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    Capital Structure and Firm Value

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    Finance: Organizational Structure

    Please help with the given questions: Write a peer review of the attached organizational structure, using these criteria: 1-Is the organizational structure appropriate for the business selected? Explain. 2-Do other structural elements, such as work specialization and span of control, seem appropriate for the business select

    Operating Leverage and Breakeven

    Need help understanding the problem. Thanks Problem 13-10 Otis Day's company manufactures and sells men's suits. His trademark gray flannel suits are popular on Wall Street and in boardrooms throughout the East. Each suit sells for $800. Fixed costs are $200,000 and variable costs are $250 per suit. a. What is

    Stock split and risk - Ethier and Laurence Inc

    Please provide these answers in Excel so that I can figure out the steps. 1.Ethier enterprise has an unlevered beta of 1.0. Ethier is financed with 50% debt and has a levered beta of 1.6. If the risk-free rate is 5.3% and the market risk premium is 6%, how much is the additional premium that Ethier's shareholders require to b

    Definition of Capital Structure

    What do you understand by a Capital Structure? What basic principles will you advocate in the matter of deciding on a proper pattern of capital structure for a company? Explain with one illustration.

    Finance: Market Structure

    Select one of the market structures (monopoly, oligopoly, monopolistic competition, or perfect competition) and identify a company for that market structure. Then write a paragraph in which you describe the pricing and non-pricing strategies in use by that company.

    Case Study on Capital One

    Please read the attached case and answer to the following questions with in depth information. I got some help on fist answering to the questions and I attached it as well. But it is too general and not specific from the case. Please make further answers and PLEASE GET ANSWERS ONLY FROM THE CASE ATTACHED. 1. Evaluate Fairba

    Homemade Leverage and Capital Structure

    Please help answer the following finance-related questions. Claudia invested in ABC's stock when the firm was financed solely with equity. The firm is now utilizing debt in its capital structure. To unlever her position, Claudia needs to: A. borrow some money and purchase additional shares of ABC stock. B. maintain her

    Optimal Organizational Structure

    What is PM Company's optimal organizational structure? How does it impact PM Company's international market expansion plans? How would it change as PM Company adopts additional international market expansion strategies? How long and what will it take to actually change the organizational structure?

    Capital Structure: The Andersen Corporation

    The Andersen Corporation is considering the use of debt to increase its rate of return to common stockholders. The firm presently has no debt and 100,000 share of common stock outstanding for a total capitalization of $1,000,000. The firm has no current liabilities so total assets also equal $1,000,000. It has been suggested

    Debt and Capital Structure

    Should a company be financed entirely with debt? Why or why not? How does debt impact the optimal capital structure?

    Corporate Expansion and the effect on capital structure

    George Hedderwick finished his customary peanut butter and jelly sandwich, washed it down with a root beer, and turned back to his computer. His morning had been spent developing a financial planning model for Executive Fruit (see Figure 18-2). Now he needed to run out the projections to 2007. In particular, he wanted to check w

    Cost Structure Questions.

    An airline has the following cost categories: ? Fuel and oil ? Flying operations labor (flight crews - pilots, co-pilots, navigators and flight engineers) ? Passenger service labor (flight attendants) ? Aircraft traffic and servicing labor (personnel servicing aircraft and handling passengers at gates, baggage, and cargo).

    Capital structure problem

    Capital structure is one of the most complex areas of financial decision making because of its interrelationship with other financial decision variables. What is a firm's capital structure? what ratios assess the degree of financial leverage in a firm's capital structure?

    Firm Value of Old School Corporation

    Old School Corp. expects an EBIT of $9,000 every year forever. Old School currently has no debt,and it's cost of equity is 17 %. The firm can borrow at 10 %. If the corporate tax rate is 35 %, what is the value of the firm? What will be the value if Old School converts to 50 % debt? To 100 % debt?


    Determine Alexander's fixed costs, variable costs and variable cost ratio based on its 2004 sales, calculate the following: DOL DFL DCL Assuming that next year's sales increase by 15%, fixed operating and financial costs remain constant, and the variable cost ratio and tax rate also remain constant, use the leverage figure

    Capital Structure

    1) Would each of the following increase, decrease, or have an indeterminant effect on a firm's breakeven point(unit sales)? a. An increase in the sales price with no changes in unit cost? b. An increase in fixed costs accompanied by a decrease in variable cost? c. A new firm deices to use MACRS depreciation for both book a

    Optimal Capital Structure

    What is optimal capital structure? What is the result of an organization obtaining its optimal capital structure? What reasons might a company have for significantly changing its capital structure?

    A Firm's Capital Structure, Incremental IPO, and Debt Financing

    How does using more debt impact a firm's capital structure? Discuss the trade-offs between incremental IPO proceeds and debt financing. How would a company's balance sheet be impacted by debt financing rather than using cash? How would the company's return on equity be impacted by utilizing more debt? Can you provide reference s

    Present Value - Maximum Annual Carrying Cost

    A firm with a cost of capital of 13.5% has a contract to sell an asset for $230,000 in five years. The asset costs $111,000 to produce today (at t = 0). In addition to the initial production costs, the firm will incur annual maintenance and carrying costs related to the asset. What is the maximum annual carrying cost that the

    Paid In Capital Structure for Hayslett Corporation

    Paid In Capital Structure. See attached file for full problem description. P12-1A Hayslett Corporation was organized on January 1, 2006. It is authorized to issue 20,000 shares of 6%, $50 par value preferred stock, and 500,000 shares of no-par common stock with a stated value of $2 per share. The following stock transaction