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NEW QUESTION: 1
The individual or group that provides resources and support for a project and is accountable for success is the:
A. customer
B. business partners
C. sponsor
D. functional managers
Answer: C
NEW QUESTION: 2
Welche der folgenden Optionen verfügt über einen P4-Anschluss für einen 12-V-Ausgang?
A. eSATA-Kabel
B. 24-poliger Adapter
C. Molex-Anschluss
D. SCSI-Kabel
Answer: C
NEW QUESTION: 3
Becker Glass Corporation expects to have earnings before interest and taxes during the coming year of
$1,000,000, and it expects its earnings and dividends to grow indefinitely at a constant annual rate of 12.5 percent. The firm has $5,000,000 of debt outstanding bearing a coupon interest rate of 8 percent, and it has 100,000 shares of common stock outstanding. Historically, Becker has paid 50 percent of net earnings to common shareholders in the form of dividends. The current price of Becker's common stock is $40, but it would incur a 10 percent flotation cost if it were to sell new stock. The firm's tax rate is 40 percent. What is the firm's cost of retained earnings?
A. 16.0%
B. 17.0%
C. 15.5%
D. 15.0%
E. 16.5%
Answer: B
Explanation:
Explanation/Reference:
Explanation:
EBIT$1,000,000
Interest400,000
EBT$600,000
Taxes (40%)240,000
Net income$360,000
EPS(1) = $360,000/100,000 = $3.60.
D(1) = $3.60(0.5)= $1.80.
k(s) = ($1.80/$40.00) + 0.125 = 17.0%.