Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
McGonnigal, Inc. has expected sales of $40 million. Fixed operating costs are $5 million, and the variable cost ratio is 65 percent. McGonnigal has outstanding a $10 million, 10 percent bank loan and $3 million in 12 percent coupon-rate bonds. McGonnigal has outstanding 250,000 shares of $10 (dividend) preferred stock and 1 million shares of common stock ($1 par value). McGonnigal's average tax rate is 35 percent, and its marginal rate is 40 percent.
a. what is McGonnigal's degree of operating leverage at a sales level of $40 million?
b. what is McGonnigal's current degree of financial leverage?
c. Forecast McGonnigal's EPS if sales drop to $38 million.
Deduce formula for weights of stocks A also B at which variance of portfolio P is minimal.
Explain why the cost of debt is typically different than the cost of equity. Give examples and explain your answers.
If a stock's market price exceeds its intrinsic value as seen by the marginal investor, the the investor will sell the stock until its price has fallen down to the level of the investor's estimate of the intrinsic value.
Describe the term Bond valuation and what coupon rate should be set on the bond with warrants if the total package is to sell for $1,000
At the beginning of the year, a firm has current assets of $323 and current liabilities of $227. At the end of the year, the current assets are $483 and the current liabilities are $267. What is the change in net working capital?
An investor bought hundred shares of Venus Corporation stock 1 year for 40 share. She just sold the shares for 44 each and during the year she received four quarterly dividend checks for $40 each.
All assets are expected to grow proportionately with sales. If Getrag has a net profit margin of 10%, what additional financing will be needed to support the increase in sales? Getrad does not pay dividends.
If the investment plan pays you 10 percent per year for the first 12 years and 6 percent per year for the next 12 years, how much will you have at the end of the 24 years?
The firm's stock price increased 17 percent on the first day of trading. What was the total cost of issuing the securities?
Compute the price of a bond (refer to "semiannual Interest and Bond Prices" in Chapter 10 for review if necessary).
At Takoma Park University, they offer a multitude of courses each quarter. The students pay $1,200 each course. However, Dean Dong realizes that the tuition needs to be increased because of increasing costs.
Which of the following statements is NOT an objective of financial reporting? An increase in inventory balance would be reported in a statement of cash flows using the indirect method
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd