1.Using the following information, calculateNd:

Format your answer in millions to the hundredths place. 14,516,000 would be entered as 14.52

The firm needs to raise $13m which it can do with debt at 7.44% or stock at $125 per share.

Existing securities with rates/dividend:

Bonds: $365M

4.07%

Stock: $639M

$0.89 per share

The firm needs to raise $13m which it can do with debt at 7.44% or stock at $125 per share.

Nd= existing shares of common stock

2.Find the breakeven EBIT if the firm has $250m with a rate of 2.3% and $15m of preferred stock which has a $1.01 dividend per share. The firm has a 40% tax rate.

3.Using the following information, calculateNe:

Format your answer in millions to the hundredths place. 14,516,000 would be entered as 14.52

The firm needs to raise $17m which it can do with debt at 7.72% or stock at $117 per share.

Existing securities with rates/dividend

Bonds: 416M

4.70%

Stock: 736M

$0.93 per share

Ne=expansion/net price + Nd