Question: please answer both need answer now in 10 mins. Adamson is considering four average-risk projects: Project Cost ($million) Return (%) A 2 12 3 10.5

 please answer both need answer now in 10 mins. Adamson is

considering four average-risk projects: Project Cost ($million) Return (%) A 2 12

please answer both need answer now in 10 mins.

Adamson is considering four average-risk projects: Project Cost ($million) Return (%) A 2 12 3 10.5 11.5 5 12.5 2 11 The company can issue debt at rd = 10%. It can issue preferred stock that pays a constant dividend of $7 per year at $60 per share. Its common stock currently sells for $35 per share; the next expected dividend is $2.25 and expected to grow at a constant rate of 6% per year. The target capital structure consists of 70% common stock, 20% debt, and 10% preferred stock. Only projects with expected returns that exceed WACC will be accepted. Which project(s) should Adamson accept? A. B. C. D. E OAD BUDE C CON A.C. D st 4 Duval Inc. uses only equity capital, and it has two equally-sized divisions. Division A's cost of capital is 10.0%, Division B's cost is 14.0%, and the corporate (composite) WACC is 12.0%. All of Division A's projects are equally risky, as are all of Division B's projects. However, the projects of Division A are less risky than those of Division B. Which of the following projects should the firm accept? A Division B project with an 11% return. A Division A project with a 9% return. A Division B project with a 12% return. A Division A project with an 11% return. A Division B project with a 13% return. DramaU

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