Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Consider the following information for Federated Junkyards of America.
Debt: $78,000,000 book value outstanding. The debt is trading at 93% of book value. The yield to maturity is 8%.
Equity: 2,800,000 shares selling at $45 per share. Assume the expected rate of return on Federated’s stock is 17%.
Taxes: Federated’s marginal tax rate is Tc = .30.
Calculate the weighted-average cost of capital (WACC). (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Weighted-average cost of capital %
What is the proper cash flow amount to use as the initial investment in fi xed assets when evaluating this project? Why?
John Doeber borrowed $160,000 to buy a house. His loan cost was 6% and he promised to repay the loan in 15 equal annual payments. How much are the annual payments?
Wings and More purchased a piece of property for $1.4 million. It paid a down payment of 15 percent in cash and financed the balance. The loan terms require monthly payments for 15 years at an annual percentage rate of 7.60 percent, compounded monthl..
You invest $3,000 annually in a mutual fund that earns 10 percent annually, and you reinvest all distributions. How much will you have in the account at the end of 20 years? You invest $3,000 annually in a mutual fund with a 5 percent load fee so tha..
The Aqua Liquid Assets Money Market Mutual Fund has a NAV of $1 per share. During the year, the assets held by this fund appreciated by 1.2 percent. If you had invested $20,000 in this fund at the start of the year, how many shares would you own at t..
Which two types of stakeholders would you argue to be the most important for the modern corporation and why? How do these types of stakeholders influence corporate finance decisions? Is this an appropriate level of influence for these stakeholder typ..
Calculate the cash conversion cycle for BBC and determine the amount of funding that is necessary to support operations.
You are considering the following two competing mutually exclusive projects. Management team expects both projects can payback in 3 years.
Risk and return is a classic item in finance. You would like to estimate what the return on General Electric stock could be given its beta of 1.68. Other data you have collected: the rate of return on 90-day T-Bills is 2%, on 5 year T-Notes is 3%, an..
What is the value of a 5% coupon bond maturing in 30 years if it is priced to yield 8%? Define or describe INTEREST RATE RISK. Be sure to include PRINCIPAL risk and REINVESTMENT risk in your discussion. Briefly compare the equity claims and the debt ..
Determine how much Gibson must reduce its debt in 2005 (for example, through the sale of common stock) to maintain its DCL at the 2004 level.
All else held constant, which one of these is most apt to increase the WACC of a leveraged firm? an increase in the risk-free rate when the equity beta > 1 a decrease in the tax rate an increase in the weight of debt a decrease in the dividend growth..
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd