Reference no: EM13695392
Problem 9-16 Market Value Capital Structure Suppose the Schoof Company has this book value balance sheet: Current assets $30,000,000 Current liabilities $10,000,000 Fixed assets 50,000,000 Long-term debt 30,000,000 Common stock (1 million shares) 1,000,000 Retained earnings 39,000,000 Total assets $80,000,000 Total claims $80,000,000 The current liabilities consist entirely of notes payable to banks, and the interest rate on this debt is 7%, the same as the rate on new bank loans. These bank loans are not used for seasonal financing but instead are part of the company's permanent capital structure. The long-term debt consists of 30,000 bonds, each with a par value of $1,000, an annual coupon interest rate of 8%, and a 15-year maturity. The going rate of interest on new long-term debt, rd, is 10%, and this is the present yield to maturity on the bonds. The common stock sells at a price of $54 per share. Calculate the firm's market value capital structure. Round your answers to two decimal places. Short-term debt $ % Long-term debt $ % Common equity $ % Total capital $ %
|
What is the change in the average kinetic energy per atom
: A gas cylinder contains argon atoms (m = 40.0 u). The temperature is increased from 273 K (0°C) to 365 K (92°C). What is the change in the average kinetic energy per atom
|
|
What is the difference between areas
: A circular hole of radius 8.468x 10-1 cm must be cut into the front panel of a display unit. What is the difference between the actual area and the desired area of the hole
|
|
Bob katz and sally mander are a married couple
: Bob Katz and Sally Mander are a married couple with four children. Total wages for 2013 equaled $96,400. Stock which had been purchased nine months earlier was sold for a $2,000 gain and stock held for three years was sold for a $7,000 gain. I..
|
|
Determine the angle between the original two vectors
: A vector that is 7.5 units long and a vector that is 5.7 units long are added. Their sum is a vector 9.7 unit long. determine the angle between the original two vectors
|
|
Market value capital structure suppose the schoof company
: Problem 9-16 Market Value Capital Structure Suppose the Schoof Company has this book value balance sheet: Current assets $30,000,000 Current liabilities $10,000,000 Fixed assets 50,000,000 Long-term debt 30,000,000 ..
|
|
How many times more brain cells does a dog have than a cat
: Assume a dog's brain is twice as great in diameter as a cat's, but each animal's brain cells are the same size and their brains are the same shape. how many times more brain cells does a dog have than a cat
|
|
What is the speed of the stream of water leaving the hose
: Heavy rains have flooded your professor's basement to a depth of 6 cm. This basement is 12 m by 10 m in area. What is the speed of the stream of water leaving the hose
|
|
Did the profit meet its desired roi
: The investment in a new cath lab was $950,000 in equipment costs and $50,000 in renovation costs. A desired ROI is 12%. Once the lab was operating, 7,000 patients were served in the first year and were charged $640 for each procedure. The a..
|
|
Obtain what is the magnitude of the net electric field
: Two particles are fixed to an x axis: particle 1 of charge -3.84 x 10-7 C is at the origin and particle 2 of charge +3.84 x 10-7 C is at x=14.3cm. What is the magnitude of the net electric field
|