User Account

All Pages

Prepare a effective cost of debt

Assignment Help Financial Accounting
Reference no: EM132489587

Equit and liabilities are as follow:

18%debentures (shs.1000 at par) 16000

10% preference shares 6250

Ordinary shares(she 10 par) 12500

Rretained earnings 28125

Additional information

1. the debentures are currently selling at shs 950 in the market

2. Company paid dividend of shs 5.00 per ordinary share and they are expected to grow at rate of 10%per annum.

3. the corporate tax is 40%

Required;

Question 1: Effective cost of debt

Question 2: Cost of equity

Question 3: Weighted cost of capital

Reference no: EM132489587

Questions Cloud

What is the amount of the child tax credit : What is the amount of their child tax credit/credit for other dependents (assuming they otherwise qualify for these credits) if their tax liability is $6,198?
How the accounts in the general ledger will be affected : Show how the above transactions will affect the accounting equation and enter how the accounts in the general ledger will be affected.
Determine the nature of disease : a. What tests do you recommend to determine the nature of disease? b. What additional tests do you recommend to confirm your diagnosis?
Approach to treat drug resistant bacterial infections : What are the advantages of using this approach to treat drug resistant bacterial infections? Include reasons considering the use of bacteriophage as sensitive g
Prepare a effective cost of debt : Prepare a Effective cost of debt, Cost of equity, Weighted cost of capital. Company paid dividend of shs 5.00 per ordinary share and they are expected to grow
What type of data or evidence did the chapter presented : What type of data or evidence did the chapter presented that fascinating you. What did you get from the presentation preparation personally? Give examples.
Intoxication and infection in disease : What is the difference between intoxication and infection in disease
What are the journal entries to add to books : Find $100 cash in the register of my company (im a sole trader) that isn't on the books. What are the journal entries to add this $100 to books?
Distinguish between street gangs and organized crime groups : Explain why it may be difficult to define and distinguish between street gangs, organized crime groups, and terrorist groups. What are the differences between.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Estimate the cash flows for the investment

ACC515 - Accounting and Finance - Calculate the value of each investment based on the required rate of return and what required rates of return would make your recommendation indifferent to all three options?

  Determine how many boxes must be sold to breakeven

Potato Chip Manufacturing sells potato chips to groceries. The chips are sold in boxes of 100 bags. Determine how many boxes must be sold to breakeven

  Comparative balance sheet of rodenbeck company

Using the data from the comparative balance sheet of Rodenbeck Company, illustrate vertical analysis.

  Prepare a statement of unrestricted revenues

Prepare a Statement of Unrestricted Revenues, Expenses, and Other Changes in Unrestricted Net Assets together with a Statement of Changes in Net assets.

  What percentage is inventoryies to total current assets

What percentage is inventory(ies) to total current assets? Do you think this percent- age represents the importance of inventory(ies) to the company's operations?

  Conversion costs were incurred in the department

The accounting records indicate that the conversion cost that had been assigned to beginning work in process inventory was $16,940 and a total of $347,320 in conversion costs were incurred in the department during January.

  Evaluate cash flow from operating activities

Determine its cash flow from operating activities for the year. Present your answer in the indirect format for cash flow from operating activities in the statement of cash flows.

  What is the total stockholders equity at the end of month

the company paid 25,000 in debt and 10,000 in salaries expense. What is the total stockholder's equity at the end of the month?

  Determine the equipments book value

Dellroy Rentals Company faced the following situations. Journalize the adjusting entry needed at December 31, 2016, for each situations. Consider each fact seperately. The business has interest expense of $3,200 that it must oay early in January 2017..

  What is the accounting rate of return

What is the accounting rate of return? Compute the accounting rate of return for an investment that requires an initial outlay of $300,000 and promises an average net income of $100,000.

  Distribution from noncontributory-qualified pension plan

Nanette Mcphee receives $100,000 as a lump-sum distribution from a noncontributory, qualified pension plan upon early retirement to start a child care business. If, after receiving the distribution, Nanette decides not to start the business, is she p..

  Will the bond sell at par and a premium or a discount

If the bond contractual interest is 12% and the market interest rate is 10% will the bond sell at par and a premium or a discount?

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