User Account

All Pages

How much would it have to sell

Assignment Help Corporate Finance
Reference no: EM13949431

Lil John Industries' equity is currently selling for $46 per share and there are 2.1 million shares outstanding. The firm also has 38,000 bonds outstanding, which are selling at 113 percent of par. Suppose that Lil John is considering an active change to its capital structure so that the firm would have a D/E of 1.3. 

Required: 

Which type of security (stocks or bonds) would Lil John need to sell to accomplish this, and how much would it have to sell? (Enter your answer in dollars not in millions. Omit the "$" sign in your response.)

Reference no: EM13949431

Questions Cloud

Accounting for inventory using the perpetual inventory : Accounting for inventory using the perpetual inventory system FIFO, LIFO and the weighted average Fit world began January with merchandise inventory of 80 crates of vitamins that cost a total of $4,000.
What are triggers & why they important in database systems? : Provide an example of a situation where a trigger would be appropriate.
A lower market rate is no guarantee that managers : Thesis: A lower market rate is no guarantee that managers should undertake a bond refunding.
Prepare journal entries on arnold limited : Prepare journal entries on Arnold Limited's books assuming that Sales and receivable are entered at a gross selling price.
How much would it have to sell : Which type of security (stocks or bonds) would Lil John need to sell to accomplish this, and how much would it have to sell? (Enter your answer in dollars not in millions. Omit the "$" sign in your response.)
Appropriate output decision from system analyst perspective : A summary report of the company's financial situation is needed by a key decision maker, who will use it when presenting a proposal to potential external backers.
Is higgins liable for glenwood''s malpractice explain : Two lawyers, Glenwood and Higgins, formed a partnership. Glenwood failed to file Client's paperwork on time in a case, with adverse financial consequences to Client.
The three potential conflicts of interest : What are the three potential conflicts of interest that can take place during the auditing process? Explain.
Design an information system for grades, review &management : Design an information system for grades, review and management to be used by faculty, department administration and students.

Reviews

Write a Review

Corporate Finance Questions & Answers

  Compute the annual rate of return and cash payback period

Compute the annual rate of return. Compute the cash payback period. Compute the net present value assuming a 12% required rate of return. Determine the internal rate of return.

  Prepare the manufacturing overhead budget for the year

Atlanta Company is preparing its manufacturing overhead budget for 2014. Prepare the manufacturing overhead budget for the year, showing quarterly data.

  Find the time interest earned ratio

Selection of optimal source of finance and calculating times interest earned ratio - Suppose Morton adopts Plan 2, and the Boston facility initially operates at an annual EBIT level of $6 million. What is the time interest earned ratio?

  Construct a pro forma income statement for 2002

Calculate the direction and magnitude of the percentage price change due to the change in yield and construct a pro forma income statement for 2002, assuming the financing plan is adopted.

  Calculation of increase in net income using ratio

calculation of increase in net income using ratio analysisall questions relate to the kimberly-clark corp. annual

  You are the executive officers of big buns inc bbi bbi

you are the executive officers of big buns inc. bbi. bbi manufactures different types of chairs and accessories. you

  On 142008 mrs parul commenced business she did not maintain

on 1.4.2008 mrs. parul commenced business. she did not maintain proper books of accounts. at the end of the year

  Evaluate how much will the father have to save

Evaluate how much will the father have to save each year before the time his daughter starts college in order to put her through school?

  Anicek corp is experiencing rapid growth dividends are

anicek corp. is experiencing rapid growth. dividends are expected to grow at 28 percent per year during the next three

  Financial analysis report driven by rigorous ratio analysis

Financial analysis report driven by rigorous ratio analysis

  What would be the effect on the net present value

what would be the effect on the net present value of the project and what would your selling price have to be to generate a net present value of $150,000 at a 15% discount rate?

  Multiple choice questions on finance

The KPMM Accounting company buy 10 laser toner cartridges for 60 dollar each for a total of 600 dollar on June 1 and recorded buy as an asset.

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