The manager of sensible essentials conducted an excellent

Assignment Help Finance Basics

Reference no: EM13394590

The manager of Sensible Essentials conducted an excellent seminar explaining debt and equity financing and how firms should analyze their cost of capital. Nevertheless, the guidelines failed to fully demonstrate the essence of the cost of debt and equity, which is the required rate of return expected by suppliers of funds.

You are the Genesis 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 10-12-slide presentation in PowerPoint format. Perform your calculations in an Excel spreadsheet. Cut and paste the calculation into your presentation. Include speaker's notes to explain each point in deta

Reference no: EM13394590

Questions Cloud

Explain what cultural barriers and diversity issues are : ppq parts has determined that for the company to expand globally over the next several years its managers must be

Few games of strategy are cooperative one example is : some games of strategy are cooperative. one example is deciding which side of the road to drive on. it doesnt matter

What must be the map coordinates of the new factory graph : a manufacturer of oak barrels has factories in an area at the location coordinates provided in the following table.

Develop an argument supporting use of flexible-budget : develop an argument supporting the use of flexible-budget variance analysis to control the costs of activity areas in

The manager of sensible essentials conducted an excellent : the manager of sensible essentials conducted an excellent seminar explaining debt and equity financing and how firms

Part a give mr wilson with three possible growth strategies : sources must be cited in apa format. your response should be a minimum of one 1 single-spaced page to a maximum of two

Analyze the strategic marketing planning process strategies : write a six to eight 6-8 page paper in which you1.briefly describe the country that you have selected using the facts

Do increasing marginal costs result from rising wages of : 1. can you think of an example of how you or someone you know has experienced economic rent as a measure of labor

Timber king is a new midwest company in the portable saw : sources must be cited in apa format. your response should be a minimum of one 1 single-spaced page to a maximum of two

User Account

All Pages