Calculating capital structure? weights

Assignment Help Finance Basics
Reference no: EM132288846

(Calculating capital structure? weights) Winchell Investment Advisors is evaluating the capital structure of Ojai Foods. ? Ojai's balance sheet indicates that the firm has ?$ 51.33 million in total liabilities. Ojai has only ?$ 41.25 million in? short- and? long-term debt on its balance sheet. ? However, because interest rates have fallen dramatically since the debt was? issued, Ojai's? short- and? long-term debt has a current market price that is 10 percent over its book value or ?$ 45.38 million. The book value of? Ojai's common equity is ?$ 49.54 million but the market value of the equity is currently ?$100.64 million.

What is? Ojai's debt ratio and? interest-bearing debt ratio calculated using book? values? ?(Round to one decimal? place.)

Reference no: EM132288846

Questions Cloud

Describing yourtypefocus personality assessment results : Please write a two to three page reflection describing yourTypeFocus personality assessment results as well as detailing how the knowledge learned from taking.
What is the estimated value of the common stock : The next dividend is expected to be $1.56. If the required return is 9%, what is the estimated value of the common stock?
Create predictive models from observation of how people act : "Current cybersecurity solutions leave a wide gap in coverage," says Doug Clare, vice president for cyber security solutions at analytics software company FICO.
Are there traces of hypervigilant motherwork in these story : How does the documentary, Prison State relate to course readings? Write a comprehensive essay answer substantiating your statements.
Calculating capital structure? weights : Winchell Investment Advisors is evaluating the capital structure of Ojai Foods. ? Ojai's balance sheet indicates that the firm has ?$ 51.33 million in total
What was the total purchase price for this transaction : James Turbyfil purchased 170 shares of stock for $86. James also paid $215 commission. What was the total purchase price for this transaction?
Identify boundaries in advocacy for human service workers : Identify current and future issues in serving diverse clients and legally protected classes. Explain options for advocacy.
Make a schedule of cash receipts for usa apparel : Make a schedule of cash receipts for USA Apparel covering the fourth quarter (October through December). For each of those three months
Explain current and future issues facing correctional : Identify and explain current and future issues facing correctional and court administrators in addressing and managing potential human service needs.

Reviews

Write a Review

Finance Basics Questions & Answers

  How much would sauer food company save in interest

How much would Sauer Food Company save in interest over the three-year life of the computer system if the one-year loan is utilized and the loan is rolled over.

  Estimate barkers net income

(Forecasting net income) In November of each year, the CFO of Barker Electronics begins the financial forecasting process to determine the firm's projected.

  Debt in the computation of farcry wacc

What weight should you use for debt in the computation of FarCry's WACC? (Round your answer to 2 decimal places.)

  Prepare a paper on retirement planning

View the given Seminar on Retirement Planning and write a one page paper, double spaced that summarizes the Seminar and what you learned.

  Accounts receivables from the planned relaxation

A firm is considering relaxing its credit standards which will result in annual sales increasing from $1.50 million to $2.09 million.

  What is the present value of this one-year loan

The interest rate is 6% APR with monthly compounding, and payments begin in one month. What is the present value of this one-year loan?

  Differentiate the dictator and ultimatum games

Differentiate the following terms/concepts: Dictator and ultimatum games, Trust and reciprocity, Conformity and groupthink.

  The principal tool of financial analysis

Financial ratios are the principal tool of financial analysis. Ratios standardize the financial information of firms so comparisons can be made between firms of varying sizes. Choose two firms in the same sector; locate their current financial inf..

  What is du pont analysis of financial statements what is

what is du pont analysis of financial statements? what is du pont chart? explain the various components of return on

  Simplicity printers is considering a project with the

simplicity printers is considering a project with the following cash flowsinitial outlay 126000cash flows year 1

  Computing weighted-average direct manufacturing labour rate

By using above information, what weighted-average direct manufacturing labour rate must you use in making your manufacturing direct labour cost objective?

  What will the cash flows for this project be

The firm has a tax rate of 35 percent, an opportunity cost of capital of 12 percent, and it expects net working capital to increase by $100,000 at the beginning of the project.

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd