Problem 10.01 – Holmes Company
Fundamentals of Financial Management, Concise
Brigham and Houston
10th Edition, 11th Edition, and 9th Edition
What is Holmes’ after-tax cost of debt?
Calculator Preview
Your numbers will vary.
Fundamentals of Financial Management Concise 10th Edition by Brigham and Houston
Problem 10.02 – Torch Industries
Fundamentals of Financial Management, Concise
Brigham and Houston
10th Edition, 11th Edition, and 9th Edition
What is the company’s cost of preferred stock, rp?
Calculator Preview
Your numbers will vary.
Problem 10.03 – Pearson Motors
Fundamentals of Financial Management, Concise
Brigham and Houston
10th Edition, 11th Edition, and 9th Edition
What is Pearson’s cost of common equity?
Calculator Preview
Your numbers will vary.
Problem 10.04 – Jarett & Sons’s common stock
Fundamentals of Financial Management, Concise
Brigham and Houston
10th Edition, 11th Edition, and 9th Edition
What is Jarett & Sons’s cost of equity from retained earnings and what is its cost of equity from issuing new common stock with a floatation cost?
Calculator Preview
Your numbers will vary.
Problem 10.05 – Midwest Water Works
Fundamentals of Financial Management, Concise
Brigham and Houston
10th Edition, 11th Edition, and 9th Edition
Which set of projects should be accepted?
Calculator Preview
Your numbers will vary.
Problem 10.06 – Callahan Technologies Inc.
Fundamentals of Financial Management, Concise
Brigham and Houston
10th Edition, 11th Edition, and 9th Edition
Determine the cost of equity for Callahan Technologies using the DCF approach, the CAPM approach and the bond-yield-plus-risk-premium approach.
Calculator Preview
Your numbers will vary.
Problem 10.07 – Evanec Company
Fundamentals of Financial Management, Concise
Brigham and Houston
10th Edition, 11th Edition, and 9th Edition
What is Evanec’s cost of retained earnings, percentage floatation F, and cost of new common stock re?
Calculator Preview
Your numbers will vary.
Problem 10.08 – Palencia Paints Corporation
Fundamentals of Financial Management, Concise
Brigham and Houston
10th Edition, 11th Edition, and 9th Edition
What is its cost of common equity and its WACC?
Calculator Preview
Your numbers will vary.
Problem 10.09 – Paulson Company
Fundamentals of Financial Management, Concise
Brigham and Houston
10th Edition, 11th Edition, and 9th Edition
Calculate Paulson’s WACC using market-value weights.
Calculator Preview
Your numbers will vary.
Problem 10.10 – Olsen Outfitters Inc.
Fundamentals of Financial Management, Concise
Brigham and Houston
10th Edition, 11th Edition, and 9th Edition
What is the WACC for the last dollar raised to complete the expansion?
Calculator Preview
Your numbers will vary.