Chapter 14
_________________________________
MyFinanceLab Solutions
Titman/Keown/Martin Financial Management 11e
Chapter 14
_________________________________
MyFinanceLab Solutions
Titman/Keown/Martin Financial Management 11e
Chapter 14
_________________________________
MyFinanceLab Solutions
Titman/Keown/Martin Financial Management 11e
Chapter 14
_________________________________
MyFinanceLab Solutions
Titman/Keown/Martin Financial Management 11e
Chapter 14
_________________________________
MyFinanceLab Solutions
Titman/Keown/Martin Financial Management 11e
Chapter 14
_________________________________
MyFinanceLab Solutions
)
(
Titman/Keown/Martin Financial Management 11e
Chapter 14
_________________________________
MyFinanceLab Solutions
)
(
Titman/Keown/Martin Financial Management 11e
Chapter 14
_________________________________
MyFinanceLab Solutions
Titman/Keown/Martin Financial Management 11e
Chapter 14
_________________________________
MyFinanceLab Solutions
)
(
Titman/Keown/Martin Financial Management 11e
Chapter 14
_________________________________
MyFinanceLab Solutions
)
(
10
Titman/Keown/Martin Financial Management 11e
Chapter 14
_________________________________
MyFinanceLab Solutions
Titman/Keown/Martin Financial Management 11e
11
Chapter 14
_________________________________
MyFinanceLab Solutions
12
Titman/Keown/Martin Financial Management 11e
Chapter 14
_________________________________
MyFinanceLab Solutions
)
(
Titman/Keown/Martin Financial Management 11e
13
Chapter 14
_________________________________
MyFinanceLab Solutions
)
(
14
Titman/Keown/Martin Financial Management 11e
Chapter 14
_________________________________
MyFinanceLab Solutions
Titman/Keown/Martin Financial Management 11e
15
Chapter 14
_________________________________
MyFinanceLab Solutions
)
(
16
Titman/Keown/Martin Financial Management 11e
Chapter 14
_________________________________
MyFinanceLab Solutions
)
(
Titman/Keown/Martin Financial Management 11e
17
Chapter 14
_________________________________
MyFinanceLab Solutions
18
Titman/Keown/Martin Financial Management 11e
Chapter 14
_________________________________
MyFinanceLab Solutions
Titman/Keown/Martin Financial Management 11e
19
Chapter 14
_________________________________
MyFinanceLab Solutions
20
Titman/Keown/Martin Financial Management 11e
Chapter 14
_________________________________
MyFinanceLab Solutions
Titman/Keown/Martin Financial Management 11e
21
Chapter 14
_________________________________
MyFinanceLab Solutions
)
(
22
Titman/Keown/Martin Financial Management 11e
Chapter 14
_________________________________
MyFinanceLab Solutions
Titman/Keown/Martin Financial Management 11e
23
Chapter 14
_________________________________
MyFinanceLab Solutions
)
(
24
Titman/Keown/Martin Financial Management 11e
Chapter 14
_________________________________
MyFinanceLab Solutions
Titman/Keown/Martin Financial Management 11e
25
Chapter 14
_________________________________
MyFinanceLab Solutions
26
Titman/Keown/Martin Financial Management 11e
Chapter 14
_________________________________
MyFinanceLab Solutions
Titman/Keown/Martin Financial Management 11e
27
Chapter 14
_________________________________
MyFinanceLab Solutions
28
Titman/Keown/Martin Financial Management 11e
Chapter 14
_________________________________
MyFinanceLab Solutions
)
(
Titman/Keown/Martin Financial Management 11e
29
Chapter 14
_________________________________
MyFinanceLab Solutions
30
Titman/Keown/Martin Financial Management 11e
Chapter 14
_________________________________
MyFinanceLab Solutions
Titman/Keown/Martin Financial Management 11e
31
Chapter 14
_________________________________
MyFinanceLab Solutions
32
Titman/Keown/Martin Financial Management 11e
Chapter 14
_________________________________
MyFinanceLab Solutions
Titman/Keown/Martin Financial Management 11e
33
Chapter 14
_________________________________
MyFinanceLab Solutions
34
Titman/Keown/Martin Financial Management 11e
Chapter 14
_________________________________
MyFinanceLab Solutions
Titman/Keown/Martin Financial Management 11e
35
Chapter 14
_________________________________
MyFinanceLab Solutions
36
Titman/Keown/Martin Financial Management 11e
Chapter 14
_________________________________
MyFinanceLab Solutions
