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Author Question: Sara Sisters Inc. has always paid out all of its earnings as dividends, and hence has no retained ... (Read 48 times)

wqwpfwpoefnpwenf

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on: Aug 7, 2023
Sara Sisters Inc. has always paid out all of its earnings as dividends, and hence has no retained earnings. This same situation is expected to persist in the future. The company uses the CAPM to calculate its cost of equity. Its target capital structure consists of common stock, preferred stock, and debt. Which circumstance would increase the WACC?

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decrease in expected inflation 


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decrease in the flotation costs associated with issuing new common stock


◦

decrease in the company’s beta


◦

increase in the market risk premium

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by wqwpfwpoefnpwenf on Aug 7, 2023

Talvinder.Singh

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Reply #1 on: Aug 7, 2023
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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wqwpfwpoefnpwenf

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Reply 2 on: Aug 7, 2023
Gracias!

robbielu01

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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