Cost of debt and equity

Assignment Help Business Management
Reference no: EM131268209

Cost of Debt and Equity

You are the Genesis Energy accountant and have taken a class recently in financing. You agree to prepare a PowerPoint presentation of approximately 6-8 minutes using the examples and information below:

Debt: Jones Industries borrows $600,000 for 10 years with an annual payment of $100,000. What is the expected interest rate (cost of debt)?

Internal common stock: Jones Industries has a beta of 1.39. The risk-free rate as measured by the rate on short-term US Treasury bill is 3 percent, and the expected return on the overall market is 12 percent. Determine the expected rate of return on Jones's stock (cost of equity). Here are the details:

Jones Total Assets

$2,000,000

Long- & short-term debt

$600,000

Common internal stock equity

$400,000

New common stock equity

$1,000,000

Total liabilities & equity

$2,000,000

Develop a 9-11 slide presentation in PowerPoint format. Perform your calculations in an Excel spreadsheet. Cut and paste the calculations into your presentation. Include speaker's notes to explain each point in detail. Apply APA standards to citation of sources.

Reference no: EM131268209

Questions Cloud

Write a linear equation that expresses true airspeed t : Write a linear equation that expresses true airspeed T (in miles per hour) in terms of altitude A (in thousands of feet).- What would be the true airspeed of the aircraft at 6,500 feet?
Find the position and value of maximum temperature : Heat is generated uniformly in a stainless steel plate having thermal conductivity of 20 W/m·K. The thickness of the plate is 10 mm and heat generation rate is 500 MW/m3.
Write a linear equation that expresses n in terms of t : If N represents the average number of persons per household and t represents the number of years since 1980, write a linear equation that expresses N in terms of t.
Labor cost would be included in company flexible budget : Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows: Direct materials: 5 pounds at $8.00 per pound $ 40.00 Direct labor: W..
Cost of debt and equity : You are the Genesis Energy accountant and have taken a class recently in financing. You agree to prepare a PowerPoint presentation of approximately 6-8 minutes using the examples and information below:
What is the angle of the ply : An angle glass/epoxy lamina is subjected to a shear stress txy = 0.4ksi in the global axes resulting in a shear strain ?xy = 468.3 µin./in.in the global axes. What is the angle of the ply? Use the propertiesof unidirectional glass/epoxy lamina fro..
Write a linear equation that expresses i in terms of t : If I represents the median household income and t represents the number of years since 1990, write a linear equation that expresses I in terms of t.
Promotability of inside candidates for a firm : Which of the following refers to company records showing present performance and promotability of inside candidates for a firm's top positions?
Madison hotels sells a foreign organization : Madison Hotels sells a foreign organization the rights to use its brand name and operating know-how in return for a lump-sum payment and a share of the profits. Which of the following strategy is Madison pursuing?

Reviews

Write a Review

Business Management Questions & Answers

  Explain why william clay ford made million as ceo

Explain why is it easier to explain a $2 million payout to a sports professional for working 4 days to win a Masters Championship than it is to Explain why William Clay Ford made $30 million as CEO of Ford Motor Corporation?

  Discuss the main reasons why a business

Discuss the main reasons why a business should or should not be involved in political discussions or take a political stand. Use terms found in Chapter 9 to demonstrate your understanding of the material.

  Ethical dilemma directing the directors

One critical structural element of most corporations is the board of directors. In principle, chief executives report to the directors. In practice, however, boards do not always function as you might expect.

  What has been the effect of aggressive competitor pricing

Comment on the impact of the more highly aggressive pricing strategies used by competitors. What has been the effect of aggressive competitor pricing on your results (profitability, market share, cost to consumer, etc.)

  Food and beverage management techniques1 what regulatory

food and beverage management techniques1. what regulatory agencies monitor the food and beverage industry? what effect

  Analyze the integrated business communication process

Identify the Web site, the sender, and perceived receiver. Analyze the integrated business communication. Assess the media richness of the section.

  Advantages and disadvantages of easily obtainable info

What are the advantages and disadvantages of easily obtainable information? What are the advantages and disadvantages of social media? How might knowing these advantages and disadvantages alter how a person might use social media? What credibilit..

  Role that challenge administrators play in the osha

Describe the role that Challenge Administrators play in the OSHA? Describe the role that Challenge Administrators play in the OSHA Challenge voluntary cooperative program?

  Competitive strategy is huen software implementing

Huen Software, an application provider to the gaming industry, decided to increase its portfolio by developing 3-D graphics-supported games for the mobile-gaming industry. By doing this, which competitive strategy is Huen Software implementing?

  Presentation on a transportation-related topic

Create and submit a short PowerPoint presentation on a transportation-related topic of your choice. At least six slides must be present and the entire presentation must contain a minimum of:

  Everything about labor-employment law

For this writing assignment, examine how the Internet has impacted everything about labor, employment law, commerce, and employment. Take one or more of the questions below and develop a 250-word essay. Use your creativity, as the Internet has cha..

  Explain the importance of teamwork in the workplace

Explain the importance of teamwork in the workplace. Identify strategies for effective team communication and Identify strategies for effective team collaboration.

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