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?
A) 18.3%
B) 19.3%
C) 20.3%
D) 21.3%
E) 22.3%
A
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A. provides an understanding of the competitors' strengths. B. eliminates the need for in-depth analysis. C. correctly guides the writing of a mission statement. D. provides clues to the meaning of your managers' decisions. E. acts as an encyclopedia of solutions.
The five elements of the sales presentation mix are the product, the prospect, proof statements, visuals and the salesperson.
Answer the following statement true (T) or false (F)
____________________ is needed when we are making more than routine demands and facing skeptical audiences
Fill in the blank(s) with correct word
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