Crook is planning a $100 million expansion to be financed with 20% debt, 5% preferred stock and the rest
by retained earnings.• The debt consists of 15-year bonds with a coupon rate of 12% paid annually. The face value is $1000 and the bonds are issued at par. (Assume issue costs are negligible). • The preferred stock pays an annual dividend of $3.50 a share and is sold to the public for $27 a share. Issue costs for preferred are $2 per share. • Crook expects dividends of $3.68 next year. The growth rate is 8%. Current price of the common stock is $40 per share. Tax rate is 40%. Find weighted average cost of capital.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more