User Account

All Pages

What is the capital structure weight of firm common stock

Assignment Help Finance Basics
Reference no: EM13261290

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: EM13261290

Questions Cloud

Determine the amplitude of the current through this circuit : A 1.02mF capacitor is connected in series with an AC source with amplitude 50V and angular frequecy 40 rad/s. determine the amplitude of the current through this circuit
What percentage of the firm capital funding should be debt : What percentage of the firm's capital funding should be debt financing if its tax rate is 30 percent? (Hint: Find the weight of debt in the formula for WACC. Remember that sum of weights of debt and equity must equal 1.)
Explain what is the effect on the cell emf : A voltaic cell utilizes the following reaction: Al(s) + 3Ag+(aq) Al3+(aq) + 3Ag(s) What is the effect on the cell emf of each of the following changes
What will the focal lens of the lens be in this environment : If this lens is then immersed in silicone oil with a refractive index of 1.52, what will the focal lens of the lens be in this environment
What is the capital structure weight of firm common stock : What is the capital structure weight of the firm's common stock? (Hint: Assume each bond has face value of $1,000.)
Determine the wavelength of the light in the liquid : Light of wavelength 550nm in air is found to travel at 1.96*10^8 m/s in a certain liquid. Determine the wavelength of the light in the liquid
What is the more common practice today : With very little in the way of exceptions, the common law required no writing or signature to enter into a contract. The overwhelming number of contracts were verbal or oral contracts. What is the more common practice today?
Find what is the output power of the final amplifier stage : Three amplifiers with power gains of 15, 22, and 7 are cascaded. The input power is 120 µW. What is the output power of the final amplifier stage
Explain what was the ka for the unknown acid : A 0.146 g sample of an unknown monoprotic acid (molar mass = 83.0 g/mol) was dissolved in 50.0 mL of  water and titrated with a 0.101 M NaOH solution. After the addition of 14.0 mL of base, the pH was 5.12. What was the Ka for the unknown acid

Reviews

Write a Review

Finance Basics Questions & Answers

  Domestic parent and foreign subsidiary

What major problem might arise with intercompany debt between a domestic parent and a foreign subsidiary or between subsidiaries in different countries? How has Hershey Foods dealt with this problem?

  Determine the gain from merger

Velcro Saddles is planning the acquisition of Pogo Ski Sticks, Corporation. The values of the two companies as separate entities are $20 million and $10 million, respectively.

  Examine five stages of skill acquisition

Examine the five stages of skill acquisition. (1) Novice, (1) Advanced Beginner, (3) Competent, (4) Proficient, (5) Expert.

  Calculate the average rate of return

Suppose that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B. Determine the realized rate of return on the portfolio have been in each year?

  Calculate one share price

ABC Corporation is a relatively new Company that appears to be on the road to great success. The Corporation paid their first annual dividend yesterday in the amount of $.28 a share.

  Investment decision rule problems

Investment Decision Rule Problems : -  A $25 investment produces $27.50 at the end of the year with no risk. If the OCC = 10% annually is this a good investment?

  Identify ethical actions

The net income of Simon and Hobbs, a department store, reduced sharply during 2000. Carol Simon, owner of the store, anticipates the required for a bank loan in 2001.

  Objective type questions on capital structure

Objective type questions on cost of capital and capital structure and Which one of the following means of management compensation is designed to help eliminate the agency problem

  Determine sales in division

Devlin Corporation has two divisions, C and D. The overall corporation contribution margin ration is 30% with sales in the two divisions totaling $500,000.

  Calculation of ratios

Use the financial statement and additional data, calculate at least five of the following ratios for Alley corporation for 2009.

  How long do you have to wait to become a millionaire

You have just won$140,000 from a lottery. If you invest all this amount in a tax-free money market fund earning8% compounded weekly, how long do you have to wait to become a millionaire? (Round your answer to two decimal places.)

  Change in nominal required rate of return

Describe why you would change your nominal required rate of return if you expected the rate of inflation to go from zero to 4%.

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