The Nutrex Corporation wants to calculate its weighted average cost of capital. Its target capital structure weights are 40 percent long-term debt and 60 percent common equity. The before tax cost of debt is estimated to be 10 percent and

57,216 results
  1. finance

    Residual dividend model Buena Terra Corporation is reviewing its capital budget for the upcoming year. It has paid a $3.00 dividend per share (DPS) for the past several years, and its shareholders expect the dividend to remain constant for the next several

  2. Finance

    You are considering opening a new plant. The plant will cost $100 million upfront. After that, it is expected to produce profits of $30 million at the end of every year. The cash flows are expected to last forever. Calculate the NPV of this investment

  3. Economics

    There is a graph showing the expansion path and three curves at 120, 180, 240 output levels.The expansion path hits these lines at(120) 20 (C)(capital units) 4(L)(Labor units, (180) 40 (C) 6(L), (240) 50(C) 8(L). There are three straight lines in faded

  4. math

    Sara is researching phones and decides to create a weighted average to determine the ‘best’. She uses the following weights: 50% battery life, 30% cost, 20% camera to calculate a ‘score’ for each phone. She finds the following ratings out of 10 for

  5. Finance

    Byron Corporation's target capital structure consists of 40% debt and 60% common equity. Assume that the firm has no retained earnings. The company's the last dividend (Do) was $2.00, which is expected to grow at a constant rate of 5%, and the current

  6. finance

    You were hired as a consultant to Giambono Company, whose target capital structure is 40% debt, 15% preferred, and 45% common equity. The after-tax cost of debt is 6.00%, the cost of preferred is 7.50%, and the cost of retained earnings is 12.75%. The firm

  7. Finance

    Evans Technology has the following capital structure. Debt ............................................ 40% Common equity .......................... 60 The aftertax cost of debt is 6 percent, and the cost of common equity (in the form of retained earnings)

  8. fin

    The following tabulation gives earnings per share figures for the Foust Company during the preceding 10 years. The firm’s common stock, 7.8 million shares outstanding, is now (1/1/03) selling for $65 per share, and the expected dividend at the end of the

  9. financial management

    Can anyone help me witht his I am so lost. The following tabulation gives earnings per share figures for the Foust Company during the preceding 10 years. The firm’s common stock, 7.8 million shares outstanding, is now (1/1/03) selling for $65 per share,

  10. econ

    Suppose a firm produces output using the technology Q=K1/3 L2/3 Find a. The long run cost function b. The short run cost function if capital is stuck at 10 units. c. The profit maximizing level of output as a function of the price of the good, wages,

  11. finance

    1. A bond has a $1,000 par value (face value) and a contract or coupon interior rate of 8%. A new issue would have a flotation cost of 5% of the market value. The bonds mature in 10 years. The firm’s average tax rate is 28% and its marginal tax rate is

  12. math

    Sara is researching phones and decides to create a weighted average to determine the ‘best’. She uses the following weights: 50% battery life, 30% cost, 20% camera to calculate a ‘score’ for each phone. She finds the following ratings out of 10 for

  13. College Finance

    Warp Tense Ltd. has the following assets: Current Assets (Temporary): $2,000,000 Current Assets (Permanent): $500,000 Capital Assets: $4,500,000 Total Assets: $7,000,000 Its operating profit (EBIT) is expected to be $0.45 million. Its tax rate is 30

  14. accounting

    The overall (weighted average) cost of capital is composed of a weighted average of : a)The cost of common equity and the cost of debt b)The cost of common equity and the cost of preferred stock c)The cost of preferred stock and the cost of debt d)The cost

  15. fin 370 # 2

    (individual or component costs of capital) Your firm is considering a new investment proposal and would like to calculate its weighted average cost of capital. To help in this, compute the cost of capital for the firm for the following: a. A bond that has

  16. Finance

    You were hired as a consultant to ABC Company, whose target capital structure is 40% debt, 15% preferred, and 45% common equity. The before-tax cost of debt is 8.00%, the cost of preferred is 7.50%, and the cost of common is 12.75%. What is its WACC if the

  17. Business finance

    Question No: 1 The overall (weighted average) cost of capital is composed of a weighted average of : a)The cost of common equity and the cost of debt b)The cost of common equity and the cost of preferred stock c)The cost of preferred stock and the cost of

  18. Corporate Finance

    Calculating Cost of Equity. Bohannon Corporation's common stock has a beta of 1.10. If the risk-free rate is 4.5% and the expected return on the market is 12%, what is the company's cost of equity capital?

  19. Financial Management

    Reading Foods is interested in calculating its weighted average cost of capital (WACC). The company’s CFO has collected the following information: • The target capital structure consists of 40 percent debt and 60 percent common stock. • The company

  20. Accounting PLEASE HELP!!!!!!!!!

    Reading Foods is interested in calculating its weighted average cost of capital (WACC). The company’s CFO has collected the following information: • The target capital structure consists of 40 percent debt and 60 percent common stock. • The company

  21. Finance

    Calculate the weighted average cost of capital for Dell using book value weights and market value weights assuming Dell has 35 percent marginal tax rate.

  22. Finance

    a firm wants to create a weighted average cost of capital (WACC) of 10.4 percent. The firm's cost of equity is 14.5 percent and its pre-tax cost of debt is 8.5 percent. The tax rate is 34 percent. What does the debt weight need to be for the firm to

  23. Finance

    Problem # 1 WACC and optimal capital structure – Elliott Athletics is trying to determine its optimal capital structure, which now consists of only debt and common equity. The firm does not currently use preferred stock in its capital structure, and it

  24. Accounting please help in homework

    The overall (weighted average) cost of capital is composed of a weighted average of : a)The cost of common equity and the cost of debt b)The cost of common equity and the cost of preferred stock c)The cost of preferred stock and the cost of debt d)The cost

  25. Finance

    Medallion Cooling Systems, Inc., has total assets of $10,000,000, EBIT of $2,000,000, and preferred dividends of $200,000 and is taxed at a rate of 40%. In an effort to determine the optimal capital structure, the firm has assembled data on the cost of

  26. Finance

    You were hired as a consultant to Giambono Company, whose target capital structure is 40% debt, 15% preferred, and 45% common equity. The after-tax cost of debt is 6.00%, the cost of preferred is 7.50%, and the cost of retained earnings is 13.00%. The firm

  27. Foundation of Financial Management

    Afirm's cost of financing, in an overall sense, is equal to it's? A: Weighted average cost of capital. B: Required yield that investorrs seek for various kinds of securities. C: Required rate of return that investors seek for various kinds of securities.

  28. Financial Management

    Coogly Company is attempting to identify its weighted average cost of capital for the coming year and has hired you to answer some questions they have about the process. They have asked you to present this information in a PowerPoint presentation to the

  29. finance

    Coogly Company is attempting to identify its weighted average cost of capital for the coming year and has hired you to answer some questions they have about the process. They have asked you to present this information in a PowerPoint presentation to the

  30. Paine College

    Morningside Nursing Home, a not-for-profit corporation, is estimating its corporate cost of capital. Its tax-exempt debt currently requries an interst rate of 6.2 percent and its target capital structure calls for 60 percent debt fianancing and 40 percent

  31. finance

    What makes up a company's capital structure? Explain the purpose of determining the weighted average cost of capital for a company.

  32. Finance

    What makes up a company's capital structure what is the purpose of determining the weighted average cost of capital for a company

  33. Finance

    A firm's target capital structure consists of 40 percent debt, 5 percent preferred stock, and 55 percent common equity. The firm’s cost of debt is 10%, the cost of preferred stock is 11.26%, and the cost of equity is 14 %. What is the firm's weighted

  34. fin 3030

    2. A new common stock issue paid a $1.50 dividend last year. The par value of the stock is $25, and earnings per share have grown at a rate of 3% per year. This growth rate is expected to continue into the foreseeable future. The company maintains a

  35. fin 370 # 2

    (individual or component costs of capital) Your firm is considering a new investment proposal and would like to calculate its weighted average cost of capital. To help in this, compute the cost of capital for the firm for the following: a. A bond that has

