Finance Assignment | Professional Writing

сар тортолст с True or False: The following statement accurately describes how firms make decisions related to issuing new common stock. The cost of issuing new common stock is calculated the same way as the cost of raising equity capital from retained earnings.

True: The cost of retained earnings and the cost of new common stock are calculated in the same manner, except that the cost of retained earnings is based on the firm’s existing common equity, while the cost of new common stock is based on the value of the firm’s share price net of its flotation cost.

Struggling to find relevant content? Order a custom essay on
Finance Assignment | Professional Writing
Let our experts save you the hassle
Order Now

O False: Flotation costs need to be taken into account when calculating the cost of issuing new common stock, but they do not need to be taken into account when raising capital from retained earnings. White Lion Homebuilders is considering investing in a one-year project that requires an initial investment of $500,000. To do so, it will have to issue new common stock and will incur a flotation cost of 2.00%.

At the end of the year, the project is expected to produce a cash inflow of $595,000. The rate of return that White Lion expects to earn on its project (net of its flotation costs) is (rounded to two decimal places). Alpha Moose Transporters has a current stock price of $33.35 per share, and is expected to pay a per-share dividend of $1.36 at the end of the year.

The company’s earnings’ and dividends’ growth rate are expected to grow at the constant rate of 5.20% into the foreseeable future. If Alpha Moose expects to incur flotation costs of 6.50% of the value of its newly-raised equity funds, then the flotation-adjusted (net) cost of its new common stock (rounded to two decimal places) should be White Lion Homebuilders Co.’s addition to earnings for this year is expected to be $745,000. Its target capital structure consists of 50% debt, 5% preferred, and 45% equity. Determine White Lion Homebuilders’s retained earnings breakpoint: O $2,069,445 $1,986,667 $1,903,889

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
Sign up, place your order, and leave the rest to our professional paper writers in less than 2 minutes.
step 1
Upload assignment instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Get personalized services with GPA Fix
One writer for all your papers
You can select one writer for all your papers. This option enhances the consistency in the quality of your assignments. Select your preferred writer from the list of writers who have handledf your previous assignments
Same paper from different writers
Are you ordering the same assignment for a friend? You can get the same paper from different writers. The goal is to produce 100% unique and original papers
Copy of sources used
Our homework writers will provide you with copies of sources used on your request. Just add the option when plaing your order
What our partners say about us
We appreciate every review and are always looking for ways to grow. See what other students think about our do my paper service.
The paper is everything I needed and more. I will add a title and a cover page to it. Other than that the paper turned out excellent.
Customer 452885, October 17th, 2022
English 101
The paper was late. However, it was excellent quality.
Customer 452561, July 2nd, 2021
Social Work and Human Services
Great Work!
Customer 452587, November 2nd, 2021
Customer 452813, June 30th, 2022
IT, Web
Did an excellent job with the body of the paper and staying on the topic.
Customer 452885, October 27th, 2022
I was disappointed because I didn't receive my order on time but I'm thankful to have it.
Customer 452775, December 4th, 2023
Always a job well done. I really appreciate the hard work.
Customer 452453, January 4th, 2021
Customer 452813, June 25th, 2022
Human Resources Management (HRM)
This paper is well -written from what I have read. If there are any instructor concerns, I will advise.
Customer 452701, October 24th, 2023
Great job on the paper!!
Customer 452885, December 14th, 2022
Great work! Thank so much!
Customer 452707, March 1st, 2022
Social Work and Human Services
Excellent! Done earlier than needed and with more sources than needed! Great work!
Customer 452485, August 22nd, 2021
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat

Good News ! We now help with PROCTORED EXAM. Chat with a support agent for more information