Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
As a member of the finance department of Ranch Manufacturing, your supervisor has asked you to compute the appropriate discount rate to use when evaluating the purchase of new packing equipment for the plant. Under the assumption that the firm's present capital structure reflects the appropriate mix of capital sources for the firm, you have determined the market value of the firm's capital structure as follows:
Source of Capital Market Values
Bonds $4,500,000
Preferred stock $2,100,000
Common stock $6,300,000
To finance the purchase, Ranch Manufacturing will sell 10-year bonds paying 6.6% per year at the market price of $1,029. Preferred stock paying a $1.97 dividend can be sold for $24.14. Common stock for Ranch Manufacturing is currently selling for $54.57 per share and the firm paid a $3.05 dividend last year. Dividends are expected to continue growing at a rate of 5.5% per year into the indefinite future. If the firm's tax rate is 30% what discount rate should you use to evaluate the equipment purchase?
The loan offered by Bank of Florida has a 12.5 percent simple interest rate with annual interest payments, whereas the loan offered by the Bank of Georgia has a 12 percent simple interest rate with monthly payments. Which bank should Vegit use for..
What is Crypton's cost of capital where the firm's tax rate is 30%? Question= what is Crypton cost of capital ---% ?
Why is economic growth important? Why could the difference between the 2.5 percent and 3 percent annual growth rate be of great significance over many decades?
Calculate the return from the stock from the details and what rate of return would you earn
Backwards has $266 million of debt outstanding at an interest rate of 10 percent and $686 million of equity (market value) outstanding. What is the expected return on the equity with this capital structure?
a 10-year 1000 face value bond has an 8.5 annual coupon. the bond has a current yield of 8. what is the bondsyield to
explain how a firm determines the optimal level of current
What is a bank run? What are some possible withdrawal shocks that could initiate a bank run? What feature of the demand deposit contract provides deposit withdrawal momentum that can result in a bank run?
The stocks of Spaulding (S) and Johnson (J) Corporations have the following risk and return statistics: E(rJ) = 14%, ?J = 22%; E(rS) = 16%, ?S = 25%. [Round any calculation to two decimal points]
what are the primary requirements for a successful jit inventory control
question a firm has the following preferred stocks outstandingbullpfd a 32 annual dividend 1000 par value no
1. the most appropriate discount rate to use when applying a fcfe valuation model is the .required rate of return on
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd