Question
In: Finance
Easy Car Corp. is a grocery store located in the Southwest. It paid an annual dividend...
Easy Car Corp. is a grocery store located in the Southwest. It paid an annual dividend of $4.00 last year to its shareholders and plans to increase the dividend annually at the rate of 4.0%. It currently has 2,000,000 common shares outstanding. The shares currently sell for $10 each. Five years ago, Easy Car Corp. issued 10,000 semiannual 21-year bonds with a coupon rate of 9% and a par value of $1,000. The bonds currently have a yield to maturity (YTM) of 14%. What is the weighted average cost of capital (WACC) for Easy Car Corp. if the corporate tax rate is 30%?
Solutions
jeff jeffy answered 1 year agoRelated Solutions
Easy Car Corp. is a grocery store located in the Southwest. It paid an annual dividend...
Easy Car Corp. is a grocery store located in the Southwest. It
paid an annual dividend of $4.00 last year to its shareholders and
plans to increase the dividend annually at the rate of 3.0%. It
currently has 1,000,000 common shares outstanding. The shares
currently sell for $13 each. Two years ago, Easy Car Corp. issued
40,000 semiannual 20-year bonds with a coupon rate of 8% and a par
value of $1,000. The bonds currently have a yield to maturity...
Easy Car Corp. is a grocery store located in the Southwest. It paid an annual dividend...
Easy Car Corp. is a grocery store located in the Southwest. It
paid an annual dividend of $3.00 last year to its shareholders and
plans to increase the dividend annually at the rate of 5.0%. It
currently has 2,000,000 common shares outstanding. The shares
currently sell for $12 each. Five years ago, Easy Car Corp. issued
50,000 semiannual 28-year bonds with a coupon rate of 10% and a
par value of $1,000. The bonds currently have a yield to maturity...
Easy Car Corp. is a grocery store located in the Southwest. It paid an annual dividend...
Easy Car Corp. is a grocery store located in the Southwest. It
paid an annual dividend of $3.00 last year to its shareholders and
plans to increase the dividend annually at the rate of 3.0%. It
currently has 1,000,000 common shares outstanding. The shares
currently sell for $17 each. Two years ago, Easy Car Corp. issued
40,000 semiannual 28-year bonds with a coupon rate of 9% and a par
value of $1,000. The bonds currently have a yield to maturity...
Easy Car Corp. is a grocery store located in the Southwest. It paid an annual dividend...
Easy Car Corp. is a grocery store located in the Southwest. It
paid an annual dividend of $2.00 last year to its shareholders and
plans to increase the dividend annually at the rate of 4.0%. It
currently has 1,000,000 common shares outstanding. The shares
currently sell for $11 each. Easy Car Corp. also has 10,000
semiannual bonds outstanding with a coupon rate of 10%, a maturity
of 20 years, and a par value of $1,000. The bonds currently have
a...
Easy Car Corp. is a grocery store located in the Southwest. It paid an annual dividend...
Easy Car Corp. is a grocery store located in the Southwest. It
paid an annual dividend of $4.00 last year to its shareholders and
plans to increase the dividend annually at the rate of 5.0%. It
currently has 2,000,000 common shares outstanding. The shares
currently sell for $11 each. Five years ago, Easy Car Corp. issued
10,000 semiannual 21-year bonds with a coupon rate of 8% and a par
value of $1,000. The bonds currently have a yield to maturity...
Easy Car Corp. is a grocery store located in the southwest. It paid an annual dividend...
Easy Car Corp. is a grocery store located in the southwest. It
paid an annual dividend of $10.00 last year to its share holders
and plans to increase the dividend annualy at a rate of 4.0%
forever. It currently has 600.00 common shares outstanding. The
shares currently sell for $50 each. Easy Car Corp. also has 20,000
semi annual bonds outstanding with coupon rate of 8.9141%, a
maturity of 26years, and a par value of 1,000. The bonds currently
have...
Tix Corp. is a grocery store located in the Southwest. It paid an annual dividend of...
Tix Corp. is a grocery store located in the Southwest. It paid
an annual dividend of $2.00 last year to its shareholders and
plans to increase the dividend annually at the rate of 3.0%. It
currently has 1,000,000 common shares outstanding. The shares
currently sell for $13 each. Four years ago, Tix Corp. issued
40,000 semiannual 22-year bonds with a coupon rate of 7% and a par
value of $1,000. The bonds currently have a yield to maturity
(YTM) of...
Tix Corp. is a grocery store located in the Southwest. It paid an annual dividend of...
Tix Corp. is a grocery store located in the Southwest. It paid
an annual dividend of $3.00 last year to its shareholders and
plans to increase the dividend annually at the rate of 5.0%. It
currently has 1,000,000 common shares outstanding. The shares
currently sell for $12 each. Four years ago, Tix Corp. issued
50,000 semiannual 27-year bonds with a coupon rate of 6% and a par
value of $1,000. The bonds currently have a yield to maturity
(YTM) of...
Easy Car Corp. is a grocery store located in the Southwest. Next year dividend is $2.00...
Easy Car Corp. is a grocery store located in the Southwest. Next
year dividend is $2.00 and plans to increase the dividend annually
at the rate of 3.0%. It currently has 1,000,000 common shares
outstanding. The shares currently sell for $10 each. Two years
ago, Easy Car Corp. issued 40,000 semiannual 20-year bonds with a
coupon rate of 8% and a par value of $1,000. The bonds currently
have a yield to maturity (YTM) of 11%. What is the weighted...
Easy Car Corp. is a grocery store located in the Southwest. It plans to pay an...
Easy Car Corp. is a grocery store located in the Southwest. It
plans to pay an annual dividend of $3.00 next year to its
shareholders and plans to increase the dividend annually at the
rate of 3.0%. It currently has 1,000,000 common shares
outstanding. The shares currently sell for $18 each. Easy Car
Corp. also has 10,000 semiannual bonds outstanding with a coupon
rate of 6%, a maturity of 24 years, and a par value of $1,000.
The bonds currently...
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