A company's debt-to-equity ratio was 1.0 at the end of Year 1. By the end of Year 2, it had increased to 1.7. Since the ratio increased from Year 1 to Year 2, the degree of risk in the firm's financing structure decreased during Year 2.
Answer the following statement true (T) or false (F)
False
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What is the operating income for the Paint Department?
a. 54%; b. 49.6%; c. 27.8%; d. 20%; e. none of these
Solid Structures, Inc., a manufacturer of steel wire reinforcements and pre-stressed concrete strands for the concrete construction industry, wants to determine its WACC. Today, 1/1/2018, the firm issued 7,000 bonds that will mature in 1/1/2038 with $1,000 face value. These bonds will pay a 9% coupon rate semiannually and are currently selling for $950. The firm has 100,000 preferred shares of stock outstanding with a book value of $40, but currently selling for $50 per share. The most recent preferred and common dividends were $3.50 and $2.50 per share, respectively. The firm’s EPS five years ago was $8.00 and it expects to increase its next dividend payment by the implied 5-year earnings per share growth rate. Flotation costs on debt and preferred equity are both 3%, but 7% in the
case of common stocks. The common stock is selling today for $25 and the firm’s tax rate and payout ratio are 40% and 25%, respectively. The firm has 200,000 shares of common stock outstanding with the same book value as that of its preferred stock. a) Calculate the book value and market value weights for each source of capital. b) Calculate the component costs of capital (i.e., debt, preferred equity, retained earnings, and new common equity). c) Determine the weighted average costs of capital using both the market and the book value weights.
______ people make up the largest minority group in the United States.
a. Black/African American b. Asian c. Hispanic d. American Indian and Alaska native
New-to-the-world products can establish completely new markets or radically change the rules of competition as well as consumer preferences in a market.
Answer the following statement true (T) or false (F)