Calculating WACC Weston Industries has a debt-equity ratio of 1.5. Its WACC is 12%, and its cost of debt is 12%. The corporate tax rate is 35%. a. What is Weston's cost of equity capital? b.What is Weston's unlevered cost of equity capital? c. What would the cost of equity be if the debt-equity ratio were 2? What if it
Equity Accounts Following are the equity accounts for Kerch Manufacturing: Common stock,$0.50 par value $ 165,320 Capital surplus 2,876,145 Retained earnings 2,370,025 Total $5,411,490 a. How many shares are outstanding? b. At what average price
1) Firm value is calculated by adding expected cash flow to the firm's cost of capital under each capital structure. True or False. 2) The degree of financial leverage measures the sensitivity of_______ to changes in ________. a) net sale, EBIT. b) EBIT, net sales c) EBIT, EPS. d) EPS,EBIT. 3) Explain how div
Which accounting firm is used by Sprint-Nextel Corporation and Verizon Communications?
1. Why is proper management of fixed assets crucial to the success of a firm? 2. How do you compute a project's operating cash flow?
1) What is the internal rate of return (IRR) for a project whose intitial after tax cost is $5,000,000 and it is expected to provide after tax operating cash flows of ($1,800,000) in year 1, $2,900,000 in year 2, $2,700,000 in year 3, and $2,300,000 in year 4 ? 2) A firm is evaluating a proposal that has an initial investment
A $100,000 piece of testing equipment was installed and depreciated for 5 years. Each year the end-of-year book value decreased at a rate of 10% of the book value at the beginning of the year. The system was sold for $24,000 at the end of 5 years. a) Compute the amount of the annual depreciation.
Please help with the following problems. 1) What would be the return on total assets of a firm if net income is $50,000 , total sales are $100,000 , and total assets are $175,000 ? 2) If the total assets turnover of firm is 1.5 , total assets are $500,000 , and net income is $50,000 , what is the margin ? 3) Assu
In what areas of personal financial planning are the concepts of (a)future value (b) present value (c) ordinary annuities useful . Kindly explain and give a few examples if possible.
Using the Internet, locate an article specifically related to e-business and intellectual property. And prepare a 350-400-word review of the article. Your review should assess the different types of and legal protections for intellectual property. Be sure to analyze the legal issues of e-business to include intellectual property
Assume that scientific studies provide you with the following information concerning the benefits and costs of sulfur dioxide emissions
3. Assume that scientific studies provide you with the following information concerning the benefits and costs of sulfur dioxide emissions (E) which are measured in millions of tons. MAC = 500 - 20 E MD = 200 + 5E (a) What is the socially efficient level of emissions abatement? Solve and graph in the space below.
Consider the mixed streams of cash flows shown in the following table. YEAR A B 1 $50,000 $10,000 2 $40,000 $20,000 3 $30,000 $30,000 4 $20,000 $40,000 5 $10,000 $50,000 Totals
You can deposit $10,000 into an account paying 9% annual interest either today or exactly 10 years from today. How much better off will you be at the end of 40 years if you decide to make the initial deposit today rather than 10 years from today?
What does a rate of return of 100% mean?
PPG manufactures an epoxy amine that is used to protect the contents of polyethylene terephthalate(PET)containers from reacting with oxigen. The cash flow (in millions)associated with the process is show below. Determine the rate of return. YEAR COST,$ REVENUE,$ 0 -10
Please see attachment: Answer Questions 1, 3 & 4. 1) To what cost objects could Three Dog Bakery trace its costs? 3) What sectors- manufacturing, merchandising, or service - does Three Dog Bakery operate in? Why are they classified this way? 4) When Wal-Mart purchased Lick'n Crunch cookies for sale in its stores, is
Please see the attached file. RATIOS AND FINANCIAL PLANNING AT EAST COAST YACHTS Dan Ervin was recently hired by East Coast Yachts to assist the company with its short-term financial planning and also to evaluate the company's financial performance. Dan graduated from college five years ago with a degree in finance, and h
Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has increased by 25% in the last year
Please read the problem below and provide an answer to the question. Please also illustrate/show the work (i.e. the steps) to how the answer to the problem was derived. ------------------------------------------------------------------------- Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellen
The Booth Company's sales are forecasted to increase from $1,000 in 2007 to $2,000 in 2008. What are the additional funds needed for the incoming year?
The Booth Company's sales are forecasted to increase from $1,000 in 2007 to $2,000 in 2008. Here is the balance sheet for December 31, 2007. Cash 100 Accts Payable 50 Acc Rec 200 Notes Payable 150 Inventory 200 Accruals
If you were given the responsibilities of an economic advisor to Nikita Khrushchev of the Soviet Union. How would you, as a central planner, decide what, how, and for whom to produce goods and services in a country of roughly 123 million people at the time? How successful your plan would be?
Please help me with the attached file.
The First part: What is the financial planning model and what is involved in it? --Second the percentage of sales approach to financial planning. --Third Growth rates and financial planning --Lastly what are the pros and cons of financial planning models.
Calculating Interest Rate. Find the interest rate implied by the following combinations of present and future values: Present Value Years Future Value $400 11 $648 $183 4 $249 $300 7 $300 Please show me how you calculated the problem so I can do it for my paper. These are not the
Your uncle has given you three alternatives for your inheritance. You can have $10,000 now; $2,000 per year for the next eight years; or $24,000 at the end of eight years. Which inheritance alternative would be best and why? The discount rate is 6% (Explain your answer fully)
ABC Inc., a retailer, had the following account balances as of April 30, 2006: Cash . . . . . . . . $ 5,050 Accounts Receivable . .2,450 Inventory . . . . . . .8,000 Land . . . . . . . . .13,000 Building . . . . . . .12,000 Furniture . . . . . . .2,000 Notes Payable . . . . . . . . . . . . . . $12,500 Accounts Payable .
Please see the attached file.
Expanded Accounting Equation For the following four cases, use the expanded accounting equation to compute the missing quantity. Assets Liabilities Capital Stock Retained Earnings Case A $20,000 $ 8,000 A $ 3,500 Case B 16,000 B $ 5,000 2,000 Case C
What will be my interest on 50 million dollars at 10% compound interest over 10 years? Please show computations.
You are contemplating the purchase of an office building. Next year net rental income will be $400,000, which will grow at 4% per year. You believe that in 10 years the office building could be sold for $7.4 million. The appropriate discount rate for investments of this type is 12%. What is the most you should be willing to pay
Which of the following distinctions helps to explain the difference between relevant and irrelevant cost? accounting cost versus direct cost historical cost versus replacement cost sunk cost versus fixed cost variable cost versus incremental cost