Marginal Incorporated MI has determined that its before tax cost of debt is 70

Marginal incorporated mi has determined that its

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Question 244 / 4 pointsMarginal Incorporated (MI) has determined that its before-tax cost of debt is 7.0%. Its cost of preferred stock is 11.0%. Its cost of internal equity is 16.0%, and its cost of external equity is 21.0%. Currently, the firm's capital structure has $295 million of debt, $45 million of preferred stock, and $160 million of common equity. The firm's marginal tax rate is 45%. The firm is currently making projections for the next period. Itsmanagers have determined that the firm should have $55 million available from retained earnings for investment purposes next period. What is the firm's marginal cost of capital at a total investment level of $242 million? Question options:9.18%8.38%9.98%11.84%10.24% Question Set 25 Question 254 / 4 pointsMarginal Incorporated (MI) has determined that its after-tax cost of debt is 5.0% for the first $58 million in bonds it issues, and 8.0% for any bonds issued above $58 million. Its cost of preferred stock is 15.0%. Its cost of internal equity is 17.0%, and its cost of external equity is 21.0%. Currently, the firm's capital structure has $530 million of debt, $150 million of preferred stock, and $320 million of common equity. The firm'smarginal tax rate is 25%. The firm's managers have
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determined that the firm should have $58 million available from retained earnings for investment purposes next period. What is the firm's marginal cost of capital at a total investment level of $145 million?
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