what is the cost of debt after tax? what is the cost of PS what is the cost of common stock? what is the weight of the bond what is the weight of the stock what is the weight of preferred stock what is the WACC?

Q: why does the value of a share of stock depend on dividends?

A: Dividend on stocks: Dividend is the proportion of profit that the company distributes among its…

Q: What are the sources of gains for bondholders Interest payments Dividends Stock split Capital gains

A: Bondholders An investor or the owner of debt instruments, which are frequently issued by…

Q: How does preferred stock differ from bothcommon equity and debt? Is preferred stock morerisky than…

A: Difference between equity stock and preference stock: Both equity shares and preference shares…

Q: What’s the difference between a stock’s current market price and its intrinsic value?

A: Stock Current market price is the price at which the stock traded in the market.   Intrinsic value…

Q: Should preferred stock be classified as equity or debt? Explain.

A: Preferred stock is equity. Like equity or common shares, the stocks constitute a possession interest…

Q: How does the purchase of treasury stock affect the purchaser’s assets and total equity?

A: Treasury stock: It can be defined as the stock that is repurchased or bought back by the issuing…

Q: Where can investors buy and sell preferred stock from other investors

A: when it comes to trading preferred stock, investors usually go through online brokerage platforms.…

Q: What does the treasury stock method, “proceeds” include?

A: Earnings per share (EPS): The amount of net income available to each shareholder per common share…

Q: whats the return on assets? whats the return on common stockholders equity?

A: The Return on assets It is the return ratio calculated by dividing Net income by total average…

Q: Amazon equity beta Market risk premium 1.5 5.00% 10-year Treasury 1 Jan 2020 Cost of equity 1.90%…

A: cost of equity = Risk free rate + beta * market risk premium

Q: what are the differences among common stocks preferred stocks and debt securities

A: A business needs finance to run its business and this can be raised by various means such as Common…

Q: he BEAR Company has 1,500 bonds outstanding that nave a market price of $990 each. floatation cost…

A: We  need to calculate yield to maturity using excel. Yield to maturity is considered as actual cost…

Q: 1. Differentiate stocks from bonds; and stockholders from bondholders.

A: Since you have posted a question with multiple questions, we will solve the first one for you. If…

Q: What is the main reason for the yield differences between treasury bond yield and corporate bond…

A: A treasury bond is issued by the government and is backed by the treasury whereas a corporate bond…

Q: How is preferred stock similar to long-term debt? How is it comparable to equity?

A: The Answer :

Q: 1. What is the difference between a stock and bond? 2. If you were an investor, where would you…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: What does the market value of debt and equity refer to? O A. The values at which debt and equity are…

A: Intrinsic value of an asset is the price which is determined based on the actual financial…

Q: What is the formula for the Debt to Earnings Ratio? (Assume Preferred Stock Dividends)

A: a. Debt to earnings Ratio - This ratio is indicates the monthly income generated to pay its…

Q: When liabilites increase and stock holder equity decreases, what is the total assets?  shouldn't it…

A: According to the accounting equation, the total of liabilities and the stockholder equity is the…

Q: What are the advantages and disadvantages of investing in stocks vs bonds

A: Investing in stocks has the following risk: Unlike bonds, investment in common stocks does not…

Q: What is  the cost of equity, the cost of preferred stock, and the cost of debt for Walmart?

A: Calculating the cost of capital is an essential part of financial analysis, as it helps companies…

Q: What are the similarities and differences in preferred stock and debt? When would you use either or…

A: A company's capital structure is the combination of several funding sources, including debt, stock,…

Q: When Crossett Corporation was organized in January, Year 1, it immediately issued 4,100 shares of…

A: Common stock means the outstanding share of the company in which the investor invested their money…

Q: How would you calculate the cost of equity, the cost of preferred stock, and the cost of debt for…

A: Calculating the cost of capital is an essential part of financial analysis, as it helps companies…

Q: Why dividends are not deductible?And what could be the order of priority regarding income and assets…

A: Dividends: It refers to the that part of the profit that is given to common shareholders. It is…

Q: What are factors that affect the expected rate of return for holders of debt and equity?

A: The expected return is the return which the investors expect to receive in return from their…

Q: What is a share of stock? What is a bond? Explain their differences andsimilarities.

A: The bonds and shares are issued in the capital market in order to fulfil the capital requirement of…

Q: hat is the Book value common equity sh

A: Book value of equity is based on the balance sheet and how much are assets and how much are total…

Q: Which of the following is not a long term source of capital? a. Preferred stock b. Common stock c.…

A: Sources of capital can be long-term and short-term. Those sources which have a repayment period of…

Q: What is the Cost of Equity? What is the Weighted Average Cost of Capital? WACC

A: Interest on debt = 9% Weight of Debt = 60% Weight of Equity = 40% Risk Free Rate in USA = 6% Risk…

Q: How will the issuance of stock dividends affect total equity?

A: Dividend is the term of accounting which is defined as the distribution of the earnings of the…

Q: n the general stock and bond markets lead to changes in the required rate of return on a firm’s…

A: Step 1 The required reimbursement rate is the minimum refund that an investor will receive from…

Q: why is money market necessary but not sufficient for the liquidity of securities on the stock market

A: Money market (MM) is a place where short term (ST) securities are traded. Generally, governments or…

Q: What is treasury stock? Why would a company repurchase its own stock? How might they dispose of the…

A: Stockholders’ equity is the measure of assets staying in a business after the sum total of the…

Q: How do stock repurchases affect the EPS and ROE ratios?

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: Should preferred stock be considered as equity or debt? Explain.

A: Preferred stock: Preferred stock is a hybrid security that mixes characteristics of both common…

Q: In what major ways do stocks differ from bonds? When would bonds be a better investment choice than…

A: Bonds are units of corporate debts issued by companies and securitized as tradable assets. Shares…

Q: to

A: Why do we use the market value of debt and equity to estimate WACC instead of the book value :…

Q: Which of the following is not a capital market instrument? a. Corporate stock b. Mortgages c.…

A: A capital market is a marketplace for financial investments that are either direct or indirect…