Reference no: EM133019117
Questions -
Q1. Futamaki Inc has a Weighted Average Cost of Capital (WACC) of 6.3% and tax rate of 30%. What is the cost of equity if the after Tax Cost of Debt is 3.5% and the debt to equity ratio is .6?
Q2. Brinkmanship Corp. wants to know what their cost of equity would be if the company Beta is 2.25, the market risk premium is 7% and Government T-bills are yielding 4.5%
Q3. Sukdeev is looking for a mortgage. He goes to the bank and they tell him that the rate is 4% with quarterly payments. Since he took Managerial Finance he knows that this is the APR. What would be Sukdeev's EAR?
Q4. Dhinny Corp is a manufacturer of BBQ's. Many people enjoy a good piece of meat and are willing to pay a premium for their products. Each BBQ sells for $425 and it only costs $190 to produce these products. This year the company sold 5,000 units, it had $190,000 CCA with a tax rate of 45%.What is Net Income?
Q5. Pastaja Inc is a company that produces fireworks. Your friend Bill is looking to purchase the company stock, and wants to know what the current share price is. The company is planning to pay a $5 dividend in eight years from now and will increase the dividend 4% per year thereafter. The required rate of return is 11%. What is the current share price?
Q6. Enrique Corado is looking for investment advice. He wants to invest in Bombardier as he believes that there are significant growth opportunities with that company. He notices that there is both a Class A share , which carries voting rights of 10 votes per share but receives no dividends, and Class B share, which carries voting rights of one vote per share and pays dividends whenever they are declared by the board. Which should Enrique be willing to pay more for and why would that be?
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What is the maximum price you should pay
: You have offered to invest in preferred stock that promises $7 dividends for perpetuity, what is the maximum price you should pay
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Determine the allocation to finished goods
: Total product costs for the fishing department amounted to $213,800. Determine the Allocation to finished goods
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What amount of gain must travis recognize
: Travis transfers land with a fair market value of $125,000, What amount of gain must Travis recognize as a result of this transaction
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How much of the refund
: Last year Bill claimed itemized deductions of $14,000 (the standard deduction for last year was $12,200). How much of the refund
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What would be sukdeev ear
: Sukdeev is looking for a mortgage. He goes to the bank and they tell him that the rate is 4% with quarterly payments. What would be Sukdeev EAR
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Prepare concord journal entries
: On January 1, 2020, Concord Animation sold a truck to Peete Finance for $36,000 and immediately leased it back. Prepare Concord journal entries
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Provide journal entries to account for bob ltd transactions
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What is the expected rate of return on the stock
: If the stock currently sells for $24.00 per share, what is the expected rate of return on the stock
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Calculate the cash received from customers
: The 2021 balance sheet showed customers owned the business $6 700 from credit sales. Calculate the cash received from customers
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