1. K-Electric Power Company is a power generation company, while Procter and Gamble is a consumer products company and Toyota Motors is an automobile manufacturing company. Which of the following is most likely to issue special dividends for sharing profits with shareholders in times of profitability, but conserve cash otherwise? A. K-Electric Power Company. B.… Read More

1. Digital Design Corporation has an after-tax cost of debt capital of 7 percent, a cost of preferred stock of 9 percent, a cost of equity capital of 11 percent, and a weighted average cost of capital of 8.5 percent. In raising additional capital, the company intends to maintain its current capital structure. In order… Read More