SlideShare una empresa de Scribd logo
1 de 1
Descargar para leer sin conexión
Assume that you are on the financial staff of Vanderheiden Inc., and you have collected the
following data: The yield on the company's outstanding bonds is 7.75%, its tax rate is 25%, the
next expected dividend is $0.65 a share, the dividend is expected to grow at a constant rate of
6.00% a year, the price of the stock is $14.00 per share, the flotation cost for selling new shares
is F = 10%, and the target capital structure is 45% debt and 55% common equity. What is the
firm's WACC, assuming it must issue new stock to finance its capital budget? a. 9.62% b. 8.92%
c. 8.24% d. 8.09% e. 8.75%

Más contenido relacionado

Más de rohiitshangari

Bardo Construction Co. has consistently used the percentage-of-compl.pdf
Bardo Construction Co. has consistently used the percentage-of-compl.pdfBardo Construction Co. has consistently used the percentage-of-compl.pdf
Bardo Construction Co. has consistently used the percentage-of-compl.pdfrohiitshangari
 
Banks face a trade-off between prudence and profit because Part 2 A..pdf
Banks face a trade-off between prudence and profit because Part 2 A..pdfBanks face a trade-off between prudence and profit because Part 2 A..pdf
Banks face a trade-off between prudence and profit because Part 2 A..pdfrohiitshangari
 
BALANCE SHEET Current Assets Cash $ 23,000 Accounts Receivable $ 8,0.pdf
BALANCE SHEET Current Assets Cash $ 23,000 Accounts Receivable $ 8,0.pdfBALANCE SHEET Current Assets Cash $ 23,000 Accounts Receivable $ 8,0.pdf
BALANCE SHEET Current Assets Cash $ 23,000 Accounts Receivable $ 8,0.pdfrohiitshangari
 
Baidu se ha diversificado mediante la creaci�n y adquisici�n de nuev.pdf
Baidu se ha diversificado mediante la creaci�n y adquisici�n de nuev.pdfBaidu se ha diversificado mediante la creaci�n y adquisici�n de nuev.pdf
Baidu se ha diversificado mediante la creaci�n y adquisici�n de nuev.pdfrohiitshangari
 
Bacterial colony color is an indirect measure of gene editing. Remin.pdf
Bacterial colony color is an indirect measure of gene editing. Remin.pdfBacterial colony color is an indirect measure of gene editing. Remin.pdf
Bacterial colony color is an indirect measure of gene editing. Remin.pdfrohiitshangari
 
Background The provision of culturally safe practice is an expectati.pdf
Background The provision of culturally safe practice is an expectati.pdfBackground The provision of culturally safe practice is an expectati.pdf
Background The provision of culturally safe practice is an expectati.pdfrohiitshangari
 
B. Un granjero lechero de 30 a�os Ralph gozaba de buena salud hasta .pdf
B. Un granjero lechero de 30 a�os Ralph gozaba de buena salud hasta .pdfB. Un granjero lechero de 30 a�os Ralph gozaba de buena salud hasta .pdf
B. Un granjero lechero de 30 a�os Ralph gozaba de buena salud hasta .pdfrohiitshangari
 
b) O is an E3 ubiquitin ligase that binds with L, a transcription fa.pdf
b) O is an E3 ubiquitin ligase that binds with L, a transcription fa.pdfb) O is an E3 ubiquitin ligase that binds with L, a transcription fa.pdf
b) O is an E3 ubiquitin ligase that binds with L, a transcription fa.pdfrohiitshangari
 
Assume that 14 of people are left-handed. If we select 5 people at .pdf
Assume that 14 of people are left-handed. If we select 5 people at .pdfAssume that 14 of people are left-handed. If we select 5 people at .pdf
Assume that 14 of people are left-handed. If we select 5 people at .pdfrohiitshangari
 
AVL trees Tasks - Add rotations (balancing of the tree) to your impl.pdf
AVL trees Tasks - Add rotations (balancing of the tree) to your impl.pdfAVL trees Tasks - Add rotations (balancing of the tree) to your impl.pdf
AVL trees Tasks - Add rotations (balancing of the tree) to your impl.pdfrohiitshangari
 
