

Answers: 3

continue

Business, 22.06.2019 03:00, aparr2007

Working with a word processor requires more than just a knowledge of typing. a good word processor includes a number of tools designed to aid in formatting documents to meet the needs of the reader. in this project you will use your word-processing skills and a basic knowledge of apa style to format a research paper. the skills you will need for this project include the following: adjusting line spacing (double-spacing) breaking text into pages (page break) centering text changing the font, style, and size of the text editing text inserting page numbers inserting a table using spell check

Answers: 1

continue

Business, 22.06.2019 03:30, autumnxng3094

Lindon company is the exclusive distributor for an automotive product that sells for $30.00 per unit and has a cm ratio of 30%. the company’s fixed expenses are $162,000 per year. the company plans to sell 20,200 units this year. required: 1. what are the variable expenses per unit? (round your "per unit" answer to 2 decimal places.) 2. what is the break-even point in unit sales and in dollar sales? 3. what amount of unit sales and dollar sales is required to attain a target profit of $72,000 per year? 4. assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $3.00 per unit. what is the company’s new break-even point in unit sales and in dollar sales? what dollar sales is required to attain a target profit of $72,000?

Answers: 2

continue

You know the right answer?

The total market value of the common stock of the okefenokee company is $6 million, and the total va...