Hankins Corp has 5.4 million shares of common stock outstanding; 290,000 shares of 5.2% preferred stock outstanding, with a par value of $100; and 125,000, 5.7 semiannual bonds outstanding with a par value 1000 each. The common stock currently sells for $72 per share and has a beta of 1.13, The preferred stock currently sells for $103 per share, and the bonds have a 20 year to maturity and self worth. 103 percent of par. The market risk premium is 6.8%, T-bills are yielding 4.3%, and the firm's tax rate is 23%. A.What is the firm's market capital structure? B. If the firm is evaluating a new investment project that has the same risk, as the firm's typical project, what rate should the firm used to discount the project's cash flow? pls type in computer. Thanks!
Hankins Corp has 5.4 million shares of common stock outstanding; 290,000 shares of 5.2%
A.What is the firm's market capital structure?
B. If the firm is evaluating a new investment project that has the same risk, as the firm's typical project, what rate should the firm used to discount the project's cash flow?
pls type in computer. Thanks!
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