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NEW QUESTION: 1
Byron Corporation's present capital structure, which is also its target capital structure, is 40 percent debt and 60 percent common equity. Next year's net income is projected to be $21,000, and Byron's payout ratio is 30 percent. The company's earnings and dividends are growing at a constant rate of 5 percent; the last dividend was $2.00; and the current equilibrium stock price is $21.88. Byron can raise all the debt financing it needs at 14 percent. If Byron issues new common stock, a 20 percent flotation cost will be incurred. The firm's marginal tax rate is 40 percent. Assume that at one point along the marginal cost of capital schedule the component cost of equity is 18 percent. What is the Weighted Average Cost of Capital (WACC) at that point?
A. 14.2%
B. 13.6%
C. 10.8%
D. 18.0%
E. 16.4%
Answer: A
Explanation:
Explanation/Reference:
Explanation:
MCC (Marginal Cost of Capital) = 0.4(0.14)(1 - 0.4) + 0.6(0.18) = 0.142 = 14.2%.
NEW QUESTION: 2
HOTSPOT
Answer:
Explanation:
Explanation:
References: http://www.sharepointdiary.com/2016/12/configure-my-sites-in-sharepoint-
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NEW QUESTION: 3
プロジェクトマネージャーは、企業に重要な税制上のメリットを提供することが期待される複数国プロジェクトを想定しています。実行段階で、プロジェクトマネージャーは、プロジェクトのチャーターに含まれていないプロセスの例外や変更に遭遇します。
これを避けるために、プロジェクトの開始時に何を考慮すべきでしたか？
A. Enterprise environment factors
B. Configuration management plan
C. Lessons learned
D. Project scope statement
Answer: B