Home / Questions / Phillips Equipment has 6500 bonds outstanding that are selling at 965 percent of par
Phillips Equipment has 6,500 bonds outstanding that are selling at 96.5 percent of par. Bonds with similar characteristics are yielding 6.7 percent, pretax. The company also has 48,000 shares of 5.5 percent preferred stock and 75,000 shares of common stock outstanding. The preferred stock sells for $64 a share. The common stock has a beta of 1.32 and sells for $41 a share. The preferred stock has a stated value of $100. The U.S. Treasury bill is yielding 2.2 percent and the return on the market is 10.6 percent. The corporate tax rate is 21 percent. What is the weighted average cost of capital? A) 8.09 percent B) 9.30 percent C) 10.18 percent D) 10.56 percent E) 8.64 percent 28) 28) What is the expected return on a portfolio that is equally weighted between Stocks M and N given the following information? State of Economy Probability of State of Economy Rate of Return if State Occurs Stock M Stock N .18 - .14 .06 .06 -13 Boom Normal Recession .05 A) 5.28 percent B) 6.32 percent C) 6.00 percent D) 6.40 percent E) 5.87 percent 29 29) The of a security divided by the beta of that security is equal to the slope of the security market line if the security is priced fairly. A) nominal return B) expected return C) actual return D) real return E) risk premium
Feb 08 2020 View more View Less
Problem: Exercise 3-9 Contrast ABC and Conventional Product Costs [LO2, LO3, LO4] Harrison Company makes two products and uses a conventional costing system in which ...
Jun 07 201837. Tangible costs include which of the following? a. climatic conditions b. availability of public transportation c. taxes d. quality and attitude of prospective emp...
Nov 22 2019Differentiate between the formula equation, the complete ionic equation, and the net ionic equation.
Jun 20 2021Should a heart surge on do her own pumbing?A heart surgeon is skillfull at unplugging arteries and rerouting the floe of blood and these skills also mahke her a perfect p...
May 23 2018true or false and whycompanies that have compliance programs in place will receive more favorable treatment from the government
Jul 24 2021The frequency distribution shows the results of 200 test scores. Are the test scores normally distributed? Use (alpha) α = 0.05 Complete parts (a) through (d).Class Bo...
Apr 22 2020Evaluate the line integral by two methods(a) directly, (b) using Green's Theorem
Jun 23 2021Curvature A curve C is given by the polar equation . Show that the curvature K at the point is[Hint: Represent the curve by
Jul 31 2021Sierra Company incurs the following costs to produce and sell a single product. Variable costs per unit: Direct materials $ 10 Direct labor $ 8 Variable manufacturing ove...
Aug 01 20211. Theoretically, in a long-run cost function:a. all inputs are fixedb. all inputs are considered variablec. some inputs are always fixedd. capital and labor are always c...
Apr 28 2021