This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Initech has 7 million shares of common stock outstanding and 50,000 bonds outstanding. The bonds pay ... (Read 182 times)

jilianpiloj

  • Hero Member
  • *****
  • Posts: 521
on: Apr 25, 2021
Initech has 7 million shares of common stock outstanding and 50,000 bonds outstanding. The bonds pay semi-annual coupons at an annual rate of 9.05%, have 6 years to maturity and a face value of $1,000 each. The common stock currently sells for $30 a share and has a beta of 1. The bonds sell for 94% of face value and have a 10.42% yield to maturity. The market risk premium is 5.5%, T-bills are yielding 5% and the tax rate is 30%. What is the firm's capital structure weight for debt?
◦ 18.3%
◦ 19.3%
◦ 20.3%
◦ 21.3%
◦ 22.3%
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by jilianpiloj on Apr 25, 2021

chevyboi1976

  • Sr. Member
  • ****
  • Posts: 344
Reply #1 on: Apr 25, 2021
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.
Answer Preview
Only 56% of students answer this correctly


jilianpiloj

  • Member
  • Posts: 521
Reply 2 on: Apr 25, 2021
Thanks for the timely response, appreciate it

ryhom

  • Member
  • Posts: 366
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

More than nineteen million Americans carry the factor V gene that causes blood clots, pulmonary embolism, and heart disease.

Did you know?

The Centers for Disease Control and Prevention (CDC) was originally known as the Communicable Disease Center, which was formed to fight malaria. It was originally headquartered in Atlanta, Georgia, since the Southern states faced the worst threat from malaria.

Did you know?

It is believed that the Incas used anesthesia. Evidence supports the theory that shamans chewed cocoa leaves and drilled holes into the heads of patients (letting evil spirits escape), spitting into the wounds they made. The mixture of cocaine, saliva, and resin numbed the site enough to allow hours of drilling.

Did you know?

Medication errors are more common among seriously ill patients than with those with minor conditions.

Did you know?

Since 1988, the CDC has reported a 99% reduction in bacterial meningitis caused by Haemophilus influenzae, due to the introduction of the vaccine against it.

common housefly (Musca domestica) common housefly (Musca domestica)
Diverse living organisms share common chemical features Diverse living organisms share common chemical features
Disulfide bonds are yellow; the three chains are colored Disulfide bonds are yellow; the three chains are colored
Common phlebotomy issues. Common phlebotomy issues.
Offshore spawning stock biomass, Grand Bank Atlantic Cod since the early 1980s Offshore spawning stock biomass, Grand Bank Atlantic Cod since the early 1980s
Comparison of Portion Sizes of Common Foods Comparison of Portion Sizes of Common Foods
Video: Ventilation - phases and driving forces

For a complete list of videos, visit our video library