Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. phillips equipment has 80,000 bonds outstanding th

Phillips Equipment has 80,000 bonds outstanding that are selling at par. Bonds with similar characteristics...

60.1K

Verified Solution

Question

Finance

image

Phillips Equipment has 80,000 bonds outstanding that are selling at par. Bonds with similar characteristics are yielding 7.5 percent. The company also has 750,000 shares of 7 percent preferred stock and 2.5 million shares of common stock outstanding. The preferred stock sells for $65 a share. The common stock has a beta of 1.34 and sells for $42 a share. The U.S. Treasury bill is yielding 2.8 percent and the return on the market is 11.2 percent. The corporate tax rate is 38 percent. What is the firm's weighted average cost of capital

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Meadow Brook Manor would like to buy some additional land and build a new assisted living...

Finance
Q

A student reacts 81g of salicylic acid with 14 mL of acetic anhydride producing 2g of...

Chemistry
Q

How many of the following responses are true? 1. A primary alkyl halide will tend to...

Chemistry
Q

What type of society is dependent on the combining of plant and animal genomes to create...

Psychology
Q

in full bridge inverter system, distinguish which harmonic that need to be eliminate

Electrical Engineering
Q

2 Which of the following statements about intracellular ATP ADP AMP and cAMP concentrations are...

Biology
Q

made in a circular table as shown in the figure A small cubical block of...

Physics
Q

Dake Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces...

Accounting
Q

Question 1: Type of Organization ...

Accounting
Q

Kingbird Corporation manufactures drones. On December 31, 2019, it leased to Althaus Company a drone...

Accounting
Q

The rule of 78s method (also called the sum of the digits method) is the...

Finance
Q

Question 32 2 pts Coachwhip Corporation purchased a machinery on January 1, 2022 for P5,000,000....

Accounting