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!
Acort Industries has 10 million shares outstanding and a current share price of $ 38 per share. It also has long-term debt outstanding. This debt is risk free, is four years away from maturity, has an annual coupon rate of 9 % and has a $ 107 million face value. The first of the remaining coupon payments will be due in exactly one year. The riskless interest rates for all maturities are constant at 5.4 %. Acort has EBIT of $ 104 million, which is expected to remain constant each year. New capital expenditures are expected to equal depreciation and equal $ 17 million per year, while no changes to net working capital are expected in the future. The corporate tax rate is 45 %and Acort is expected to keep its debt-equity ratio constant in the future? (by either issuing additional new debt or buying back some debt as time goes on).
a. Based on this information, estimate Acort's WACC.
b. What is Acort's equity cost of capital?
Compare the amount of interest you earn on typical money market investments versus the amount of interest paid on credit cards.
Discuss two strengths and two weaknesses when analyzing residential Mortgage-Backed Securities using a real example.
Twister Cheese Corporation will pay a dividend of $2.00, $3.25, $4.00, and $3.00 during the next four years. You expect the stock price at the end of year four equal to $54. If the discount rate is 12%, what is the value of stock today?
Alice needed capital to expand his business. He borrowed a loan of $20,000,000 from the bank and the load would be compounded monthly at 4.5% p.a. immediately after the loan was incurred. Compute the monthly payment. What was the total interest charg..
Which of the following is not a source of a short term debt? An example of systematic risk is when the company's value decline to. Forecast are often related to sales because
To apply Black-Scholes formula to value series A VC investment with alternative security structure (e.g. PCP with cap), five inputs are needed.
Patterson Brothers recently reported an EBITDA of $9.5 million and net income of $2.4 million. What was its charge for depreciation and amortization?
Suppose Nabisco Corporation just issued a dividend of $1.49 per share yesterday. what is the value of a share of common stock today?
A Step-Up Note is a type of bond with a coupon rate that increases over time according to a contractual schedule as shown below. The Step-Up Note differs from the typical bond because the coupons cannot be treated as an ordinary annuity [a fixed cash..
Pythagoras Jones is a prominent Wall Street analyst. Jones recently announced that he expects Right Triangle Design (RTD) to pay dividends of $5, $12, and $13 over the next 3 years. After that he forecasts 4% growth in perpetuity for RTD. If the appr..
According to your research, the growth rate in dividends for DR Dime for the previous 10 years has been negative 12 percent. If investors feel this growth rate will continue, what is the required return for DR Dime stock?
Kaufman Comapny Balance Sheet follows. Compute the Debt Ratio: ASSETS: Current Assets Cash 13,445. Short-term investments-at cost (approximate market) 5,239. Inventories-at lower of cost (average method) or market: Finished merchandise 113,879
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