Consider the following balance sheet of a publicly held company: Cash $760,000 Long Term Debt $7,633,500 Receivables $1,...
Consider the following balance sheet of a publicly held company: Cash $760,000 Long Term Debt $7,633,500 Receivables $1,250,000 Common Stocks $14,176,500 Inventories $2,225,000 Net Equipment $17,575,000 It is estimated that the yield to maturity on bonds are 9%. The company faces a marginal tax rate of 34%. What would be the weighted average cost of capital for this firm?
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![(p NOTE Source of Weighted Weight Amount Weight Cost Capital Cost 7,633,500 0.35 I$7633500/ $21810000] LT Debt 5.94% 2.08% [0](http://img.homeworklib.com/images/6d964864-047f-4776-a697-12413a6767e9.png?x-oss-process=image/resize,w_560)
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Consider the following balance sheet of a publicly held company: Cash $760,000 Long Term Debt $7,633,500 Receivables $1,...
Crawford Enterprises is a publicly held company located in Arnold, Kansas. The firm began as a...
Crawford Enterprises is a publicly held company located in Arnold, Kansas. The firm began as a small tool and die shop but grew over its 35 year life to become a leading supplier of metal fabrication equipment used in the farm tractor industry. At the close of 2019 the firm's balance sheet appeared as follows: Cash $540,000 Accounts Receivable 4,580,000 Inventories 7,400,000 Long-term debt $12,590,000 Net Property, plant and equipment 18,955,000 Common equity 18,885,000 Total Assets $31,475,000 Total debt and...
Crawford Enterprises is a publicly held company located in Arnold, Kansas. The firm began as a...
Crawford Enterprises is a publicly held company located in Arnold, Kansas. The firm began as a small tool and die shop but grew over its 35-year life to become a leading supplier of metal fabrication equipment used in the farm tractor industry. At the close of 2015, the firm's balance sheet appeared as follows: Cash $420,000 Accounts receivable 5,350,000 Inventories 8,100,000 Long-term debt $12,570,000 Net property, plant, and equipment 18,128,000 Common equity 19,428,000 Total assets $31,998,000 Total debt and equity...
(Weighted average cost of capital) Crawford Enterprises is a publicly held company located in Arnold, Kansas....
(Weighted average cost of capital) Crawford Enterprises is a publicly held company located in Arnold, Kansas. The firm began as a small tool and die shop but grew over its 35-year life to become a leading supplier of metal fabrication equipment used in the farm tractor industry. At the close of 2019, the firm's balance sheet appeared as follows: Cash 460,000 Accounts receivable 3,910,000 Inventories 8,200,000 Long-term debt 11,270,000 Net property, plant, and equipment 17,715,000 Common equity 19,015,000...
long Term Capital Management Corporation's balance sheet as of today is as follows: Long-term debt (bonds,...
long Term Capital Management Corporation's balance sheet as of today is as follows: Long-term debt (bonds, at par) $10,000,000 Preferred stock 2,000,000 Common stock ($10 par) 10,000,000 Retained earnings 4,000,000 Total debt and equity $26,000,000 The bonds have a 4.5% coupon rate, payable semiannually, and a par value of $1,000. They mature exactly 10 years from today. The yield to maturity is 12%, so the bonds now sell below par. What is the current market value of the firm's debt?...
Part A Miller corporation has the following balance sheet (in E,000) ummary Balance Sheet ASSETS Cash...
Part A Miller corporation has the following balance sheet (in E,000) ummary Balance Sheet ASSETS Cash Accounts reccivable Inventories Current Assets Net Fixed Assets Total Assets 30,000 60,000 60,000 150,000 150,000 300,000 LIABILITIES Accounts payable Accruals Short-term debt Current liabilities Long-term debt Preferred stock Common stock Retained earnings Total common equity Total liabilities and equity 30,000 30,000 15,000 75,000 90,000 15,000 30,000 90,000 120,000 300,000 The short-term debt is mainly IM Euro bank loans at 6%. These loans aim to...
Based on the information given below What is the Enterprises weighted average cost of capital? 6....
Based on the information given below What is the Enterprises
weighted average cost of capital?
