MTS, Inc. has 825,000 shares of common stock selling for $39.97 per share. The company is going to pay $2.14 annual dividend next year. The dividend is expected to grow by 1.25 percent per year. The stock has a beta of 0.99. There are also 15,000 shares of 7.00 percent preferred stock selling at $104 per share. Par value is $100. The outstanding bond mature in 11 years. 111,000 shares of bond are quoted at a price of 103.40. The bond pays 6.00 percent interest. Tax rate is 20 percent. Current risk-free rate is 4.10 percent and expected market return is 10 percent. What is the MTS, Inc.'s weighted average cost of capital?

 

You decided to buy a new car and the dealer's best price is $60,000. The dealer agrees to provide financing with a five-year loan at 5.3/4 percent (5.75%). Payments are made monthly.

What are your monthly payments?

What is your total interest paid in 5 years?

How much of the third payment is interest? 

Show your work.

Answer rating: 100% (QA)

MTS Incs Weighted Average Cost of Capital WACC 1 Cost of Equity Ke Use the Capital Asset Pricing Model CAPM Ke Riskfree rate Beta Market return Riskfr... View the full answer