A firm’s CFO wants to estimate the firm’s WACC, and has compiled the following information below. The firm uses CAPM to estimate the cost of equity, and does not account for any kind of floatation costs in the calculation of the cost of capital. What is the firm’s WACC? Capital structure 45% equity Bonds outstanding yield 7.75% Real-risk free rate 3% Market risk premium 7% Beta 1.2 Tax rate 30%

Assuming the company has a dividend payout ratio of 35% of earnings and the long term expected growth rate for dividends is 5%, what is the current value of the firm considering a discount rate of 12%?

Use the following information for questions 18 through 20 Supplemental Info Gross Margin 65% Tax Rate 35%     Balance Sheet (in millions) Total Assets 475 Shareholders Equity 250     Income Statement (in millions) Sales 175 EBITDA 75 EBIT 60 EBT 58

What is the appropriate valuation technique to use for a company that has not consistently paid dividends but has paid dividend recently, cash flows are related to earnings, and it is in a mature industry?

The PV of a company is $159.68 and has the following expected dividends. The sustainable growth rate (or terminal value growth rate) is 1.5%. What is the discount rate used to calculate the PV of $159.68? Time Period 1 2 3 Dividend 12.25 11.66 13.07

Which of the following statements is true? The larger the current ratio, the less liquid the firm. A current ratio of greater than one indicates net working capital is negative. The larger the debt ratio, the lesser the firm’s ability to pay off long-term debt.

Which Supreme Court case involving Lonnie E. Smith, an African American dentist from Houston, finally did away with discrimination in primary elections?

The “big six” counties in Texas (Harris, Dallas, Tarrant, Bexar, Travis, and El Paso) account for roughly how much of the states total population?

In the 2017 session of the Texas Legislature, which Political Party possessed super-majorities?

Which notable Texan was against leaving the Union?