What is the firms net new long-term debt

Assignment Help Financial Management

Reference no: EM13976484

During 2009, Raines Umbrella Corp. had sales of $736,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $574,000, $104,000, and $132,000, respectively. In addition, the company had an interest expense of $100,000 and a tax rate of 35 percent. (Ignore any tax loss carry back or carry forward provisions.) Assume Raines Umbrella Corp. paid out $22,000 in cash dividends. If spending on net fixed assets and net working capital was zero, and if no new stock was issued during the year, what is the firm's net new long-term debt?

Reference no: EM13976484

Questions Cloud

Right to educate their children at home : Do you agree that parents should have the right to educate their children at home? Might this right be in tension with other rights, and if so, how should this tension be resolved? Support your argument using examples and theoretical positions drawn ..

Compute the weights for your company equity : Compute the weights for your company's equity and debt based on the market value of equity and the market value of debt, computed in step 5.

Firm reduced its net working capital investment : The 2008 balance sheet of Maria's Tennis Shop, Inc., showed $2.7 million in long-term debt, $770,000 in the common stock account, and $5.95 million in the additional paid-in surplus account. If the firm's net capital spending for 2009 was $760,000, a..

Construct histograms and a scatterplot of the values : Construct histograms and a scatterplot of the values of your two scales, and compute the correlation between the two scales. (4 points)

What is the firms net new long-term debt : During 2009, Raines Umbrella Corp. had sales of $736,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $574,000, $104,000, and $132,000, respectively. In addition, the company had an interest expense of $100..

What is the book value of assets today : Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $7.2 million. The machinery can be sold to the Romulans today for $4.05 million. Klingon's current balance sheet shows net fixed assets of $3.5 million, current liabilities o..

Tax treatment of ordinary income and that of capital gains : Describe the tax treatment of ordinary income and that of capital gains. What is the difference between the average tax rate and the marginal tax rate? How does the tax treatment of dividend income by the corporation moderate the effects of double ta..

The average cost of those same automobiles : In 2005, selected automobiles had an average cost of $18,000. The average cost of those same automobiles in now $21,960. What was the rate of increase for these automobiles between the two time periods?

What financial issues has growth created : After watching the Finagle a Bagel video, answer the questions below. What financial issues has growth created for Finagle a Bagel? What does Alan mean when he says that the restaurant business is a great top-line business? What does that have to do ..

User Account

All Pages