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Author Question: Beauty Inc plans to maintain its optimal capital structure of 40 percent debt, 10 percent preferred ... (Read 128 times)

sarasara

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on: Jul 10, 2018
Beauty Inc plans to maintain its optimal capital structure of 40 percent debt, 10 percent preferred
  stock, and 50 percent common equity indefinitely.
 
  The required return on each component source
  of capital is as follows: debtN8 percent; preferred stockN12 percent; common equityN16 percent.
  Assuming a 40 percent marginal tax rate, what after-tax rate of return must the firm earn on its
  investments if the value of the firm is to remain unchanged?
  A) 10.64 percent B) 12.00 percent C) 12.40 percent D) 11.12 percent

Question 2

The more difficult it is to estimate a firm's cash flow needs, the greater the need to carry higher
  precautionary balances.
 
  Indicate whether the statement is true or false
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
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T4T

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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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sarasara

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

chereeb

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

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