Information on gerken power co., is shown below. assume the company’s tax rate is 40 percent. debt: 9,400 8.4 percent coupon bonds outstanding, $1,000 par value, 21 years to maturity, selling for 100.5 percent of par; the bonds make semiannual payments. common stock: 219,000 shares outstanding, selling for $83.90 per share; beta is 1.24. preferred stock: 12,900 shares of 5.95 percent preferred stock outstanding, currently selling for $97.10 per share. market: 7.2 percent market risk premium and 5 percent risk-free rate. required: calculate the company's wacc. (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.) wacc %

C) 19.7%

Explanation:

The new population distribution after climate change wiped out homozygous recessive dinosaurs is:

The percentage of offspring of this new population that are homozygous recessive is given by:

19.7% of these newborn dinosaurs died

C.48.2%

Step-by-step explanation:

correct answer is 13.25 percent.

Explanation:

Debt = (750,000*101%)

        = $757,500  

cost = 8.3*(1-tax rate)

         = 8.3*(1-0.21)

         = 6.557%

Equity = (165000*33)

           = $5,445,000

cost = 14.7%

Preferred stock = (15000*43)

                           =$645000

cost = 8.9%

Total = $645000 + $5,445,000 + $757,500

         = $6847500

weighted average cost of capital = costs*Respective weights

= (757500/6847500*6.557) + (5,445,000/6847500*14.7) +(645000/6847500*8.9)

= 13.25%

Therefore, The weighted average cost of capital is 13.25%

Miller-bond:

today:            $  1,167.68

after 1-year:   $  1,157.74

after 3 year:  $  1,136.03

after 7-year:  $ 1,084.25

after 11-year: $  1,018.87

at maturity:   $ 1,000.00

Modigliani-bond:

today:            $    847.53

after 1-year:   $    855.49

after 3 year:  $     873.41

after 7-year:  $     918.89

after 11-year: $       981.14

at maturity:   $  1,000.00

Explanation:

We need to solve for the present value of the coupon payment and maturity of each bonds:

Miller:

C80.000

time12

rate0.06

PV$670.7075

Maturity   1,000.00

time   12.00

rate  0.06

PV   496.97

PV c$670.7075

PV m  $496.9694

Total$1,167.6769

In few years ahead we can capitalize the bod and subtract the coupon payment

after a year:

1.167.669 x (1.06) - 80 = $1,157.7375

after three-year:

1,157.74 x 1.06^2 - 80*1.06 - 80 = 1136.033855

If we are far away then, it is better to re do the main formula

after 7-years:

C80.000

time5

rate0.06

PV$336.9891

Maturity   1,000.00

time   5.00

rate  0.06

PV $747.26

PV c$336.9891

PV m  $747.2582

Total$1,084.2473

1 year before maturity:

last coupon payment + maturity

1,080 /1.06 =  1.018,8679 = 1,018.87

For the Modigliani bond, we repeat the same procedure.

PV

C30.000

time24

rate0.04

PV$457.4089

Maturity   1,000.00

time   24.00

rate  0.04

PV   390.12

PV c$457.4089

PV m  $390.1215

Total$847.5304

And we repeat the procedure for other years

Step-by-step explanation:  

1. The balance sheet contains these three elements of a business - Assets, liabilities, and owner's equity

2. Which of the following is not considered a current assets? - Business equipment

3. Using a base year and calculating each future amount as a percentage of the base year amount is called a - Horizontal analysis

4. Which of the following items is not a current liability? - Mortgage payable

5. Gross sales total = $82649

Net sales total = $79281

To calculate the the percentage of the net sales ,

= 4.2%

6. % ≈38%

7. gross profit in sales minus operating expenses = net income.

; option A.

8. The formula for the gross profit margin ratio is - Cost of goods sold divided by net sales

9. net sales = total sales - sales of return and allowances

= ; option C.

Step-by-step explanation:

Answer is 25

I hope it's helpful!!