1 parole co has 77984 bonds outstanding that are selling at, Ask an Expert

Finance

1. Parole Co. has 77,984 bonds outstanding that are selling at par value. The bonds yield 8.8 percent. The company also has 4.1 million shares of common stock outstanding. The stock has a beta of 1.33 and sells for $48.9 a share. The U.S. Treasury bill is yielding 3.7 percent and the market risk premium is 7.4 percent. Parole's tax rate is 36 percent. What is the firm's weighted average cost of capital? Enter answer in percents.

2. Last week, Onboard Co. has announced that the next two annual dividends will be in the amount of $2.4 and $3.6, respectively. After that, the dividends will increase by 3.09 percent annually. The required return on this stock is 12.6 percent. What is the current price per share? (Hint: draw this out on a timeline.)

View complete question

Financial Management, Finance

Category:- Financial Management
Reference No.:- M93040337

Have any Question?Write your Review or question?

Related Questions in Financial Management

Assignment problems1 on the day harry was born his parents

Assignment Problems 1. On the day Harry was born, his parents put $1600 into an investment account that promises to pay a fixed interest rate of 5 percent per year. How much money will Harry have in this account when he ...

Hedging assignment -your portfolio a stock is currently

Hedging Assignment - Your portfolio: A stock is currently trading at 55. You hold a portfolio of the following instruments: Long 200 shares of stock Long 200 puts with a strike of 50 and maturity of three months (T=13/52 ...

Assignmentyou may need to make assumptions for some of the

Assignment You may need to make assumptions for some of the problems. You will not lose points as long as you state these assumptions, and your constraints are logical -according to your assumptions. YOUR MODELS MUST BE ...

Assignment -complete a research topic and prepare a

Assignment - Complete a research topic and prepare a write-up, and a presentation. SECTION A: Financial Analysis and Pricing Select a portfolio of five firms from the industry of your choice. Please then see me for appro ...

Assignmentdescribe a work task a hobby or another activity

Assignment Describe a work task, a hobby, or another activity that you regularly do, and sequentially list the various actionsyou take in orderto complete this activity. Consider thecomplexity of your list and the amount ...

Please use referencescase home healthbackgroundthe patient

Please use references, Case : Home HealthBACKGROUND The Patient Protection and Affordable Care Act (ACA) requires that physicians (or certain practitioners working with them) who certify beneficiaries as eligible for Med ...

When looking at the life of a project plan it is useful to

When looking at the life of a project plan, it is useful to graph and outline the cost variance (CV), and schedule variance (SV). Determining progress, or lack of progress, provides essential information to assess a give ...

Unit 3 dbthe president of eec recently called a meeting to

Unit 3 DB The President of EEC recently called a meeting to announce that one of the firm's largest suppliers of component parts has approached EEC about a possible purchase of the supplier. The President has requested t ...

Read through the below post and provide any on of the

Read through the below post and provide any on of the following: APA format 250 Words. . Ask a probing question, substantiated with additional background information, evidence or research. · Share an insight from having ...

Process improvement projectfor this assignment select

Process Improvement Project For this assignment select either your own organization or an organization about which you know enough to review the supply chain processes and identify a process that can be improved in your ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Financial Management Expert