What are the firm current capital structure weights

Assignment Help Financial Management
Reference no: EM131929130

Suppose that Lil John Industries' equity is currently selling for $41 per share and that 2.4 million shares are outstanding. The firm also has 34,000 bonds outstanding, which are selling at 102 percent of par. What are the firm's current capital structure weights? Do not round intermediate calculations and round your final answer to 2 decimal places.)

             Capital Structure Weights

Equity     ______%

Debt      ________%

Reference no: EM131929130

Questions Cloud

Difference between direct quotes and paraphrases : What is the difference between direct quotes and paraphrases? When would it be appropriate to use a direct quote versus a paraphrase?
Analyze the differences between ethical and legal reasoning : MN506- Analyze the differences between ethical and legal reasoning and apply an ethical-legal reasoning model in the case study to create a basis for a solution
What is dreyfuss breakeven level of revenue : Dreyfuss makes earplugs that they sell for $1 each. What is Dreyfuss' breakeven level of revenue? Which costs are considered Fixed Costs
Describe a work group for primary-age children : How does stress affect emotional development in primary-age children?Describe a work group for primary-age children.
What are the firm current capital structure weights : The firm also has 34,000 bonds outstanding, which are selling at 102 percent of par. What are the firm's current capital structure weights?
What issues you think become increasinly important to hrm : Moving forward with the knowledge you have gained from this course. What issues do you think will become increasinly important to HRM: explain your answer.
How would you handle the meeting with donna : 1. How would you handle the meeting with Donna? What kind of preparations would you make? What precautions would you take, if any?
What is the firm sustainable growth rate : Plank’s Plants had net income of $9,000 on sales of $80,000 last year. What is the firm’s sustainable growth rate?
What role does social security play in employee retirement : What role does Social Security play in employee retirement? What is the relationship between FICA, ERISA, and Social Security?

Reviews

Write a Review

Financial Management Questions & Answers

  Find risk-neutral probabilities governing movement of stock

Assume KBC stock is currently at S = $100. After one period, the price will move to one of the following two values: [uS and dS], where [u = 1.2; d = 0.9]. A $1.00 investment in the risk-free asset using continuous compounding will return $1.10 at th..

  Determine the present value

Determine the present value of $5,000 is received in the future at the end of each indicated time. In each of the following situations 5% for 10 years 7% for 7 years 9% for 4 years

  Networking capital funding need

JohnBoy industries has a cash balanced of $52,000 accounts payable of $132,000, How much net working capital does the firm need to fund?

  Compute inventory

Compute Inventory.

  Financial leverage impacts the performance of firm

The value of a firm is maximized when the. Financial leverage impacts the performance of a firm by.

  What is yield to maturity on the bonds

ABC Corporation has outstanding bonds with an annual 11 percent coupon. Interest is paid semiannually. The bonds have a par value of $1,000 and a price of $1,150. The bonds will mature in 12 years. What is the yield to maturity on the bonds?

  Problem leverage-long-term debt-equity ratio

A firm has a long-term debt-equity ratio of .4. Shareholders’ equity is $1 million. Current assets are $200,000, and the current ratio is 2. The only current liabilities are notes payable. What is the total debt ratio?

  Elements are needed to value resource when using cash flows

Provide the rationale for using expected free cash flow in valuation. What three elements are needed to value a resource when using cash flows?

  Consider the two mutually exclusive projects

Consider the following two mutually exclusive projects: Cash Flows ($) Calculate the NPV of each project for a discount rate of 14%. What is approximately the IRR for each project individually?

  What is the future value of the premiums

An insurance salesman offers you Cash Value life insurance policy for $250,000 for monthly premiums of $150. What is future value of premiums when you turn 95.

  Cross border acquisitions by multinational corporations

What are the conditions that affect the success or lack of success in cross border acquisitions by multinational corporations? Give an example

  About the annuities

You are saving for the college education of your two children. You will make your last deposit when your oldest child enters college.

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!

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