Aurora Mart�nez (31) se presenta como contribuyente soltera. Aurora .pdf
Aurora Mart�nez (31) se presenta como contribuyente soltera. Aurora .pdfAurora Mart�nez (31) se presenta como contribuyente soltera. Aurora .pdf
Aurora Mart�nez (31) se presenta como contribuyente soltera. Aurora .pdfrohiitshangari
 
Aunque los estudios transculturales han proporcionado un conocimient.pdf
Aunque los estudios transculturales han proporcionado un conocimient.pdfAunque los estudios transculturales han proporcionado un conocimient.pdf
Aunque los estudios transculturales han proporcionado un conocimient.pdfrohiitshangari
 
Aurelio likes to start projects, but he rarely completes them. His m.pdf
Aurelio likes to start projects, but he rarely completes them. His m.pdfAurelio likes to start projects, but he rarely completes them. His m.pdf
Aurelio likes to start projects, but he rarely completes them. His m.pdfrohiitshangari
 
At the time of the case, Netflix faced what strategic issueMu.pdf
At the time of the case, Netflix faced what strategic issueMu.pdfAt the time of the case, Netflix faced what strategic issueMu.pdf
At the time of the case, Netflix faced what strategic issueMu.pdfrohiitshangari
 
Assume the probability density function of two Random Variable X1 an.pdf
Assume the probability density function of two Random Variable X1 an.pdfAssume the probability density function of two Random Variable X1 an.pdf
Assume the probability density function of two Random Variable X1 an.pdfrohiitshangari
 
At the time of publication of the Annual Report for 202122, who was.pdf
At the time of publication of the Annual Report for 202122, who was.pdfAt the time of publication of the Annual Report for 202122, who was.pdf
At the time of publication of the Annual Report for 202122, who was.pdfrohiitshangari
 
At the beginning of January, the Sacks Company reported total assets.pdf
At the beginning of January, the Sacks Company reported total assets.pdfAt the beginning of January, the Sacks Company reported total assets.pdf
At the beginning of January, the Sacks Company reported total assets.pdfrohiitshangari
 
At December 31, JOE had account balances in Accounts Recelvable of $.pdf
At December 31, JOE had account balances in Accounts Recelvable of $.pdfAt December 31, JOE had account balances in Accounts Recelvable of $.pdf
At December 31, JOE had account balances in Accounts Recelvable of $.pdfrohiitshangari
 
Asunto manejo de conflictos Caso Mejora del desempe�o en los ser.pdf
Asunto manejo de conflictos Caso Mejora del desempe�o en los ser.pdfAsunto manejo de conflictos Caso Mejora del desempe�o en los ser.pdf
Asunto manejo de conflictos Caso Mejora del desempe�o en los ser.pdfrohiitshangari
 

Más de rohiitshangari (19)

Bardo Construction Co. has consistently used the percentage-of-compl.pdf
Bardo Construction Co. has consistently used the percentage-of-compl.pdfBardo Construction Co. has consistently used the percentage-of-compl.pdf
Bardo Construction Co. has consistently used the percentage-of-compl.pdf
 
Banks face a trade-off between prudence and profit because Part 2 A..pdf
Banks face a trade-off between prudence and profit because Part 2 A..pdfBanks face a trade-off between prudence and profit because Part 2 A..pdf
Banks face a trade-off between prudence and profit because Part 2 A..pdf
 
BALANCE SHEET Current Assets Cash $ 23,000 Accounts Receivable $ 8,0.pdf
BALANCE SHEET Current Assets Cash $ 23,000 Accounts Receivable $ 8,0.pdfBALANCE SHEET Current Assets Cash $ 23,000 Accounts Receivable $ 8,0.pdf
BALANCE SHEET Current Assets Cash $ 23,000 Accounts Receivable $ 8,0.pdf
 
Baidu se ha diversificado mediante la creaci�n y adquisici�n de nuev.pdf
Baidu se ha diversificado mediante la creaci�n y adquisici�n de nuev.pdfBaidu se ha diversificado mediante la creaci�n y adquisici�n de nuev.pdf
Baidu se ha diversificado mediante la creaci�n y adquisici�n de nuev.pdf
 
Bacterial colony color is an indirect measure of gene editing. Remin.pdf
Bacterial colony color is an indirect measure of gene editing. Remin.pdfBacterial colony color is an indirect measure of gene editing. Remin.pdf
Bacterial colony color is an indirect measure of gene editing. Remin.pdf
 
Background The provision of culturally safe practice is an expectati.pdf
Background The provision of culturally safe practice is an expectati.pdfBackground The provision of culturally safe practice is an expectati.pdf
Background The provision of culturally safe practice is an expectati.pdf
 
B. Un granjero lechero de 30 a�os Ralph gozaba de buena salud hasta .pdf
B. Un granjero lechero de 30 a�os Ralph gozaba de buena salud hasta .pdfB. Un granjero lechero de 30 a�os Ralph gozaba de buena salud hasta .pdf
B. Un granjero lechero de 30 a�os Ralph gozaba de buena salud hasta .pdf
 
b) O is an E3 ubiquitin ligase that binds with L, a transcription fa.pdf
b) O is an E3 ubiquitin ligase that binds with L, a transcription fa.pdfb) O is an E3 ubiquitin ligase that binds with L, a transcription fa.pdf
b) O is an E3 ubiquitin ligase that binds with L, a transcription fa.pdf
 
Assume that 14 of people are left-handed. If we select 5 people at .pdf
Assume that 14 of people are left-handed. If we select 5 people at .pdfAssume that 14 of people are left-handed. If we select 5 people at .pdf
Assume that 14 of people are left-handed. If we select 5 people at .pdf
 
AVL trees Tasks - Add rotations (balancing of the tree) to your impl.pdf
AVL trees Tasks - Add rotations (balancing of the tree) to your impl.pdfAVL trees Tasks - Add rotations (balancing of the tree) to your impl.pdf
AVL trees Tasks - Add rotations (balancing of the tree) to your impl.pdf
 
Aurora Mart�nez (31) se presenta como contribuyente soltera. Aurora .pdf
Aurora Mart�nez (31) se presenta como contribuyente soltera. Aurora .pdfAurora Mart�nez (31) se presenta como contribuyente soltera. Aurora .pdf
Aurora Mart�nez (31) se presenta como contribuyente soltera. Aurora .pdf
 
Aunque los estudios transculturales han proporcionado un conocimient.pdf
Aunque los estudios transculturales han proporcionado un conocimient.pdfAunque los estudios transculturales han proporcionado un conocimient.pdf
Aunque los estudios transculturales han proporcionado un conocimient.pdf
 
Aurelio likes to start projects, but he rarely completes them. His m.pdf
Aurelio likes to start projects, but he rarely completes them. His m.pdfAurelio likes to start projects, but he rarely completes them. His m.pdf
Aurelio likes to start projects, but he rarely completes them. His m.pdf
 
At the time of the case, Netflix faced what strategic issueMu.pdf
At the time of the case, Netflix faced what strategic issueMu.pdfAt the time of the case, Netflix faced what strategic issueMu.pdf
At the time of the case, Netflix faced what strategic issueMu.pdf
 
Assume the probability density function of two Random Variable X1 an.pdf
Assume the probability density function of two Random Variable X1 an.pdfAssume the probability density function of two Random Variable X1 an.pdf
Assume the probability density function of two Random Variable X1 an.pdf
 
At the time of publication of the Annual Report for 202122, who was.pdf
At the time of publication of the Annual Report for 202122, who was.pdfAt the time of publication of the Annual Report for 202122, who was.pdf
At the time of publication of the Annual Report for 202122, who was.pdf
 
At the beginning of January, the Sacks Company reported total assets.pdf
At the beginning of January, the Sacks Company reported total assets.pdfAt the beginning of January, the Sacks Company reported total assets.pdf
At the beginning of January, the Sacks Company reported total assets.pdf
 
At December 31, JOE had account balances in Accounts Recelvable of $.pdf
At December 31, JOE had account balances in Accounts Recelvable of $.pdfAt December 31, JOE had account balances in Accounts Recelvable of $.pdf
At December 31, JOE had account balances in Accounts Recelvable of $.pdf
 
Asunto manejo de conflictos Caso Mejora del desempe�o en los ser.pdf
Asunto manejo de conflictos Caso Mejora del desempe�o en los ser.pdfAsunto manejo de conflictos Caso Mejora del desempe�o en los ser.pdf
Asunto manejo de conflictos Caso Mejora del desempe�o en los ser.pdf
 

Último

Russian Call Girls in Andheri Airport Mumbai WhatsApp 9167673311 💞 Full Nigh...
Russian Call Girls in Andheri Airport Mumbai WhatsApp  9167673311 💞 Full Nigh...Russian Call Girls in Andheri Airport Mumbai WhatsApp  9167673311 💞 Full Nigh...
Russian Call Girls in Andheri Airport Mumbai WhatsApp 9167673311 💞 Full Nigh...Pooja Nehwal
 
Accessible design: Minimum effort, maximum impact
Accessible design: Minimum effort, maximum impactAccessible design: Minimum effort, maximum impact
Accessible design: Minimum effort, maximum impactdawncurless
 
Separation of Lanthanides/ Lanthanides and Actinides
Separation of Lanthanides/ Lanthanides and ActinidesSeparation of Lanthanides/ Lanthanides and Actinides
Separation of Lanthanides/ Lanthanides and ActinidesFatimaKhan178732
 
Measures of Central Tendency: Mean, Median and Mode
Measures of Central Tendency: Mean, Median and ModeMeasures of Central Tendency: Mean, Median and Mode
Measures of Central Tendency: Mean, Median and ModeThiyagu K
 
Student login on Anyboli platform.helpin
Student login on Anyboli platform.helpinStudent login on Anyboli platform.helpin
Student login on Anyboli platform.helpinRaunakKeshri1
 
Web & Social Media Analytics Previous Year Question Paper.pdf
Web & Social Media Analytics Previous Year Question Paper.pdfWeb & Social Media Analytics Previous Year Question Paper.pdf
Web & Social Media Analytics Previous Year Question Paper.pdfJayanti Pande
 
Sports & Fitness Value Added Course FY..
Sports & Fitness Value Added Course FY..Sports & Fitness Value Added Course FY..
Sports & Fitness Value Added Course FY..Disha Kariya
 
Advanced Views - Calendar View in Odoo 17
Advanced Views - Calendar View in Odoo 17Advanced Views - Calendar View in Odoo 17
Advanced Views - Calendar View in Odoo 17Celine George
 
Sanyam Choudhary Chemistry practical.pdf
Sanyam Choudhary Chemistry practical.pdfSanyam Choudhary Chemistry practical.pdf
Sanyam Choudhary Chemistry practical.pdfsanyamsingh5019
 
Organic Name Reactions for the students and aspirants of Chemistry12th.pptx
Organic Name Reactions  for the students and aspirants of Chemistry12th.pptxOrganic Name Reactions  for the students and aspirants of Chemistry12th.pptx
Organic Name Reactions for the students and aspirants of Chemistry12th.pptxVS Mahajan Coaching Centre
 
Measures of Dispersion and Variability: Range, QD, AD and SD
Measures of Dispersion and Variability: Range, QD, AD and SDMeasures of Dispersion and Variability: Range, QD, AD and SD
Measures of Dispersion and Variability: Range, QD, AD and SDThiyagu K
 
BASLIQ CURRENT LOOKBOOK LOOKBOOK(1) (1).pdf
BASLIQ CURRENT LOOKBOOK  LOOKBOOK(1) (1).pdfBASLIQ CURRENT LOOKBOOK  LOOKBOOK(1) (1).pdf
BASLIQ CURRENT LOOKBOOK LOOKBOOK(1) (1).pdfSoniaTolstoy
 
JAPAN: ORGANISATION OF PMDA, PHARMACEUTICAL LAWS & REGULATIONS, TYPES OF REGI...
JAPAN: ORGANISATION OF PMDA, PHARMACEUTICAL LAWS & REGULATIONS, TYPES OF REGI...JAPAN: ORGANISATION OF PMDA, PHARMACEUTICAL LAWS & REGULATIONS, TYPES OF REGI...
JAPAN: ORGANISATION OF PMDA, PHARMACEUTICAL LAWS & REGULATIONS, TYPES OF REGI...anjaliyadav012327
 
The byproduct of sericulture in different industries.pptx
The byproduct of sericulture in different industries.pptxThe byproduct of sericulture in different industries.pptx
The byproduct of sericulture in different industries.pptxShobhayan Kirtania
 
Mastering the Unannounced Regulatory Inspection
Mastering the Unannounced Regulatory InspectionMastering the Unannounced Regulatory Inspection
Mastering the Unannounced Regulatory InspectionSafetyChain Software
 
SOCIAL AND HISTORICAL CONTEXT - LFTVD.pptx
SOCIAL AND HISTORICAL CONTEXT - LFTVD.pptxSOCIAL AND HISTORICAL CONTEXT - LFTVD.pptx
SOCIAL AND HISTORICAL CONTEXT - LFTVD.pptxiammrhaywood
 
APM Welcome, APM North West Network Conference, Synergies Across Sectors
APM Welcome, APM North West Network Conference, Synergies Across SectorsAPM Welcome, APM North West Network Conference, Synergies Across Sectors
APM Welcome, APM North West Network Conference, Synergies Across SectorsAssociation for Project Management
 
Paris 2024 Olympic Geographies - an activity
Paris 2024 Olympic Geographies - an activityParis 2024 Olympic Geographies - an activity
Paris 2024 Olympic Geographies - an activityGeoBlogs
 

Último (20)

Russian Call Girls in Andheri Airport Mumbai WhatsApp 9167673311 💞 Full Nigh...
Russian Call Girls in Andheri Airport Mumbai WhatsApp  9167673311 💞 Full Nigh...Russian Call Girls in Andheri Airport Mumbai WhatsApp  9167673311 💞 Full Nigh...
Russian Call Girls in Andheri Airport Mumbai WhatsApp 9167673311 💞 Full Nigh...
 
Accessible design: Minimum effort, maximum impact
Accessible design: Minimum effort, maximum impactAccessible design: Minimum effort, maximum impact
Accessible design: Minimum effort, maximum impact
 
Separation of Lanthanides/ Lanthanides and Actinides
Separation of Lanthanides/ Lanthanides and ActinidesSeparation of Lanthanides/ Lanthanides and Actinides
Separation of Lanthanides/ Lanthanides and Actinides
 
Measures of Central Tendency: Mean, Median and Mode
Measures of Central Tendency: Mean, Median and ModeMeasures of Central Tendency: Mean, Median and Mode
Measures of Central Tendency: Mean, Median and Mode
 
Student login on Anyboli platform.helpin
Student login on Anyboli platform.helpinStudent login on Anyboli platform.helpin
Student login on Anyboli platform.helpin
 
Web & Social Media Analytics Previous Year Question Paper.pdf
Web & Social Media Analytics Previous Year Question Paper.pdfWeb & Social Media Analytics Previous Year Question Paper.pdf
Web & Social Media Analytics Previous Year Question Paper.pdf
 
Sports & Fitness Value Added Course FY..
Sports & Fitness Value Added Course FY..Sports & Fitness Value Added Course FY..
Sports & Fitness Value Added Course FY..
 
