User Account

All Pages

What is the firms market value capital structure

Assignment Help Financial Accounting
Reference no: EM132505245

Hankins Corporation has 6.3 million shares of common stock outstanding, 318,000 shares of 4.6 percent preferred stock outstanding, par value of $100, and 71,000 5.7 percent semiannual bonds outstanding, par value $2,000 each. The common stock currently sells for $74.10 per share and has a beta of 1.15, the preferred stock currently sells for $101.40 per share, and the bonds have 22 years to maturity and sell for 95.9 percent of par. The market risk premium is 6.7 percent, T-bills are yielding 3.3 percent, and the firm's tax rate is 24 percent.

Question 1: What is the firm's market value capital structure? market value weight of debt? market value weight of perfered stock? market value of weight of equity?

Question 2: What is the firm's cost of each form of financing? after tax cost of debt? cost of perfered stock? cost of equity?

Question 3: If the firm is evaluating a new investment project that has the same risk as the firm's typical project, what rate should the firm use to discount the project's cash flows? weighted avg cost of captial?

Reference no: EM132505245

Questions Cloud

Describe in brief the health behavior you selected : The predisposing, reinforcing, and enabling constructs in educational diagnosis and evaluation (PRECEDE), along with the policy, regulatory, and organizational.
What is the company cost of each form of financing : What is the company's cost of each form of financing? cost of equity? aftertax cost of debt? cost of perfered stock? Calulate WACC?
Is the demand for alcohol elastic or inelastic : Is the demand for alcohol elastic or inelastic? Explain. How are your answers to Question 2 and 3 affected by the price elasticity of demand?
Describe individual mental health disorders : Though the philosophy and values surrounding couple and family counseling emphasize prevention and wellness, awareness of diagnosis is important.
What is the firms market value capital structure : What is the firm's market value capital structure? market value weight of debt? market value weight of perfered stock? market value of weight of equity?
In your opinion who has a better strategy for the people : In your opinion who has a better strategy for their people and economy? How has or has this pandemic taught you that about differences between race and economy?
What did you think and feel about the advertisement : For this Discussion, select an advertisement about body image, weight, food, an so forth, in today's media. Think about your reactions to the advertisement.
What steps can take to reduce bad debt customers : What steps can you take to reduce bad debt customers? How profitable is your business, or will it be, after you take into consideration costs of goods sold
How you can use the evidence-based approach to design : Explain how you can use the evidence-based approach to design or propose a practical tactic to the public health problem, issue, situation, or concern.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Illustrate what will appear on fun-based financial

Assuming that the landfill is recorded within the general fund, illustrate what will appear on the fun-based financial statements for this landfill for the year ended December 31, 2010?

  Earnings before interest

What are earnings before interest and taxes-Earnings before interest and taxes

  About the without recourse

Pete Payee specially indorses a note payable to his order and also uses the words "without recourse." What is the effect of the words "without recourse" here?

  Prepare journal entries to record the credit sales

Prepare journal entries to record the credit sales, the collections on account, and the preceding transactions and adjustment.

  How many shares has the company authorized

Suppose a company selling stock for the first time decides that the maximum number of shares that can ever be sold is 44,000. Of that amount, 22,000 shares are sold to the public. After the initial sale, 17,600 shares were reacquired by the company. ..

  Estimate cost of goods sold and the cost of the july

Estimate cost of goods sold and the cost of the July 31 ending inventory using the retail method of evaluation. (Omit the "$" sign in your response.)

  Prepare the journal entry on rochesters books

The land has a book value of $90,000 and a fair value of $140,000. Prepare the journal entry on Rochester's books for debt settlement.

  Principle of exceptions

The principle of exceptions allows managers to focus on correcting variances between

  Prepare the appropriate journal entries

On January 1, 2016, Cobbler Corporation awarded restricted stock units (RSUs) representing 30 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within three years. Determine the total compensation..

  What is the break-even point in unit sales for each product

What is the break-even point in unit sales for each product? If the company sells exactly the break-even quantity of each product, what will be the overall profit of the company?

  Grania companys income statement

Prepare the operating activities section of the statement of cash flows using the direct method - Grania Companys income statement contained the condensed information.

  A major perspective on accounting financial reporting

a major perspective on accounting financial reporting regulation views regulation as being required to protect the

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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