9 Calculating WACC Mullineaux Corporation has a target capital structure of 60 percent common stock‚ 5 percent preferred stock‚ and a 35 percent debt. Its cost of equity is 12.5 percent‚ the cost of preferred stock is 5.5 percent‚ and the cost of debt is 7.2 percent. The relevant tax rate is 35 percent. a. What is Mullineaux’s WACC? b. The company president has approached you about Mullineax’s capital structure. He wants to know why the company doesn’t use more preferred stock financing
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similar to medical hospital. A hospital heal the physical parts of the people where as a lawyer heal the people both physically and mentally. In our country we can see many poor people often engaged different kind of crimes‚ and they do not get right judgment because they do not have the capacity to haired a good experience lawyer‚ because the demand of money of a good lawyer is more‚ so I have decided to established myself as a good lawyer‚ I’ll give right judgments to the people. And I think to practice
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Lini Wall Essay I believe that it is better to die for what you believe rather than to lie to save your own life. Many people have died for their beliefs. There are martyrs from all over the world‚ and they were not afraid to stand up for what they believed in‚ even if it meant losing their lives. Those people have gone down in history‚ and are respected by many. Joan of Arc was burned at the stake at the age of 19 for believing that her visions
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2. What is the maximum price they could expect to pay Monmouth‚ based on an analysis of valuation using discounted cash flow‚ calculation of WACC and terminal value determination? 2. Based on the DCF valuation and using a WACC of 8.25% (the beta assumed to be 1‚ the average beta of comparable firms and the coupon rate to be 7.96%‚ the rate for BB rated companies) and a growth rate of 5.5%. The fair price is $40.4 per share for Robertson‚ lower than the $50 offered by Simmons to sell their
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discounted payback NPV IRR‚ MIRR The Cost of Capital • Cost of Capital Components – Debt – Common Equity • WACC Should we focus on historical (embedded) costs or new (marginal) costs? The cost of capital is used primarily to make decisions which involve raising and investing new capital. So‚ we should focus on marginal costs. What types of long-term capital do organizations use? nLong-term debt nEquity Weighted Average Cost of Capital is the weighted Average of the Marginal
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okay love youAcidified potassium manganate(VII) is a strong oxidising agent so it can be used to oxidise substances. If a reaction occurs a colour change will be seen. Potassium manganate(VII) is deep purple and when it is reduced‚ it becomes colourless. Let’s take a look at some reactions involving acidified potassium manganate(VII). If a solution of potassium manganate(VII) is placed in a test tube and a light green solution of iron(II) chloride is added to the test tube‚ the purple colour of
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Generation Gap Benitez‚ Jamie P. Bragais‚ Emilyne Herana‚ Joanna Marie R Ico‚ Jellyca Maris Apostol‚ Zymoun Sampaguita High School CHAPTER 1 INTRODUCTION BACKGROUND OF THE STUDY Generation gap is refer between generations that cause conflict and complicate communication‚ creating a "gap." More specifically‚ a generation gap can be used to describe the differences in actions‚ beliefs‚ tastes‚ etc. between members of younger generations when compared to
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beta is 1.8 * 10 year Italian Government bond yield is at 4.5% * JP Morgan has issued an estimate for Expected Market Return at 8.5% * Euribor is 2% * Before tax cost of debt = 5% * Tax rate = 30% Please calculate the weighted average cost of capital (WACC) for this firm. 2. You are now asked to calculate the WACC for a toothpaste manufacturer with the following data: * Average share price for last 6 months = €34/ share * Current year’s dividend = €3/ share
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Do you agree with the view that the Conservatives were certain to win in 1979? Thatcher offered different and better ideas for the country and government which many people believed an improvement‚ gaining her a lot of popularity amongst the public but before the Conservatives were in government with Thatcher‚ the Labour party had a few difficulties (such as the winter of Discontent) whilst in power‚ which is possibly why the Conservatives won the General election. However this win could be purely
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I don’t agree with that. Some tests may take like 2-4 months to get into the teacher‚ and then the students wouldn’t be able to learn the stuff that they missed on istep+. The teachers don’t have enough time teaching because they have to prepare their students for the testing. That is why standardized testings are not
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