any finance majors?

solve this=

Marquez Software has a WACC of 16%. Its stock sells for $9, currently pays a dividend of $.50, and has a growth rate of 8%. If the debt outstanding is priced to yield 10%, what are the proportions of debt and equity in the capital structure of Marquez Software? Assume no taxes. (Hint: this problem works back from WACC to determine the debt/total value and equity/total value ratios.)

:up:

 

ask JWB about that stock's performance in the future.

 

I majored in Finance 6 years ago and I'm still trying to figure out what WACC stands for Weighted Average Cost of Capital?

Just pick letter C

 

i thought i would never see these types of problems again after i graduated. is this a problem for you or are you just tormenting old finance majors

 

Hell, I graduated just to make sure I would never see these types of problems again.

 

Ummmmm...............................punt.

 

You left out some needed info.

Everybody knows that the value of a company is dependent on the quality and quantity of the doughnuts in the breakroom.

 

For real...I graduated a little over a year ago as a finance major and I haven't seen that stuff since. Can't you do that on an Excel spreadsheet or somethin'?

And I graduated from that prominent university...Penn State.

 

it's from my mid-term, thats all the info..

 

4.2 to 1

stayed at a Holiday Inn last night

 

you can do it on excel, i remember doing those problems but they weren't that hard. But i remember doing it on excel and it being a lot easier than on paper. What level finance class is it? is it the first year general classes or specific corporate classes?

 

If a WACC and a half can gross a yield and a half, what's its PE?

 

never mind, got my grade back today, got a %100 but the question was unaswerable(trick) damn instructor.... wasted 6 hours on it....:down:

 

And I told you that.

Congrats on the 100. :up: