Assets liabilities and equity

Assignment Help Advanced Statistics

Reference no: EM13114516

WACC The Patrick Company's year-end balance sheet is shown below. Its cost of common equity is 16%, its before-tax cost of debt is 13%, and its marginal tax rate is 40%. Assume that the firm's long-term debt sells at par value. The firm has 576 shares of common stock outstanding that sell for $4.00. Calculate Patrick's WACC using market value weights.

Assets Liabilities and Equity

Cash: $ 120

Accounts receivable: 240

Inventories: 360

Long-term debt: $1,152

Plant and equipment: 2,160

Common equity: 1,728

Total assets: $2,880

Total liabilities: $2,880

Reference no: EM13114516

Questions Cloud

How many grams of ammonia could be produced : If equal masses of N2 and H2 (7.00 grams each) are combined to produce ammonia NH3, how many grams of ammonia could be produced at maximum yield.

Computing probability with replacement : An urn contains 7 blue and 3 yellow chips. If the drawing of chips is done with replacement, determine the probability of: Drawing three yellow chips.

Explain how much cash does a company have : Explain How much cash does a company have if the firm has a current ratio of 2.5, a quick ratio of 1.2, and current liabilities of $12,000?

Formulate and test appropriate set of hypotheses : Formulate and test an appropriate set of hypotheses to determine if the machine can be qualified. Use a = 0.05. Find the P-value.

Assets liabilities and equity : WACC The Patrick Company's year-end balance sheet is shown below. Its cost of common equity is 16%, its before-tax cost of debt is 13%, and its marginal tax rate is 40%.

Describe how the mcdonalds prices its revenues and costs : Describe how the McDonalds prices its revenues and costs. For MNE's with multiple foreign operations, consider any two of those operations and the contribution they are making to the parent firm's profits.

Application of mathematics and computer programming : Financial Engineering is the application of mathematics and computer programming skills to solve certain problems in finance drawing on tools of statistics, economics, computer science and applied mathematics.

What is the thickness of the gold leaf in cm : Pure gold can be made into extremely thin sheets called gold leaf. Suppose that 5.0 x 102 kg of gold is made into gold leaf having an area of 3620 m2.

Elucidate advantages might socialist system have in respond : Elucidate advantages might a socialist system have in responding to the needs of people struck by an emergency situation like the earthquake that occurred in Haiti in January of 2010?

User Account

All Pages