Reference no: EM132532801
Port Manufacturing Incorporation is considering the following three (3) proposals for new investments in capital projects for the upcoming year.
Initial Annual Project
Equipment Cost Cash Flows Life
Project A 75,000 15,000 15
Project B 225,000 45,000 12
Project C 150,000 45,000 9
- Port's current capital structure is made up of $105,000 in long-term bonds, $45,000 in preferred shares, $120,000 common shares and $30,000 in retained earnings. The long-term debt carries an interest rate of 9%. Each preferred share has a par value of $75 and pays an annual dividend of $10.50. The market price of the common shares is $90, and the dividend for the upcoming year is expected to be $9 per share. Common dividends are expected to grow at an annual rate of 3%, and the corporate tax is 35%. Port can sell new debt and equities at current rates, and its capital structure will likely remain unchanged in the foreseeable future.
Question 1. What is the after tax cost of debt (rounded to two (2) decimal places? ________
Question 2. What is the cost of preferred stock (rounded to two (2) decimal places? ________
Question 3. What is the cost of equity (rounded to two (2) decimal places? ________
Question 4. What is the weight of Debt? __________
Question 5. What is the weight of Preferred stock? __________
Question 6. What is the weight of Common Equity?
Question 7. What is Port's WACC, rounded to two decimal places? __________
Question 8. What is the discounted payback period of Project C in years (rounded to two (2) decimal places?
|
Explain between conventional and abc
: Outline some of the perceived benefits of implementing ABC. Outline with an example in a business on its areas where ABC can be applied
|
|
Presentation about obesity and osteoarthritis in dogs
: Need pics and focusing more on osteoarthritis in professional way like effect of preventing overweightness and obesity on the development of osteoarthritis
|
|
Estimate of uncollectibles is determined
: Prepare adjusting journal entries assuming that the estimate of uncollectibles is determined by using 4% of gross accounts receivable.
|
|
Disaster recovery plan that outlines emergency strategies
: Choose either a natural or man-made disaster. Create a disaster recovery plan that outlines emergency strategies, backup procedures, recovery steps,
|
|
What is cost of preferred stock and after tax cost of debt
: What is the cost of preferred stock (rounded to two (2) decimal places? What is Port's WACC, rounded to two decimal places? What is the weight of Debt
|
|
How much should deposit every month
: Find the present value of $10,000 received at the start of every year for 20 years if the interest rate is J1 = 12% p.a. and if the first payment
|
|
Create disaster recovery plan
: Create a disaster recovery plan that outlines emergency strategies, backup procedures, recovery steps, and a test plan.
|
|
External agencies to secure our most precious data
: Have we arrived at a point where we can trust external agencies to secure our most precious data?
|
|
Determining the unpaid balance and the new account
: A bought a car from B, a dealer of cars, on the installment plan. After a while, A brought back the car to the shop B, saying he could not pay for it. B accepte
|