What is the firm long-term debt at year-end

Assignment Help Business Management
Reference no: EM132796597

Last year Miami Rivet had $5 million in operating income (EBIT). Its depreciation expense was $1 million, its interest expense was $1 million, and its corporate tax rate was 25%. At year-end, it had $14 million in operating current assets, $3 million in accounts payable, $1 million in accruals, $2 million in notes payable, and $15 million in net plant and equipment. Assume Miami Rivet has no excess cash. Miami Rivet uses only debt and common equity to fund its operations. (In other words, Miami Rivet has no preferred stock on its balance sheet.) Miami Rivet had no other current liabilities. Assume that Miami Rivet only noncash item was depreciation.

Based on this information answer the following questions:

Question: If the firm's after-tax percentage cost of capital is 9%, what is the firm's Long-term debt at year-end?

Reference no: EM132796597

Questions Cloud

Explain the benefits of the securitisation process to : Explain the benefits of the securitisation process to: (i) Originators (ii) Investors.
Has opinion of family been affected by what you have learned : Given the changing nature of family, students will describe what they believe the makeup of the average family of 2070 will be. You will specifically predict.
Which the essence of a financial report audit is to : Which the essence of a financial report audit is to? Examine individual transactions so that the auditor may certify as to their validity
Which of X, Y, and Z is a risk-free security : You are considering combining M with se- curity X, Y, or Z. Which of X, Y, and Z is a risk-free security when considered on a standalone basis
What is the firm long-term debt at year-end : Question: If the firm's after-tax percentage cost of capital is 9%, what is the firm's Long-term debt at year-end?
What is the price-weighted index constructed : a. What is the price-weighted index constructed with the three stocks? B. Assume stock B is split 2 for 1 and stock C 4 for 1, what is the divisor?
Record the transfer of equity on the partnership books : Profits and losses for Red is 60% and 40% for White, respectively. Record the transfer of equity on the partnership books on January 1, 20CY
Calculate the initial-operating and terminal cashflows : a. Calculate the initial, operating and terminal cashflows. b. Calculate the NPV and IRR. Comment if the project should be accepted or not.
Incentive problems within investment practices : Explain how private equity has contributed to solving the sorting and incentive problems within investment practices.

Reviews

Write a Review

Business Management Questions & Answers

  Hesitant to accept the report as presented

The report includes a major marketing activity designed by Student A to promote the new service package of a local company.

  Compelling environmental factor

The most compelling environmental factor that demands immediate response. Explain your answer.

  Characteristics of a good customer record system

Research and locate 7 characteristics of a good Customer Record System (CRS).

  What are the biggest weaknesses of valve

What are the biggest weaknesses of Valve's approach to coordination?

  Calculate the confidence interval for the percentage

Calculate the 95 confidence interval for the percentage of automobile with more than 250 worth of electronic in them using the information in the previous question.

  Why is it often very difficult for supervisors

Why is it often very difficult for supervisors in any culture to provide employees with a negative performance appraisal?

  What strategies could a manager of a child care

What strategies could a manager of a child care center use to increase productivity?

  Foreign owned companies from advertising in russia

You own an American company selling a product in Russia adn the Russian Government passes a law banning all foreign owned companies from advertising in Russia.

  Trends in hr over

Analyze the following trends in HR over the last 10 years in 700 to 1,050 words: Employee experience (culture, work-life)

  Use efficiency or utilization as a measurement tool

If you were an operations manager in any industry what is the muddiest part about determining whether to use efficiency or utilization as a measurement tool

  Compare the present value of option

To make it comparable, you need to assume that Mary will sell her car at the end of 36 month in the case of financing, and compare the present value

  How should inventory be organized in a warehouse

How should inventory be organized in a warehouse (by SKU, size, organized to minimize foot path, organized to minimize shelf space requirements, etc.)?

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