Help with five finance questions , see attached
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$1,370,800 |
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$1,328,000 |
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$1,490,000 |
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$1,638,000 |
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$1,800,000 |
A firm has a cost of equity of 13 percent, a cost of preferred of 11 percent, and an after tax cost of debt of 6 percent. Given this, which one of the following will increase the firm's weighted average cost of capital?
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Increasing the firm's tax rate |
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Issuing new bonds at par |
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Redeeming shares of common stock |
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Increasing the firm's beta |
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Increasing the debt-equity ratio |
Madison Square Stores has a $20 million bond issue outstanding that currently has a market value of $18.6 million. The bonds mature in 6.5 years and pay semiannual interest payments of $35 each. What is the firm's pretax cost of debt?
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4.21 percent |
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8.42 percent |
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7.58 percent |
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7.74 percent |
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7.80 percent |
Which one of the following correctly states a qualification an issuer must meet to be qualified to use Rule 415 for shelf registration?
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The issuer must never have defaulted on its debt. |
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The issuer must have outstanding stock with a market value in excess of $250 million. |
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The issuer must never have violated the Securities Act of 1934. |
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The issuer must have an investment grade rating. |
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The issuer cannot have defaulted on its debt within the past five years. |
The cost of preferred stock:
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increases when a firm's tax rate decreases. |
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is constant over time. |
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is unaffected by changes in the market price. |
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is equal to the stock's dividend yield. |
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increases as the price of the stock increases. |