This assignment is an individual assignment The Assignment must be submitted only in WORD format via the allocated folder. Assignments submitted through email will not be accepted. Students are advised to make their work clear and well presented. This also includes filling in your information on the cover page. Students must mention question numbers clearly in their answers Late submitted assignments will NOT be entertained Avoid plagiarism, the work should be in your own words; copying from students or other resources without proper referencing will result in ZERO marks. No exceptions. All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism). Submissions without this cover page will NOT be accepted Course Learning Outcomes-Covered . CLOS: Evaluate cost of capital for decisions related to financing the operations of a corporation CLO6: Measure financial corporate performance Assignment Questions: (Marks: 05) Q1. American Exploration, Inc., a natural gas producer, is trying to decide whether to revise its target capital structure. Currently it targets a 50-50 mix of debt and equity, but it is considering a target capital structure with 70% debt. American Exploration currently has 6% after-tax cost of debt and a 12% cost of common stock. The company does not have any preferred stock outstanding. (2 Marks Ch 13 Q2. Why is a preference share called a hybrid security? Do you agree that it combines the worst features of ordinary shares and bonds? (1 Mark)- Ch 15 Q3. What is financial distress? How does it affect the value of firm? (1 Mark)- Ch 16 Q4. Explain the nature of the factors which influence the dividend policy of a firm. (1 Mark)-Ch 17 This assignment is an individual assignment The Assignment must be submitted only in WORD format via the allocated folder. Assignments submitted through email will not be accepted. Students are advised to make their work clear and well presented. This also includes filling in your information on the cover page. Students must mention question numbers clearly in their answers Late submitted assignments will NOT be entertained Avoid plagiarism, the work should be in your own words; copying from students or other resources without proper referencing will result in ZERO marks. No exceptions. All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism). Submissions without this cover page will NOT be accepted Course Learning Outcomes-Covered . CLOS: Evaluate cost of capital for decisions related to financing the operations of a corporation CLO6: Measure financial corporate performance Assignment Questions: (Marks: 05) Q1. American Exploration, Inc., a natural gas producer, is trying to decide whether to revise its target capital structure. Currently it targets a 50-50 mix of debt and equity, but it is considering a target capital structure with 70% debt. American Exploration currently has 6% after-tax cost of debt and a 12% cost of common stock. The company does not have any preferred stock outstanding. (2 Marks Ch 13 Q2. Why is a preference share called a hybrid security? Do you agree that it combines the worst features of ordinary shares and bonds? (1 Mark)- Ch 15 Q3. What is financial distress? How does it affect the value of firm? (1 Mark)- Ch 16 Q4. Explain the nature of the factors which influence the dividend policy of a firm. (1 Mark)-Ch 17