6. Look at the information below. This table refers to TJ Enterprises. Currently common stock is being sold at for a price equal to its book value and the firm's bonds are selling at par. John managers estimate that the market requires a 15 percent return on its common stock, the firm's command a yield to maturity of 8 percent, and the firm faces a...
You have the following data on The Home Depot, Inc. Market value of long-term debt: $20,888...
You have the following data on The Home Depot, Inc. Market value of long-term debt: $20,888 million Market value of common stock: $171,138 million Beta: 1.04 Yield to maturity on debt with 10 years to maturity: 2.167% Expected return on equity: 8.076% Marginal tax rate: 35% Assume that if Home Depot issues new bonds, the bonds will have 10 years to maturity. Suppose that managers at Home Depot decide to increase the proportion of debt to 20% of the value...
Bolster Foods' (BF) balance sheet shows a total of $25 million long-term debt with a coupon...
Bolster Foods' (BF) balance sheet shows a total of $25 million long-term debt with a coupon rate of 8.50%. The yield to maturity on this debt is 8.00%, and the debt has a total current market value of $27 million. The balance sheet also shows that the company has 10 million shares of stock, and the stock has a book value per share of $5.00. The current stock price is $20.00 per share, and stockholders' required rate of return, rs,...
CMS Corporation's balance sheet as of today is as follows: Long-term debt (bonds, at par) $10,000,000...
CMS Corporation's balance sheet as of today is as follows: Long-term debt (bonds, at par) $10,000,000 Preferred stock 2,000,000 Common stock ($10 par) 10,000,000 Retained earnings 4,000,000 Total debt and equity $26,000,000 The bonds have an 3.6% coupon rate, payable semiannually, and a par value of $1,000. They mature exactly 10 years from today. The yield to maturity is 12%, so the bonds now sell below par. What is the current market value of the firm's debt?
6. Look at the information below. This table refers to Candy Enterprises. Currently common stock is...
6. Look at the information below. This table refers to Candy Enterprises. Currently common stock is being sold at for a price equal to its book value and the firm's bonds are selling at par. Crawford managers estimate that the market requires a 15 percent return on its common stock, the firm's command a yield to maturity of 8 percent, and the firm faces a tax rate at 34 percent. Cash Accounts Receivable $54,000 458,000 Inventories Net Property, Plant &...
Part A Miller corporation has the following balance sheet (in E,000) ummary Balance Sheet ASSETS Cash Accounts reccivable Inventories Current Assets Net Fixed Assets Total Assets 30,000 60,000 60,000 150,000 150,000 300,000 LIABILITIES Accounts payable Accruals Short-term debt Current liabilities Long-term debt Preferred stock Common stock Retained earnings Total common equity Total liabilities and equity 30,000 30,000 15,000 75,000 90,000 15,000 30,000 90,000 120,000 300,000 The short-term debt is mainly IM Euro bank loans at 6%. These loans aim to...
Based on the information given below What is the Enterprises
weighted average cost of capital?
6. Look at the information below. This table refers to TJ Enterprises. Currently common stock is being sold at for a price equal to its book value and the firm's bonds are selling at par. John managers estimate that the market requires a 15 percent return on its common stock, the firm's command a yield to maturity of 8 percent, and the firm faces a...
You have the following data on The Home Depot, Inc. Market value of long-term debt: $20,888 million Market value of common stock: $171,138 million Beta: 1.04 Yield to maturity on debt with 10 years to maturity: 2.167% Expected return on equity: 8.076% Marginal tax rate: 35% Assume that if Home Depot issues new bonds, the bonds will have 10 years to maturity. Suppose that managers at Home Depot decide to increase the proportion of debt to 20% of the value...
6. Look at the information below. This table refers to Candy Enterprises. Currently common stock is being sold at for a price equal to its book value and the firm's bonds are selling at par. Crawford managers estimate that the market requires a 15 percent return on its common stock, the firm's command a yield to maturity of 8 percent, and the firm faces a tax rate at 34 percent. Cash Accounts Receivable $54,000 458,000 Inventories Net Property, Plant &...
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