Gestion de La Informacion Financiera

Topics: Weighted average cost of capital, Stock, Dividend yield Pages: 3 (661 words) Published: April 14, 2013
Ejercicio ST-2 capítulo 7, Brigham, E.. (1992) Fundamentals of Financial Mangement,Estados Unidos: Editorial The Dryden Press,6a ed

Lancaster Engineering Inc. (LEI) has the following capital structure, which it considers to be optimal: Debt 25%
Prefered stock 15
Common equity 60

LEI’s expected net income this year is $34,285,72; its establish dividend payout ratio is 30 percent; its federal-plus-state tax rate is 40%; and investors expect earnings and dividends to grow at a constant rate of 9 percent in the future. LEI paid a dividend of $3.60 per share last year and its stock currently sells at a price of $60 per share.

LEI can obtain new capital in the following ways:
Common: New common stock has a flotation cost of 10% for up to $12,000 of new stock and 20% for all common over $12,000. Preferred: New preferred stock with a dividend of $11 can be sold to the public at a price of $100 per share. However, flotation costs of $5 per share will be incurred for up to $7,500 of preferred, and flotation costs will rise to $10 per share, or 10%, on all preferred mover to $7,500 Debt: Up to $5,000 of debt can be sold at an interest rate of 12%; debt in the range of $5,001 to $10,000 must carry an interest rate of 14%; and all debt over $10,000 will have an interest rate of 16%.

a) Find the break points in the MCC schedule (gráfica del CCMP)

Utilidades Retenidas | $ 24,000 |
PR de Utilidades retenidas | $ 40,000 |
PR de AC CON 10% de flotación | $ 60,000 | PR AP 5% de flotación | $ 50,000 |
PR Deuda 12% | $ 20,000 |
PR Deuda 14% | $ 40,000 |

b) Determine the cost of each capital structure component Utilidades Retenidas | (0-40,000) |  | (3.6*1.09)/60 +.09 | 15.54%| Acciones Comunes | (40,001-60,000) | 10%|...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Normas de Informacion Financiera Essay
  • Essay about Concepto de Contabilidad de Acuerdo a Las Normas de Información Financiera
  • Conformity in De La Salle University Essay
  • La Casa De Las Boats Essay
  • Reto de La Inversion de Los Sistemas de Informacion Essay
  • La Princesse de Cleves Essay
  • Las Desaparecidas de Juarez Essay
  • La route de chlifa Essay

Become a StudyMode Member

Sign Up - It's Free