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NEW QUESTION: 1
J. Ross and Sons Inc. has a target capital structure that calls for 40 percent debt, 10 percent preferred stock, and 50 percent common equity. The firm's current after-tax cost of debt is 6 percent, and it can sell as much debt as it wishes at this rate. The firm's preferred stock currently sells for $90 a share and pays a dividend of $10 per share; however, the firm will net only $80 per share from the sale of new preferred stock. Ross expects to retain $15,000 in earnings over the next year. Ross' common stock currently sells for $40 per share, but the firm will net only $34 per share from the sale of new common stock. The firm recently paid a dividend of $2 per share on its common stock, and investors expect the dividend to grow indefinitely at a constant rate of 10 percent per year. What will be the WACC above the break point?
A. 11.9%
B. 8.3%
C. 10.6%
D. 14.1%
E. 12.5%
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Preferred stock return: 10/80 = 12.5% WACC = 6%(0.40) + 12.5%(0.10) + 16.5%(0.50) = 11.90%.

NEW QUESTION: 2
You are creating a Python program that shows a congratulation message to employees on their service anniversary.
You need to calculate the number of years of service and print a congratulatory message.
You have written the following code. Line numbers are included for reference only.

You need to complete the program.
Which code should you use at line 03?
A. print("Congratulations on" + str(end - start)) + "years of service!"
B. print("Congratulations on" + str(int(end)-int(start)) + "years of service!"
C. print("Congratulations on" + int(end - start) + "years of service!"
D. print("Congratulations on" + (int(end)-int(start)) + "years of service!"
Answer: D

NEW QUESTION: 3
Carotene is the precursor of:
A. retinoic acid
B. retinol
C. riboflavin
D. thiamine
E. calciferol
Answer: B