User Account

All Pages

How much would they have to sell

Assignment Help Finance Basics
Reference no: EM132392748

Suppose that a company's equity is currently selling for $25.25 per share and that there are 3.5 million shares outstanding and 15 thousand bonds outstanding, which are selling at 94 percent of par. If the firm was considering an active change to their capital structure so that the firm would have a D/E of 1.5, which type of security (stocks or bonds) would they need to sell to accomplish this, and how much would they have to sell? (Round your intermediate ratio to 4 decimal places.)

Reference no: EM132392748

Questions Cloud

Summarize the particular type of conflict : Summarize the particular type of conflict that the researcher(s) are addressing. Assess the effectiveness of the research. Are the results helpful.
Price of gasoline to increase : The hybrid has a price tag of $25,000, gets 48 miles per gallon of gas, and will last you 8 years. If you get the hybrid, you will need to replace the batteries
Calculating fees on a loan commitment : During the last year you have had a loan commitment from your bank to fund inventory purchases for your small business.
What are the firm current capital structure weights : Which are selling at 98 percent of par ($1,000), what are the firm's current capital structure weights for equity and debt respectively?
How much would they have to sell : Which type of security (stocks or bonds) would they need to sell to accomplish this, and how much would they have to sell?
What are some reasons why interest rate parity : What are some reasons why interest rate parity may not hold in spite of the economic forces that should ensure the equilibrium relationship?
What is the project payback and npv : The company's WACC is 10% and IRR is 14%. What is the project's payback and NPV?
Government bond price and a corporate bond price : A difference between a government bond price and a corporate bond price is created when the corporate entity defaults.
How the procedures help to build a classroom community : When you observe different teachers, you may notice similarities and differences in their classroom management styles. Creating a learning environment.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money 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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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