Advanced Views - Calendar View in Odoo 17
Advanced Views - Calendar View in Odoo 17Advanced Views - Calendar View in Odoo 17
Advanced Views - Calendar View in Odoo 17
 
Sanyam Choudhary Chemistry practical.pdf
Sanyam Choudhary Chemistry practical.pdfSanyam Choudhary Chemistry practical.pdf
Sanyam Choudhary Chemistry practical.pdf
 
Organic Name Reactions for the students and aspirants of Chemistry12th.pptx
Organic Name Reactions  for the students and aspirants of Chemistry12th.pptxOrganic Name Reactions  for the students and aspirants of Chemistry12th.pptx
Organic Name Reactions for the students and aspirants of Chemistry12th.pptx
 
Measures of Dispersion and Variability: Range, QD, AD and SD
Measures of Dispersion and Variability: Range, QD, AD and SDMeasures of Dispersion and Variability: Range, QD, AD and SD
Measures of Dispersion and Variability: Range, QD, AD and SD
 
BASLIQ CURRENT LOOKBOOK LOOKBOOK(1) (1).pdf
BASLIQ CURRENT LOOKBOOK  LOOKBOOK(1) (1).pdfBASLIQ CURRENT LOOKBOOK  LOOKBOOK(1) (1).pdf
BASLIQ CURRENT LOOKBOOK LOOKBOOK(1) (1).pdf
 
JAPAN: ORGANISATION OF PMDA, PHARMACEUTICAL LAWS & REGULATIONS, TYPES OF REGI...
JAPAN: ORGANISATION OF PMDA, PHARMACEUTICAL LAWS & REGULATIONS, TYPES OF REGI...JAPAN: ORGANISATION OF PMDA, PHARMACEUTICAL LAWS & REGULATIONS, TYPES OF REGI...
JAPAN: ORGANISATION OF PMDA, PHARMACEUTICAL LAWS & REGULATIONS, TYPES OF REGI...
 
Advance Mobile Application Development class 07
Advance Mobile Application Development class 07Advance Mobile Application Development class 07
Advance Mobile Application Development class 07
 
The byproduct of sericulture in different industries.pptx
The byproduct of sericulture in different industries.pptxThe byproduct of sericulture in different industries.pptx
The byproduct of sericulture in different industries.pptx
 
Mastering the Unannounced Regulatory Inspection
Mastering the Unannounced Regulatory InspectionMastering the Unannounced Regulatory Inspection
Mastering the Unannounced Regulatory Inspection
 
SOCIAL AND HISTORICAL CONTEXT - LFTVD.pptx
SOCIAL AND HISTORICAL CONTEXT - LFTVD.pptxSOCIAL AND HISTORICAL CONTEXT - LFTVD.pptx
SOCIAL AND HISTORICAL CONTEXT - LFTVD.pptx
 
Código Creativo y Arte de Software | Unidad 1
Código Creativo y Arte de Software | Unidad 1Código Creativo y Arte de Software | Unidad 1
Código Creativo y Arte de Software | Unidad 1
 
APM Welcome, APM North West Network Conference, Synergies Across Sectors
APM Welcome, APM North West Network Conference, Synergies Across SectorsAPM Welcome, APM North West Network Conference, Synergies Across Sectors
APM Welcome, APM North West Network Conference, Synergies Across Sectors
 
Paris 2024 Olympic Geographies - an activity
Paris 2024 Olympic Geographies - an activityParis 2024 Olympic Geographies - an activity
Paris 2024 Olympic Geographies - an activity
 

Assume that you are on the financial staff of Vanderheiden Inc., and.pdf

  • 1. Assume that you are on the financial staff of Vanderheiden Inc., and you have collected the following data: The yield on the company's outstanding bonds is 7.75%, its tax rate is 25%, the next expected dividend is $0.65 a share, the dividend is expected to grow at a constant rate of 6.00% a year, the price of the stock is $14.00 per share, the flotation cost for selling new shares is F = 10%, and the target capital structure is 45% debt and 55% common equity. What is the firm's WACC, assuming it must issue new stock to finance its capital budget? a. 9.62% b. 8.92% c. 8.24% d. 8.09% e. 8.75%