University of Louisiana, Lafayette - FNAN 522 Module 3 Homework.Started on Sunday, 10 November 2019, 6:36 PM State Finished Completed on Sunday, 10 November 2019, 7:01 PM Time taken 25 mins 12 secs... Grade 20.00 out of 20.00 (100%) A company has a risk free rate of 3% and a risk premium of 6%. Its tax rate is 35%. What is the company's cost of debt? Select one: a. 3.90% b. 2.10% c. 3.15% d. 5.85% A company is thinking of issuing more common stock. Its stock's current market price is $50 a share with an expected dividend annual one year from today of $3 a share. Dividends are expected to grow 5% per year and there are no flotation costs. What is the company cost of new common stock? Select one: a. 11.00% b. 13.65% c. 65% d. 12.58% Your answer is correct. FNAN522-020_860-202020 Question 3 Correct Mark 1.00 out of 1.00 Question 4 Correct Mark 1.00 out of 1.00 A company has retained earnings of $1.5 million and net income of $8 million. What is the retention ratio (expressed as a decimal)? Select one: a. 0.01875 b. 0.8125 c. 0.1875 d. 0.08125 Your answer is correct. A company makes an initial $10,000 investment in a project. This project is projected to earn $8000 in year one, $10,000 in year 2, $12,000 in year 3, and $20,000 in year 4. If the WACC is [Show More]
Last updated: 1 year ago
Preview 1 out of 10 pages
Buy this document to get the full access instantly
Instant Download Access after purchase
Add to cartInstant download
We Accept:
Connected school, study & course
About the document
Uploaded On
Feb 13, 2021
Number of pages
10
Written in
This document has been written for:
Uploaded
Feb 13, 2021
Downloads
0
Views
64
In Browsegrades, a student can earn by offering help to other student. Students can help other students with materials by upploading their notes and earn money.
We're available through e-mail, Twitter, Facebook, and live chat.
FAQ
Questions? Leave a message!
Copyright © Browsegrades · High quality services·