Exhibit 10.1 Assume that you have been hired as a consultant by CGT, a major producer...

Question

Question

Exhibit 10.1 Assume that you have been hired as a consultant by CGT, a major producer of chemicals and plastics, including pl

business finance

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

e. 16.56%

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

A В C E F G 1 Outstanding 2 Capital Price Market Value Weight $35,240,000.00 $177,500,000.00 Debt Common stock $881.00 16.56%

Cell reference -

A В C D E F 1 Weight 2 Сapital Outstanding Market Value Price FЕЗ/SE$5 -E4/$E$5 |ЕС3*D3 C4*D4 40000 881 3 Debt 4 Common stock

Hope this will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.

Add a comment

Answer 2

Similar Homework Help Questions

Exhibit 10.1 Assume that you have been hired as a consultant by CGT, a major producer...

Exhibit 10.1 Assume that you have been hired as a consultant by CGT, a major producer of chemicals and plastics, including plastic grocery bags, styrofoam cups, and fertilizers, to estimate the firm's weighted average cost of capital. The balance sheet and some other information are provided below. Assets Current assets $38,000,000 Net plant, property, and equipment $101,000,000 Total assets $139,000,000 Liabilities and Equity Accounts payable $10,000,000 Accruals $9,000,000 Current liabilities $19,000,000 Long-term debt (40,000 bonds, $1,000 par value) $40,000,000 Total...
Exhibit 10.1 Assume that you have been hired as a consultant by CGT, a major producer of chemicals and plastics, i...

Exhibit 10.1 Assume that you have been hired as a consultant by CGT, a major producer of chemicals and plastics, including plastic grocery bags, styrofoam cups, and fertilizers, to estimate the firm's weighted average cost of capital. The balance sheet and some other information are provided below. Assets Current assets Net plant, property, and equipment Total assets $38,000,000 $101,000,000 $139,000,000 Liabilities and Equity Accounts payable Accruals Current liabilities Long-term debt (40,000 bonds, $1,000 par value) Total liabilities Common stock (10,000,000...
Assume that you have been hired as a consultant by CGT, a major producer of chemicals...

Assume that you have been hired as a consultant by CGT, a major producer of chemicals and plastics, including plastic grocery bags, styrofoam cups, and fertilizers, to estimate the firm's weighted average cost of capital. The balance sheet and some other information are provided below. Assets Current assets $38,000,000 Net plant, property, and equipment $101,000,000 Total assets $139,000,000 Liabilities and Equity Accounts payable $10,000,000 Accruals $9,000,000 Current liabilities $19,000,000 Long-term debt (40,000 bonds, $1,000 par value) $40,000,000 Total liabilities $59,000,000...

Assume that you have been hired as a consultant by CGT, a majorproducer of chemicals...

Assume that you have been hired as a consultant by CGT, a major producer of chemicals and plastics, including plastic grocery bags, styrofoam cups, and fertilizers, to estimate the firm's weighted average cost of capital. The balance sheet and some other information are provided below.AssetsCurrent assets $38,000,000Net plant, property, and equipment $101,000,000Total assets $139,000,000Liabilities and EquityAccounts payable $10,000,000Accruals $9,000,000Current liabilities $19,000,000Long-term debt (40,000 bonds, $1,000 par value) $40,000,000Total liabilities $59,000,000Common stock (10,000,000 shares) $30,000,000Retained earnings $50,000,000Total shareholders' equity $80,000,000Total liabilities...
Collins Group The Collins Group, a leading producer of custom automobile accessories, has hired you to estimate the firm...

Collins Group The Collins Group, a leading producer of custom automobile accessories, has hired you to estimate the firm's weighted average cost of capital. The balance sheet and some other information are provided below. Assets Current assets $ 38,000,000 Net plant, property, and equipment 101,000,000 Total assets $139,000,000 Liabilities and Equity Accounts payable $ 10,000,000 Accruals 9,000,000 Current liabilities $ 19,000,000 Long-term debt (40,000 bonds, $1,000 par value) 40,000,000 Total liabilities $ 59,000,000 Common stock (10,000,000 shares) 30,000,000 Retained...
Collins Group The Collins Group, a leading producer of custom automobile accessories, has hired you to estimate the firm...

Collins Group The Collins Group, a leading producer of custom automobile accessories, has hired you to estimate the firm's weighted average cost of capital. The balance sheet and some other information are provided below. Assets Current assets $ 38,000,000 Net plant, property, and equipment 101,000,000 Total assets $139,000,000 Liabilities and Equity Accounts payable $ 10,000,000 Accruals 9,000,000 Current liabilities $ 19,000,000 Long-term debt (40,000 bonds, $1,000 par value) 40,000,000 Total liabilities $ 59,000,000 Common stock (10,000,000 shares) 30,000,000 Retained earnings...

Collins Group The Collins Group, a leading producer of custom automobile accessories, has hired you to...

Collins Group The Collins Group, a leading producer of custom automobile accessories, has hired you to estimate the firm's weighted average cost of capital. The balance sheet and some other information are provided below. Assets Current assets $ 38,000,000 Net plant, property, and equipment 101,000,000 Total assets $139,000,000 Liabilities and Equity Accounts payable $ 10,000,000 Accruals 9,000,000 Current liabilities $ 19,000,000 Long-term debt (40,000 bonds, $1,000 par value) 40,000,000 Total liabilities $ 59,000,000 Common stock (10,000,000 shares) 30,000,000 Retained earnings 50,000,000 Total shareholders' equity...
Assume that you have been hired as a consultant by CGT, a major producer of chemicals...

Assume that you have been hired as a consultant by CGT, a major producer of chemicals and plastics, the company has long term debt/equity ratio of 0.5. The stock is currently selling for $15.25 per share, and its $1,000 par value, 20-year, 7.25% bonds with semiannual payments are selling for $875.00. The beta is 1.25, the yield on a 6-month T-bill is 3.50%, and the yield on a 20-year Treasury bond is 5.50%. The required return on the stock market...
o o 10) rCapital (WACC) for your i nformation provided (20 pts) You need od time...

o o 10) rCapital (WACC) for your i nformation provided (20 pts) You need od time w company. You have the the the Av balance sheet Current Assets Net Plant, Property, and Equipment $38.000.000 101.000.000 $139,000,000 Total Assets $10.000.000 2,000,000 $19,000,000 Liabilities and Equity Accounts Payable Accruals Current Liabilities Long-term Debt (40.000 bonds, $1,000 face value) Total Liabilities $40.000.000 $59,000,000 Common Stock (10,000,000 shares) Retained Earnings Total Shareholder Equity $30,000,000 50.000.000 $80,000,000 $139,000,000 Total Liabilities and Shareholders Equity You check...

This question talks about exhibit 3.3 which you can ignore but just in case anyone solving...

This question talks about exhibit 3.3 which you can ignore but just in case anyone solving this problem wants one like one who tried earlier here is the Exhibit Global Car Corporation acquires off the stock of Parts Company and reports the acquisition as a stock investment on its own books. The acquisition involves the following payments Cash paid to Parts Company Shareholders Cash paid to consultants and lawyers Fair value of new Global Car Corporation stock issued Stock registration...

Exhibit 10.1 Assume that you have been hired as a consultant by CGT, a major producer...

Homework Answers

Add Answer to:
Exhibit 10.1 Assume that you have been hired as a consultant by CGT, a major producer...

Post as a guest

Earn Coins