Fundamentals of Financial Management, Concise, 9e & 10e by Brigham and Houston
Problem 10.02 – Torch Industries
Fundamentals of Financial Management, Concise, 11e by Brigham and Houston and Fundamentals of Financial Management, Concise, 9e & 10e by Brigham and Houston
What is the company’s cost of preferred stock, rp?
Problem 10.04 – Jarett & Sons’s common stock
Fundamentals of Financial Management, Concise, 11e by Brigham and Houston and Fundamentals of Financial Management, Concise, 9e & 10e by Brigham and Houston
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?
Problem 10.06 – Callahan Technologies Inc.
Fundamentals of Financial Management, Concise, 11e by Brigham and Houston and Fundamentals of Financial Management, Concise, 9e & 10e by Brigham and Houston
Determine the cost of equity for Callahan Technologies using the DCF approach, the CAPM approach and the bond-yield-plus-risk-premium approach.
Problem 10.07 – Evanec Company
Fundamentals of Financial Management, Concise, 11e by Brigham and Houston and Fundamentals of Financial Management, Concise, 9e & 10e by Brigham and Houston
What is Evanec’s cost of retained earnings, percentage floatation F, and cost of new common stock re?
Problem 10.09 – Paulson Company
Fundamentals of Financial Management, Concise, 11e by Brigham and Houston and Fundamentals of Financial Management, Concise, 9e & 10e by Brigham and Houston
Calculate Paulson’s WACC using market-value weights.
Problem 10.10 – Olsen Outfitters Inc.
Fundamentals of Financial Management, Concise, 11e by Brigham and Houston and Fundamentals of Financial Management, Concise, 9e & 10e by Brigham and Houston
What is the WACC for the last dollar raised to complete the expansion?