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Author Question: Blammo, Inc has a target capital structure of 30 debt and 70 equity. The firm is planning to invest ... (Read 239 times)

abc

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on: Jul 10, 2018
Blammo, Inc has a target capital structure of 30 debt and 70 equity. The firm is planning to
  invest in a project that will necessitate raising new capital. New debt will be issued at a before-tax
  yield of 14, with a coupon rate of 10.
 
  The equity will be provided by internally generated funds
  so no new outside equity will be issued. If the required rate of return on the firm's stock is 22 and
  its marginal tax rate is 35, compute the firm's cost of capital.
  A) 18.13 B) 19.68 C) 18.00 D) 15.55

Question 2

Which of the following statements would be consistent with the bird-in-the-hand dividend
  theory?
 
  A) Wealthy investors prefer corporations to defer dividend payments because capital gains
  produce greater after-tax income.
  B) Dividends are less certain than capital gains.
  C) Dividends are more certain than capital gains income.
  D) Investors are indifferent whether stock returns come from dividend income or capital gains
  income.
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
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Kaytorgator

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Reply #1 on: Jul 10, 2018
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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abc

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Reply 2 on: Jul 10, 2018
Great answer, keep it coming :)

covalentbond

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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