What would be the weight used for equity

Assignment Help Finance Basics
Reference no: EM13282857

Team Sports has 4 million shares of common stock outstanding, 2 million shares of preferred stock outstanding, and 20 thousand bonds. If the common shares are selling for $30 per share, the preferred share are selling for $15 per share, and the bonds are selling for 99 percent of par, what would be the weight used for equity in the computation of Team's WACC?

Reference no: EM13282857

Questions Cloud

Determine the annual interest rate : Determine the annual interest rate for your loan using information from a local bank or an internet ad. Reduce this rate by 2%.This is r, but expressed as a decimal.
What will be their optimal cash return point : The trading cost per sale or purchase of marketable securities to be $210 per transaction. What will be their optimal cash return point?
What will be jrs wacc : Suppose that JR Cos. has a capital structure of 80 percent equity, 20 percent debt, and that its before-tax cost of debt is 9 percent while its cost of equity is 15 percent. If the appropriate weighted average tax rate is 30 percent, what will be ..
Compute all sum bits usingthe a fo rementioned carry bits : How many time units would youneed to compute all the carry bits and why. Compute all the sum bits usingthe aforementioned carry bits. How many time units would you needto complete the addition process and why.
What would be the weight used for equity : If the common shares are selling for $30 per share, the preferred share are selling for $15 per share, and the bonds are selling for 99 percent of par, what would be the weight used for equity in the computation of Team's WACC?
How low would the interest rate on the loan : If the interest rate on the $200,000 loan is 12 percent, how low would the interest rate on the loan with the compensating balance have to be in order for you to choose it?
What is the centripetal force that acts on the car : A 1000-kilogram race car is traveling at 60 m/s around a curved section of track that has a radius of 300 m. What is the centripetal force that acts on the car
Why charge is placed in the path of the electromagnetic wave : The average intensity of sunlight reaching the earth is 1390W/m2. A charge of 2.38 x 10-8 C is placed in the path of this electromagnetic wave. What is the magnitude of the maximum electric force that the charge experiences
Show how ethyl ethanoate can be made : Acid halides and Acid anhydrides can also be used to make esters - show how ethyl ethanoate can be made from a) and acid halide and b) an acid anhydride

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the depreciation expense in year 2 for the oven

What is the depreciation expense in year 2 for the oven? Use the straight-line method.

  What is the unlevered value of monopoly

What is the per share value of Monopoly to Best Value Corporation? Assume that Monopoly now has $10.82 million in debt.

  Determine the expected dividend for next three years

Suppose your broker offers to sell you some shares of Swift and Company common stock that has just paid an yearly dividend of $2(yesterday). You expect the dividend to grow at the rate of 5 percent a year for the next 3 years,

  Discuss the factors that lead to a valuation of a company

D iscuss the factors that lead to valuation of a firm's worth compared to that of the financial statements, & how firm executives develop the most value for all stakeholders.

  Which of following is the slope of the security marketline

Which of the following is the slope of the security marketline?

  Old personal loan officer at second national bank

1.Jacqueline Strauss, a 25-year-old personal loan officer at Second National Bank, understands the importance of starting early when it comes to saving for retirement. She has committed $3,000 per year for her retirement fund and assumes that she'll ..

  Increase or decrease marketing spending

Executive Summary: Introduce the current status of your company a brief overview of your company's status. Include the good and the bad.

  What is the required rate of returen

Harrison Clothiers' stock currently sells for $32 a share. It just paid a dividend of $1.25 a share (that is, D0 = 1.25). The dividend is expected to grow at a constant rate of 3% a year.

  Compute the marginal tax rate

The yield on a corporate bond is 10 percent, and it is currently selling at par. The marginal tax rate is 20 percent. A par value municipal bond with a coupon rate of 8.50 percent is available,

  Calculate the simple interest on investment

Calculate the simple interest on a $9,212 investment made for five years at an interest rate of 6.5 percent per year.

  How is the debt ratio affected by the reorganization

Construct a projected income statement. What is the income available to common shareholders after recapitalization?

  Discuss some of the implications of overpaying for company

Discuss some of the implications of overpaying for an acquired company?

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