Reference no: EM13917553
The assets of Dallas & Associates consist entirely of current assets and net plant and equipment. The firm has total assets of $2.4 million and net plant and equipment equals $2.1 million. It has notes payable of $150,000, long-term debt of $755,000, and total common equity of $1.45 million. The firm does have accounts payable and accruals on its balance sheet. The firm only finances with debt and common equity, so it has no preferred stock on its balance sheet.
Write out your answers completely. For example, 25 million should be entered as 25,000,000.
What is the company's total debt?
$
What is the amount of total liabilities and equity that appears on the firm's balance sheet?
$
What is the balance of current assets on the firm's balance sheet?
$
What is the balance of current liabilities on the firm's balance sheet?
$
What is the amount of accounts payable and accruals on its balance sheet? [Hint: Consider this as a single line item on the firm's balance sheet.]
$
What is the firm's net working capital?
$
What is the firm's net operating working capital?
$
What is the monetary difference between your answers to part f and g?
$
What must be the opportunity cost of capital
: A stock sells for $60. The next dividend will be $3 per share. If the return on equity ROE is a constant 10% and the company reinvests 40% of earnings in the firm, what must be the opportunity cost of capital?
|
What is the aftertax cost of the zero coupon bond
: Jiminy's Cricket Farm issued a 30-year, 7 percent semiannual bond 8 years ago. The bond currently sells for 86 percent of its face value. The book value of this debt issue is $106 million. What is the aftertax cost of the 7 percent coupon bond? What ..
|
What is the amount the state will offer for settlement today
: Barb Muller wins the lottery. She wins $20,000 per year to be paid for 10 years. The state offers her the choice of a cash settlement now instead of the annual payments for 10 years. If the interest rate is 6%, what is the amount the state will offer..
|
Balances assets with their sources of debt-equity financing
: A balance sheet balances assets with their sources of debt and equity financing. If a corporation has assets equal to $6,900,000 and a debt ratio of 73%, how much debt does the corporation have on its books?
|
What is balance of current liabilities on firm balance sheet
: The assets of Dallas & Associates consist entirely of current assets and net plant and equipment. The firm has total assets of $2.4 million and net plant and equipment equals $2.1 million. It has notes payable of $150,000, long-term debt of $755,000,..
|
Prepare cash budget and cash inflows
: Unified Path gives a $93,000 grant to Care for the Homeless at the start of its fiscal year on January 1. To expand its activities, Care for the Homeless also convinces the city, state, and county governments to give it additional funds for the year...
|
After-tax percentage cost of capital
: Britton Industries has operating income for the year of $3,500,000 and a 38% tax rate. Its total invested capital is $18,000,000 and its after-tax percentage cost of capital is 6%. What is the firm’s EVA?
|
What is the expected return of portfolio invested
: Stock A has an expected return of i4% and a standard deviation of 35%. Stock B has an expected return of 20% and a standard deviation of 65%. The correlation coefficient between Stocks A and B is 0.2. What is the expected return of a portfolio invest..
|
Remodeling and expansion project
: Home Place Hotels, INC. is entering into a 3-year remodeling and expansion project. The construction will have a limiting effect on earnings during that time, but when it is complete, it should allow the company to enjoy much improved growth in earni..
|