Equity capital structure and considering new structure

Assignment Help Financial Management
Reference no: EM131067453

Petty currently has all equity capital structure and considering new structure with 30% debt. 3000 common shares outstanding with total market value of 150,000. interest rate on new debt =14%. how to calculate interest, net income, EPS, and ROE for EBIT of 20,000, 35,000, and 50,000

Reference no: EM131067453

Questions Cloud

Account paying interest convertible monthly : David makes a sequence of 38 monthly deposits of $450 each into an account paying interest convertible monthly. Immediately after making the 38th deposit, the account balance is $18870.45 dollars. What is the nominal rate of interest convertible mont..
What amount of interest rebate will the bank receive : The American Commerce Bank (ACB) lends $1.25 million to Unity International Company for 3 months. The bank usually changes a rate of LIBOR plus 3 percent to companies with similar credit ratings. What amount of interest rebate will the bank receive, ..
Average velocity for the whole trip : a) What is the velocity of the car when it is 50 meters in the negative x direction of where it initially started? b) What is the average velocity for the whole trip?
What kind of trend or grouping do you see in the given areas : What kind of trend or grouping do you see in the areas where there are the most threatened or endangered species?
Equity capital structure and considering new structure : Petty currently has all equity capital structure and considering new structure with 30% debt. 3000 common shares outstanding with total market value of 150,000. interest rate on new debt =14%. how to calculate interest, net income, EPS, and ROE for E..
Show on average consistently positive abnormal returns : Prices of stocks before stock splits show on average consistently positive abnormal returns. Is this a violation of the EMH? Why?
Access to the internet : You turn on your home computer to submit your NATS 1840 homework only to discover that you have no access to the Internet. Suggest one scientific (testable) hypothesis, that you could test at home,
Prepare cash budget-starts selling on credit basis : Dorothy K leased space . Runs out of cash. Late payments on orders, problems with suppliers. Planning to borrow $. Cash budget : Sales are made based on cash only. purchases must be aid during following month. Prepare cash budget for Dec Jan Feb. Sup..
What is the role of the diaphragm in breathing : What is the role of the diaphragm in breathing? What structure in the nasal cavity serves to increase the surface area of the mucosa exposed to air? Which of the following describes structures from the conduction zone?

Reviews

Write a Review

Financial Management Questions & Answers

  Section of the course in the context of the size of a firm

Most of the examples in the text are medium or large companies. Think about the concepts of risk which are part of this section of the course in the context of the size of a firm. Would these change if the firm were large? Small ?  Medium-sized? Any ..

  What is its current stock price

The last dividend paid by Florida Gator Inc. was $1.25. The dividend growth rate is expected to be constant at 15% for 3 years, after which dividends are expected to grow at a constant rate of 6% forever. If the firm’s required return (Rs) is 11%, wh..

  Accounts receivale collecetion period and discount kitkat

kitkat tools are considering offering a cash discount to speed up the collection of accounts receivable. currently the

  What is the required rate of return on a stock with a beta

ssume that the risk-free rate is 6.5% and that the market risk premium is 5%. What is the required rate of return on a stock with a beta of 0.9? What is the required rate of return on a stock with a beta of 1.7?

  What earnings before interest and tax must the firm

MassNet Corporation has 6.65 million shares outstanding and debt with interest payments of $1.53 million. What earnings before interest and tax (EBIT) must the firm have if it were to provide $1 per share to the shareholders? Assume perfect markets.

  How much money would be needed to pay the cost of replanting

The local botanical society wants to ensure that the gardens in the town park, are properly cared for. They recently spent $100,000 to plant the gardens. They would like to set up a perpetual fund to provide $100,000 for future replanting of the gard..

  Predicated on a tax court case-the income doctrine

Predicated on a tax court case, one of the below doctrines was disallowed. What strategy was employed and how was it conducted. based on several important doctrines. The assignment of income doctrine - states that income must be taxed to the entity t..

  What is weighted average cost of capital

Union Brick Inc. (UBI) has a total market value of $200 million, consisting of 2 million shares of common stock selling for $50 per share and $100 million of 10 percent perpetual bonds currently selling at par. What is UBI's weighted average cost of ..

  What is the net operating profit after taxes

Using Rhodes Corporation’s financial statements (shown below), answer the following questions. What is the net operating profit after taxes (NOPAT) for 2010? What are the amounts of net operating working capital for both years? What are the amounts o..

  Defined as the par value of common stock

What is the maximum amount that Beta Corporation can pay in cash dividends, without impairing its legal capital, if it is headquarter in a U.S. state where capital is defined as the par value of common stock?

  Earning a real rate of return on an investment

If the current inflation rate is 4.2% and you are earning a real rate of return on an investment of 3.8%, then the nominal rate on this investment is closest to __________.

  A project will produce an operating cash flow

A project will produce an operating cash flow of $31,200 a year for 7 years. The initial fixed asset investment in the project will be $204,900. The net after tax salvage value is estimated at $62,000 and will be received during the last year of the ..

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