D. only apply to bonds that have a deferred call provision.
E. are primarily designed to protect bondholders.
Cooper Brands, Inc., has 68,000 shares of stock outstanding at a market price of $63 a
share. The par value is $1 per share. The company has just announced a 5-for-4 stock
split. What will the market price per share be after the split?
The Tanning Bed has 10,000 shares of stock outstanding with a par value of $1 per
share and a market value of $8 per share. The balance sheet shows $10,000 in the
common stock account, $60,000 in the capital in excess of par account, and $94,300 in
the retained earnings account. The firm just announced a 100 percent stock dividend.
What will be the value of the common stock account after the dividend?
Justice, Inc. has a capital structure which is based on 30 percent debt, 5 percent
preferred stock, and 65 percent common stock. The flotation costs are 11 percent for
common stock, 10 percent for preferred stock, and 7 percent for debt. The corporate tax
rate is 37 percent. What is the weighted average flotation cost?
A. 8.97 percent
B. 9.48 percent