Wednesday, May 15, 2019
Math Problems Speech or Presentation Example | Topics and Well Written Essays - 500 words
Math Problems - mother tongue or Presentation ExampleDividends have grown at the swan of 4.8% per year and are anticipate to continue to do so for the foreseeable future. What is Cryptons cost of capital where the unwaverings measure rate is 30%.Q. 3 as a member of Financial Department Ranch Manufacturing, your supervisory program has asked you to compute the appropriate discount rate to use when evaluating the purchase of new packing equipment for the plant. Under the supposition that the firms present capital structure reflects the appropriate mix of capital sources for the firm, you have obdurate the market value of the firms capital structure as follows. To finance the purchase, Ranch manufacturing give sell 10-year bonds paying 6.6% per year at the market price of $1,028. Preferred stock paying a $2.05 dividend can be sold for $25.01. Common stock for Ranch Manufacturing is currently selling for $54.41 per share and the firm paid a 3.08 dividend last year. Dividends are expected to continue growing at a rate of 3.5% per year into the indefinite future. If the firms tax rate is 30%, what discount should you use to guess the equipment
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