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How do you calculate the after tax cost of financing?
THE TARGET CAPITAL STRUCTURE FOR QM IS 43% COMMON STOCK, 13% PREFERRED STOCK, AND 44% DEBT. iF THE COST OF COMMON EQUITY FOR THE FIRM IS 18.6%, THE COST OF PREFERRED STOCK IS 10.4%, AND THE BEFORE TAX OF DEBT IS 7.8%, AND THE FIRM RATE IS 35%. What is QM's weighted average cost of capital?
If a risk-free rate increases what impact would it have on the cost of equity?
It would increase the cost of equity: re=rf + b*(RP) re is the cost of equity rf is the risk free rate b is the beta of the stock RP is the risk premium of the stock
Dividend reinvestment tax free?
no, they are not tax free. The dividends are taxed in the year paid. The dividend reinvestment is a purchase of stock just as if you used cash. You have to track every single purchase transaction of stock from every reinvestment to keep track of the cost basis of each stock, so as to cost it out when you sell. Motley fool has some nice info on this
How does preferred stock differ from common stock?
pay dividend before common stock
Can common stocks become preferred stocks?
Yes if there is a clause while issuing common stock that stock holder can convert the common stock to preffered stock.
Is it true that stock investments account is debited at acquisition under both the equity method and cost method of accounting for investments in common stock?
the stock investments account is debited at acquisition under both the equity method and cost method of accounting for investments in common stock
How do you calculate the after-tax cost of financing?
THE TARGET CAPITAL STRUCTURE FOR QM IS 43% COMMON STOCK, 13% PREFERRED STOCK, AND 44% DEBT. iF THE COST OF COMMON EQUITY FOR THE FIRM IS 18.6%, THE COST OF PREFERRED STOCK IS 10.4%, AND THE BEFORE TAX OF DEBT IS 7.8%, AND THE FIRM RATE IS 35%. What is QM's weighted average cost of capital?
How do you calculate the after tax cost of financing?
THE TARGET CAPITAL STRUCTURE FOR QM IS 43% COMMON STOCK, 13% PREFERRED STOCK, AND 44% DEBT. iF THE COST OF COMMON EQUITY FOR THE FIRM IS 18.6%, THE COST OF PREFERRED STOCK IS 10.4%, AND THE BEFORE TAX OF DEBT IS 7.8%, AND THE FIRM RATE IS 35%. What is QM's weighted average cost of capital?
For the purpose of calculating the cost of capital the capital components are what?
The principal components taken into account to calculate the cost of capital are the following: The dollar cost of debt, the dollar cost of preferred stock, and the dollar cost of common stock.
If a risk-free rate increases what impact would it have on the cost of equity?
It would increase the cost of equity: re=rf + b*(RP) re is the cost of equity rf is the risk free rate b is the beta of the stock RP is the risk premium of the stock
Why is the cost of new common stock greater than the cost of retained earnings?
it could be because issuing new shares in the market involves more cost such as flotation costs such as underwriting cost and the cost of having to under-price the stock so as to sell the issue.
When a plant asset is acquired by issuance of common stock the cost of the plant asset is properly measured by the?
Type your answer here... par value of the stock
How much did ford motor company stock cost per share when first offered as a ordinary common stock in January 1956?
$.01
What is the firm's cost of external equity?
When a company raises new capical, normally it seeks the investment bankers for help. There are three general ways as debt, preferred stock and common stock. The interest that the banker gets is floation cost. For debt and preferred stock. it is very small, 1 percent, so we don't incorporate it into the cost of capital. But for common stock, the bankers meet higher risk, so the floation cost is higher. A firm's external equity is not its retained earnings.
Dividend reinvestment tax free?
no, they are not tax free. The dividends are taxed in the year paid. The dividend reinvestment is a purchase of stock just as if you used cash. You have to track every single purchase transaction of stock from every reinvestment to keep track of the cost basis of each stock, so as to cost it out when you sell. Motley fool has some nice info on this
How much do you have to pay for stock footage once the free trial runs out?
The amount of stock footage that you need will determine the cost that you will have to pay once the free trial runs out. The best thing to do is to check with the people you have the free trial with to see what kind of deal you can get for the footage.
What is the cost of equity if The common stock has a beta of 1.32 and a standard deviation of 19.98 percent The market rate of return is 9 percent and the risk-free rate is 3 percent?
3% + 1.32 (9 - 3)% = 10.92%
