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27. Here are the most recent balance sheets for Country Kettles, Inc.
Excluding accumulated depreciation, determine whether each item is a
source or a use of cash, and the amount. (Do not round intermediate
calculations and round your answers to the nearest whole number, e.g., 32.
Input all amounts as positive values):
28 The relationship between nominal rates, real rates, and inflation is
known as the:
Gordon growth model.
term structure of interest rates.
Miller and Modigliani theorem.
interest rate risk premium.
Fisher effect.
29 What would be the maximum an investor should pay for the common
stock of a firm that has no growth opportunities but pays a dividend of
$1.36 per year? The required rate of return is 12.5 percent.
31. A newspaper listing of bond prices has an "Asked yield" column. This
yield is based on the asked price and represents the:
coupon rate.
difference between the current yield and the yield to maturity.
32.Mullineaux Corporation has a target capital structure of 65 percent
common stock and 35 percent debt. Its cost of equity is 14 percent, and the
cost of debt is 8 percent. The relevant tax rate is 30 percent.
What is the company’s WACC? (Do not round intermediate calculations
and enter your answer as a percent rounded to 2 decimal places, e.g.,
32.16.)
33. Filer Manufacturing has 8 million shares of common stock outstanding.
The current share price is $50, and the book value per share is $5. The
company also has two bond issues outstanding. The first bond issue has a
face value of $69.4 million and a coupon rate of 6.7 percent and sells for
108.6 percent of par. The second issue has a face value of $59.4 million
and a coupon rate of 7.2 percent and sells for 108.3 percent of par. The
first issue matures in 9 years, the second in 26 years.