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!
As a membe of the finance department of Ranch Manufacturing, your supervisor has asked you to compute the appropriate discount rate to use when evaluating the purchase of new packaging equipment for the plant. Under the assumption that the firm's present capital structure reflects the appropriate mix of capital sources for the firm, you have determined the market value of the firm's capital structure as follows:
Source of Capital Market Values
Bonds $4,300,000
Preferred Stock $1,800,000
Common stock $ 6,400,000
To finance the purchse Ranch Manufacturing, will sell 10 year bonds paying 7.1% per year at the market price of $1,035. Preferred stock paying a $2.07 dividend can be sold for $24.72. Common stock for Ranch Manufacturing is currently selling for $54.22 per share and the firm paid a $2.94 dividend last year. Dividends are expected to continue growing at a rate of 5.4% per year into the indefinite future. If the firm's tax rate is 30% what discount rate should you use to evaluate the equipment purchase?
9-22 Your rich godfather has offered you a choice of one of the three following alternatives: $10,000 now; $2,000 a year for eight years; or $24,000 at the end of 8 years.
Susan owns a Van Gogh painting valued at 10 million dollar. In addition to painting, Susan owns approximately $15 million of other assets.
A Corporation has an equal number of low-risk projects, average-risk projects, and high-risk projects. The company estimates that the overall company's WACC is 12 percent.
A corporation has a beta of 1.3. The risk free interest rate today is 8 percent and the return on a market portfolio of stocks is 14 percent.
Compute a more correct estimate of portfolio risk
The cost of capital is 14 percent, and the firm's tax rate is 40 percent - Estimate the present value of the tax benefits from depreciation
What are some sources of short-term, medium-term, and long-term international financing? What are the costs associated with each of these sources?
Write down the different kinds of bankruptcy available to businesses? Is one option more ethical than the other?
Calculate the dollar cost of the possible hedges and explain which hedge you would use
After doing some budgeting, you estimate you will need to save $25,000 for first year of graduate school. You plan to save $450 per month in account that earns 7% compounded monthly.
RG is currently all equity financed. It has 10,000 shares of equity outstanding, selling at $100 share. The company is planning capital restructuring. The low debt plan calls for debt issue of $200,000 with the proceeds used to buy back stock.
Suppose the expected returns and standard deviations of stock A and stock B are E(R)=0.15, E(R)=0.25, deviation is A=0.1,B=0.2.
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