The weight used for equity in the computation of town

Assignment Help Financial Management
Reference no: EM131188508

Town Crier has 10.8 million shares of common stock outstanding, 2.8 million shares of preferred stock outstanding, and 18.00 thousand bonds. If the common shares are selling for $28.80 per share, the preferred shares are selling for $16.30 per share, and the bonds are selling for 96.92 percent of par, what would be the weight used for equity in the computation of Town Crier's WACC?

Reference no: EM131188508

Questions Cloud

What is the depreciation tax shield for this project : Your firm needs a machine which costs $130,000, and requires $28,000 in maintenance for each year of its 3 year life. After 3 years, this machine will be replaced. The machine falls into the MACRS 3-year class life category. Assume a tax rate of 35% ..
Write an autobiography essay : Write an autobiography essay. - Write about the life of a soldier in the military.
The investment timing decision relates to : The investment timing decision relates to:
What possible resources exist for to deal with new challenge : Identify two resources (give link or specific information so the readers can research them as well) and provide how each might be useful to you as a manager in the workplace. Include your thoughts on the credibility of the sources and any limitati..
The weight used for equity in the computation of town : Town Crier has 10.8 million shares of common stock outstanding, 2.8 million shares of preferred stock outstanding, and 18.00 thousand bonds. If the common shares are selling for $28.80 per share, the preferred shares are selling for $16.30 per share,..
Neither leslie not marti are entitled to the dividend : Leslie purchased 100 shares of GT, Inc. stock on Wednesday, July 7th. Marti purchased 100 shares of GT, Inc. stock on Thursday, July 8th. GT declared a dividend on June 20th to shareholders of record on July 12th and payable on August 1st. Neither Le..
Compute the enthalpy of formation of 1 g starch : heat evolved on combustion of 1 kg starch ( C6H10 O5 ) into CO2 and H2O ( L ) is 17. 49 kj / kg . compute the enthalpy of formation of 1 g starch . given Del Hf of H20 ( L ) = - 285.85 KJ /MOL Del Hf of CO2 = - 293.7 KJ /MOL
Primary clientele of small retail investors : Newtown stock is currently trading at $64 a share. The firm feels that its primary clientele of small retail investors can afford to spend between $3,000 and $3,500 to purchase a round lot of 100 shares. If excess funds are limited, the firm should c..
Is affirmative action still relevant : What is a significant misconception you believe most people have about the law that relates to sexual harassment? What would be the best course of action for a manager to take in the workplace to prevent that misconception from causing a problem?

Reviews

Write a Review

Financial Management Questions & Answers

  Draw cash flow diagram

Draw and solve the Cash Flow Diagram for Future Value F. This is a 10 year Cash Flow, and interest rate is a compounded 7%). What is the Future Value F of this Engineering Cash Flow Investment?

  Conversion cycle-by how much would pre-tax profits change

Primrose Corp has $19 million of sales, $3 million of inventories, $2 million of receivables, and $3 million of payables. Its cost of goods sold is 70% of sales, and it finances working capital with bank loans at an 7% rate. By how much would pre-tax..

  Compare with the current book value of the equipment

Four years ago, Warrior Auto Service purchased some new equipment at a cost of $75,000. The equipment has since been depreciated annually using the SOYD method, assuming a life of seven years and a salvage value of $5,000. How does this offer compare..

  Present value calculations

Present value calculations:

  Calculate the after-tax cost of debt

The Acme Chip Manufacturing Company (potato not computer) has a target capital structure of 40% debt and 60% common equity. They also have a 40% tax rate. you need this to calculate the "after-tax" cost of debt! They have three projects under conside..

  What is debt to capital ratio

The treasury operation of Douglas Co. has provided the following information to Business Development so they can estimate their Cost of Capital (Overall or Weighted Average)for applications in appropriation requests: Cost of Debt Pre-tax 6% Marginal ..

  Cost of retained earnings using gordon model approach

Heavy Snow Corporation just paid a dividend of $2.90 per share, and the firm is expected to experience constant growth of 4.20% over the foreseeable future. The common stock is currently selling for $52 per share. What is Heavy Rain's cost of retaine..

  Is it possible for investors ever to require a lower return

Is it possible for investors ever to require a lower rate of return on a company's equity than on its debt, assuming that the debt is in a junk-bond category of quality?

  Inventory turnover ratio-balance sheet-sales information

Complete the balance sheet and sales information using the following financial data: totals assets turnover: 1.5x days sales outstanding: 41 days inventory turnover ratio: 7x fixed asset turnover:3.5x current ratio:1.7x gross profit margin on sales=2..

  What should be the average stock price per share

Based on your comparable company analysis, what should be the average stock price per share if you plan to sell your company?

  What spread is the bank earning

The Bank of Orlando has large holding of 8% fixed-rate loans. The bank’s sources of funds cost on average LIBOR - 1%. If LIBOR is currently at 5%, what spread is the bank earning? If LIBOR increases to 7%, what is the new spread the bank is earning?

  Feed manufacturer and purchase corn on regular basis

Suppose you are a feed manufacturer and purchase corn on a regular basis. You would like to protect against rising prices. You purchase a September corn futures contract at $3.70/bushel today and assume when you buy corn from your supplier in August,..

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