Reference no: EM132488823
Capital structure
After financing the expansion, 60 percent of BlueVal's capital equity has an estimated cost of 22.5 percent. 40 percent of BlueVal's capital comes from debt, with half at an interest rate of 10 percent (mortgage rate) and half at 8 percent for the proposed new line of credit. The cost of debt is lower than expected because of the 34 percent expected tax savings.
Capital transaction as of december 31 Proponed new financing Total after new financial
Shareholders' Equity 1,726,883 800,000 2,526,883
Mortagage Outstandings 900,000 900,000
Credit Line 800,000 800,000
Total Capital 2,626,883 1,600,000 4,226,883
Question 1: Weight the individual capital source costs by their percentage in the company's total capital structure. Explain your weightages.
|
Standpoints of marketing-production and finance
: In your answer, include a discussion of the implications from the standpoints of marketing, production, and finance.
|
|
Write your thoughts on target population
: When a study is to be conducted on a target population, it may be impossible to reach the entire group for observation and data collection. Hence the theory.
|
|
Calculate the interest rate for the day note
: Calculate the interest rate for the 30-day note. If the note is $60,000 at 12%, the interest should be $600 ($60,000 x .12 x 30/360). recorded this amount
|
|
What are the health effects on environmental change
: Write a 2-3 page paper on environmental health, the environmental factors that impact health, and your role with improving/ eliminating environmental barriers.
|
|
Explain the weightages
: Weight the individual capital source costs by their percentage in the company's total capital structure. Explain your weightages.
|
|
Discussion about the health related issue
: Create a 5 to 10 slide PowerPoint presentation to deliver your message to the agency/ entity of your choice about the health related issue you want help with.
|
|
Find the value of the bond
: If interest is paid annually, find the value of the bond when the required return (yield to maturity) is (1) 5%, (2) 8%, and (3) 11%?
|
|
What forms of business should sheila consider
: What forms of business should Sheila consider and why? Which form of business is the least likely to meet Sheila's needs?
|
|
How the bond allocation in an individuals portfolio works
: How much in bonds might an investor typically hold when they are 25? What about when they are 65? For an individual investor, do you think this is a good
|