User Account

All Pages

What is capital structure weight of the firms common stock

Assignment Help Finance Basics
Reference no: EM13261041

NR Industries has 150,000 shares of common stock outstanding. The stock is currently selling for $33.50 a share. The firm also has 2 bond issues outstanding. The first bond issue has a total face value of $2,500,000, pays 9.5 percent interest annually, and currently sells for $1,030. The second bond issue consists of 7,500 bonds that are selling for $960 each. These bonds pay 8 percent interest annually and mature in 11 years. The tax rate is 34 percent. What is the capital structure weight of the firm's common stock? (Hint: Assume each bond has face value of $1,000.)

a. 33.66 percent
b. 33.71 percent
c. 33.80 percent
d. 33.95 percent
e. 34.07 percent

 

Reference no: EM13261041

Questions Cloud

What is difference between logical nd arithmetic shift right : Data Transfer/Manipulation Instructions a) If accA holds $16 and accB holds $2A, what memory locations will change value after executing the STD $637F instruction. Identify the new value in any changed memory locations.
How companys health and wellness programs add value : How did the company's health and wellness programs add value and evaluate the company's approach to selecting and designing a health plan, and pharmacy benefits.
What is the mass of the gas in the tank : A 10m^3 tank of compressed natural gas has an absolute pressure of 400 kPa at a temperature of 27 C. What is the mass of the gas in the tank
Will the acquisition have on wilsons cost of equity capital : which will change the company's beta to 1.7. What effect, if any, will the acquisition have on Wilson's cost of equity capital?
What is capital structure weight of the firms common stock : What is the capital structure weight of the firm's common stock? (Hint: Assume each bond has face value of $1,000.)
What series of instructions would achieve 16-bit subtraction : a) If accA holds $16 and accB holds $2A, what values will be in the each accumulators after executing the ABA instruction b) What series of instructions would achieve the 16-bit subtraction of $1234 from $8ABC
Explain what is the molarity of a sodium chloride solution : What is the molarity of a sodium chloride solution if 2.45 grams of NaCl is dissolved in 250 mLs of water? C. How many grams of solute are in 1.75 Liters of 0.460 M sodium monohydrogen phosphate
Explain what would be the effect on your calculated mass : Explain What would be the effect on your calculated mass percent recovery Cu if you used all your NaOH solution in part ll and the litmus paper never turned blue
What percentage of the firms capital funding should be debt : The pretax cost of debt is 6.7 percent and the cost of common stock is 10.4 percent. What percentage of the firm's capital funding should be debt financing if its tax rate is 30 percent?

Reviews

Write a Review

Finance Basics Questions & Answers

  Research the history of saturn and gm decision

Throughout its existence, Saturn has never turned a profit for General Motors. Research the history of Saturn and GM's decision to continue funding it.

  Estimate the weighted cost of capital

Electronics Unlimited has the following capital structure: 60 percent stock, 10 % preferred stock, and 30% in debt. The after-tax cost of debt is 8 percent, the cost of preferred stock is 10 percent, and the cost of common stock is 12 percent.

  Determine the actions minimize cash flow

Determine what actions can you take to minimize the cash flow problems that were identified in the simulation?

  What rate of return should investors expect on this fund

Assume that you are the portfolio manager of the SF Fund, a $3 million hedge fund that contains the following stocks. The required rate of return on the market is 11.00% and the risk-free rate is 2.00%. What rate of return should investors expect ..

  Explain decision making on the basis of the irr and npv

Explain decision making on the basis of the IRR and NPV criterion and Compute the net present value for each project if the firm has a 10% cost of capital. Which project should be adopted

  Computing the annuity due by using excel

Terry Austin is 30 years old and is saving for her retirement. She is planning on making 36 contributions to her retirement account at the beginning of each of the next 36 years.

  Objective type questions on capital budgeting

Objective type questions on capital budgeting and When evaluating a capital budgeting project the change in net working capital

  Determine the price of a cup

A coffee shop has a cost of $0.80 per cup of gourmet coffee. They use a mark-up of 200 percent. Determine the price will they charge for a cup of gourmet coffee?

  Litigation-bill of rights-insurance and liability

What amendments to the Bill of Rights have had the most impact on business? What would business life be like without them?

  Dividend policy and cap structures

What is an event study designed to test? What role does par value play in the pricing and sale of common stock by the issuing corporation? Why do most firms assign relatively low par values to their shares?

  Purchase price as well as monthly payment for two different

Purchase price as well as monthly payment for two different offers and Suppose that you want to purchase a new truck from a local dealership

  Calculation of budgeted production dollars

Calculation of budgeted production dollars and Directing and coordinating operations during the period

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