Titman/Keown/Martin Financial Management 11e
37
Chapter 14
_________________________________
MyFinanceLab Solutions
38
Titman/Keown/Martin Financial Management 11e
Chapter 14
_________________________________
MyFinanceLab Solutions
Titman/Keown/Martin Financial Management 11e
39
Chapter 14
_________________________________
MyFinanceLab Solutions
)
(
40
Titman/Keown/Martin Financial Management 11e
Chapter 14
_________________________________
MyFinanceLab Solutions
Titman/Keown/Martin Financial Management 11e
41
Chapter 14
_________________________________
MyFinanceLab Solutions
)
(
42
Titman/Keown/Martin Financial Management 11e
Chapter 14
_________________________________
MyFinanceLab Solutions
Capital structure weights
Before-tax cost of financing
20
10
18.0%
Debt 50%
Preferred stock 10%
Common stock 40%
10.0%
8.0%
0
Debt
Preferred stock
Common stock
Titman/Keown/Martin Financial Management 11e
43
Chapter 14
_________________________________
MyFinanceLab Solutions
1
2
3
4
5
6
1
2
3
4
5
6
44
Titman/Keown/Martin Financial Management 11e
Chapter 14
_________________________________
MyFinanceLab Solutions
Capital structure weights
Before-tax cost of financing
20.0%
20
10
Debt 45%
Common stock 55%
8.0%
0
Debt
Common stock
Titman/Keown/Martin Financial Management 11e
45
Chapter 14
_________________________________
MyFinanceLab Solutions
1
2
3
4
5
1
2
3
4
5
6
46
Titman/Keown/Martin Financial Management 11e
Chapter 14
_________________________________
MyFinanceLab Solutions
Titman/Keown/Martin Financial Management 11e
47
Chapter 14
_________________________________
MyFinanceLab Solutions
)
(
48
Titman/Keown/Martin Financial Management 11e
Chapter 14
_________________________________
MyFinanceLab Solutions
1
2
3
4
5
1
2
3
4
5
6
Titman/Keown/Martin Financial Management 11e
49
Chapter 14
_________________________________
MyFinanceLab Solutions
Capital structure weights
Before-tax cost of financing
20.0%
20
Debt 35%
Preferred stock 15%
Common stock 50%
12.0%
10
10.0%
0
Debt
Preferred stock
Common stock
50
Titman/Keown/Martin Financial Management 11e
Chapter 14
_________________________________
MyFinanceLab Solutions
1
2
3
4
5
6
1
2
3
4
5
6
Titman/Keown/Martin Financial Management 11e
51
Chapter 14
_________________________________
MyFinanceLab Solutions
52
Titman/Keown/Martin Financial Management 11e
Chapter 14
_________________________________
MyFinanceLab Solutions
)
(
Titman/Keown/Martin Financial Management 11e
53
Chapter 14
_________________________________
MyFinanceLab Solutions
1
2
3
4
5
1
2
3
4
5
6
54
Titman/Keown/Martin Financial Management 11e
Chapter 14
_________________________________
MyFinanceLab Solutions
Titman/Keown/Martin Financial Management 11e
55
Chapter 14
_________________________________
MyFinanceLab Solutions
)
(
56
Titman/Keown/Martin Financial Management 11e
Chapter 14
_________________________________
MyFinanceLab Solutions
1
2
3
5
6
Titman/Keown/Martin Financial Management 11e
57
Chapter 14
_________________________________
MyFinanceLab Solutions
1
2
3
4
5
6
58
Titman/Keown/Martin Financial Management 11e
Chapter 14
_________________________________
MyFinanceLab Solutions
Titman/Keown/Martin Financial Management 11e
59
Chapter 14
_________________________________
MyFinanceLab Solutions
)
(
60
Titman/Keown/Martin Financial Management 11e
Chapter 14
_________________________________
MyFinanceLab Solutions
1
2
3
5
6
Titman/Keown/Martin Financial Management 11e
61
Chapter 14
_________________________________
MyFinanceLab Solutions
1
2
3
4
5
6
62
Titman/Keown/Martin Financial Management 11e
Chapter 14
_________________________________
MyFinanceLab Solutions
Titman/Keown/Martin Financial Management 11e
63
Chapter 14
_________________________________
MyFinanceLab Solutions
64
Titman/Keown/Martin Financial Management 11e
Chapter 14
_________________________________
MyFinanceLab Solutions
Titman/Keown/Martin Financial Management 11e
65
Chapter 14
_________________________________
MyFinanceLab Solutions
66
Titman/Keown/Martin Financial Management 11e
Chapter 14
_________________________________
MyFinanceLab Solutions
Titman/Keown/Martin Financial Management 11e
67
Chapter 14
_________________________________
MyFinanceLab Solutions
68
Titman/Keown/Martin Financial Management 11e