Question: Problems: To receive a score for your answer, you have to submit the procedure and all the calculations. 1. Determine the capital structure of Executive


Problems: To receive a score for your answer, you have to submit the procedure and all the calculations. 1. Determine the capital structure of Executive Consultants, Inc. A. The capital for investment of Executive Consultants, Inc. is as follows: Sources of capital Debt (corporate bonds) Preferred shares Common shares Capital $4,100,000 $2,200,000 $2,800,000 B. To generate the $ 4.1 million of corporate bond capital, they issued bonds at $ 965 par value, with an annual coupon of $ 100 for the next 10 years, with a flotation cost of $ 10 per bond. C. The issue of preferred shares has a cost of $ 5 per share and will pay a dividend of 10% of its par value of $ 110 per preferred share. D. The risk-free rate is 3.45% and the market return is 11.25%. The company's beta coefficient is 1.23. E. Executive Consultants, Inc. has a tax liability of 35%
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