The company capital structure consists of debt 230000 at 6.45%, preferred stock 260000 at 15.40% and common stock 170000 at 11.33%, calculate and define the company's weighted average cost of capital
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Question 1:
The company capital structure consists of debt 230000 at 6.45%,
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- The company capital structure consists of debt 250000 at 0.084, preferred stock 230000 at 11% and common stock 120,000 at 14%, calculate a company's weighted average cost of capital Select one: O a. 0.1051 O b. 0.0629 OC 0.0771 d. 0.0349 e. All the given choices are not correctThe company capital structure consists of debt 230000 at 6.45%, preferred stock 260000 at 15.40% and common stock 170000 at 11.33%, calculate and define the company's weighted average cost of capitalA firm’s current balance sheet is as follows: Assets $ 110 Debt $ 44 Equity $ 66 What is the firm’s weighted-average cost of capital at various combinations of debt and equity, given the following information? Round your answers to one decimal place. Debt/Assets After-Tax Cost of Debt Cost of Equity Cost of Capital 0 % 6 % 13 % % 10 6 13 % 20 6 13 % 30 7 14 % 40 8 15 % 50 9 16 % 60 11 17 % Construct a pro forma balance sheet that indicates the firm’s optimal capital structure. Choose the best structure from the options analyzed in part a. Compare this balance sheet with the firm’s current balance sheet. Round your answers to the nearest dollar. Assets $ 110 Debt $ Equity $ What course of action should the firm take? Round your answer to the nearest whole number. Since the firm is currently using % debt financing, it at its optimal capital structure and As a…
- Capital Structure components Debt (K) Weighted Cost Total Cost Weights 3.05 25% ? Common shares (K.) 7.15 55% ? Preferred Stock (K,) 9.33 20% ? Weighted Average FIND Cost of CapitalA firm’s current balance sheet is as follows: Assets $ 110 Debt $ 22 Equity $ 88 What is the firm’s weighted-average cost of capital at various combinations of debt and equity, given the following information? Round your answers to one decimal place. Debt/Assets After-Tax Cost of Debt Cost of Equity Cost of Capital 0 % 8 % 12 % % 10 8 12 % 20 8 12 % 30 8 13 % 40 9 14 % 50 10 15 % 60 12 16 % Construct a pro forma balance sheet that indicates the firm’s optimal capital structure. Choose the best structure from the options analyzed in part a. Compare this balance sheet with the firm’s current balance sheet. Round your answers to the nearest dollar. Assets $ 110 Debt $ Equity $ What course of action should the firm take? Round your answer to the nearest whole number. Since the firm is currently using % debt financing, it at its optimal capital structure and As a…The company capital structure consists of debt 250000 at 0.071, preferred stock 230000 at 11% and common stock 120000 at 14%, calculate company’s weighted average cost of capital
- The company capital structure consists of debt 135000 at 6.05%, common stock 410000 at 10.09% and preferred stock 200000 at 11%, calculate company's weighted average cost of capital Select one: Oa. 8,59% O b.9.09% Oc. 9.59% O d. 7.59% Oe. None of the optionsYou find the following financial information about a company: net working capital = $7, 809; total assets $11,942; and long-term debt Multiple Choice $9, 115 $4, 507 $10, 339 $6, 129 $4, 133 = = = $1, 287; fixed assets $4,589. What is the company's total equity?The company capital structure consist of debt 380000 @ 4.05%, common stock 220000@12.09% and preferred stock 400000 @ 19.50%, calculate company's weighted average cost of capital Select one: O a. 12.99% O b. 11% O c. 9.50% O d. None O e. 11.99%
- 2.00,000 From the following information, calculate Capital Employed Ratio: $ Share Capital 14,00,000 4,00,000 2,00,000 9% Preference Shares Reserve and Surplus Surplus i.e., Balance in Statement of Profit and.Loss 10% Debentures (Long term) 1,50,000 5,00,000 Current Liabilities 3,00,000 Fixed Assets Land and Buildings 18,00,000 10,00,000 Current Assets 6,00,000 5,00,000 50,000 Inventories Trade Receivables Compute Return on Capital Employed Ratio.I Return on capital employed J Current ratio K Liquid ratio L Return on Equity M Gross Profit & Net Profit Margin N Give a brief report on the financial position of the company based on the above figures.You find the following financial information about a company: net working capital = $1,071; fixed assets $7,297; total assets = $11,686; and long-term debt = $4,381. What is the company's total equity? Multiple Choice $3,987 $8,539 $4,389 $6,457 $9,387