  36. Finance

    You are provided the following information on a company. The total market value is $40 million. The capital structure, shown here, is considered to be optimal. Accounting Value Market Value Bonds, $1000 par, 6% coupon, 6% YTM $10,000,000 $10,000,000

  37. finance

    The capital structure of William Corporation limited consists of an ordinary share capital of Rs.20 lakhs (shares of Rs.100 per value) and Rs.20 lakhs of 10% debentures. The unit sales increased by 20% from 2,00,000 units to 2,40,000 units, the selling

  38. Business Finance

    Neville Corporation, an amusement park, is considering a capital investment in a new exhibit. The exhibit would cost $174,777 and have an estimated useful life of 9 years. It will be sold for $69,200 at that time. (Amusement parks need to rotate exhibits

  39. Criminology

    According to proponents of capital punishment, which of the following is a true statement? A. Capital punishment deters crime. B. Capital punishment is less expensive than imprisonment. C. Capital punishment is widely accepted in the international

  40. microeconomics

    Suppose a firm produces output using the technology Q=K1/3 L2/3 Find a. The long run cost function b. The short run cost function if capital is stuck at 10 units. c. The profit maximizing level of output as a function of the price of the good, wages,

  41. FIN 370

    1. (defining capital structure weights) templeton extended care facilities, inc. is considering the acquisition of a chain of cemeteries for $340 million. Since the primary asset of this business is real estate, templeton’s management has determined that

  42. finance

    The Nutrex Corporation wants to calculate its weighted average cost of capital. Its target capital structure weights are 40 percent long-term debt and 60 percent common equity. The before tax cost of debt is estimated to be 10 percent and the company is in

  43. finance

    The Nutrex Corporation wants to calculate its weighted average cost of capital. Its target capital structure weights are 40 percent long-term debt and 60 percent common equity. The before-tax cost of debt is estimated to be 10 percent and the company is in

  44. Finance

    (Weighted average cost of capital) The target capital structure for QM Industries is 38% common stock 7% preferred stock, and 55% debit. If the cost of common equity for the firm is 18.2%, the cost of preferred stock is 10.6% the cost of debt is 8.2%, and

  45. Corporate Finance

    You are given the following for Cardinal & Cardinal, Inc. Their tax rate is 34%. The firm is in need of $5 million dollars in external funds. Your bond advisor suggests that new bond issues can be lower than the current yield to maturity by 1.5% . Existing

  46. Finance

    The target capital structure for QM Industries is 39% common stock 6% is preferred stock, and 55% debt. If the costs of common equity for the firm is 18.2%, and the cost of preferred stock is 9.4%, the before tax cost of debt is 7.5%, and the firms tax

  47. Finance for Buisness

    The target capital structure for QM Industries is 42% common stock, 12% preferred stock, and 46% debt. IF the cost of common equity for the firm is 18.9%, the cost of preferred stock is 9.2%, the before-tax cost of debt is 8.4%, and the firm's tax rate is

  48. Finance

    The target capital structure for QM Industries is 38% common stock, 5% preferred stock, and 57% debt. If the cost of common equity for the firm is 17.7%, the cost of preferred stock is 10.4%, the before-tax cost of debt is 7.8%, and the firm's tax rate is

  49. finance

    The target capital structure for QM industries is 39% common stock, 9% preferred stock and 52% debt. If the cost of common equity for the firm is 18.8%, the cost of preferred stock is 9.7%, the before tax cost of debt is 8.6%, and the firm 's tax rate is

  50. Math (Accounting)

    Reading Foods is interested in calculating its weighted average cost of capital (WACC). The company’s CFO has collected the following information: • The target capital structure consists of 40 percent debt and 60 percent common stock. • The company

  51. Corporate Finance

    Finding the Capital Structure Fama's Llamas has a weighted average cost of capital of 9.8 percent. The company's cost of equity is 15 percent, and its cost of debt is 7.5 percent. Tha tax rate is 35 percent. What is Fama's debt-equity ratio?

  52. Finance for Business

    The taught capital structure for QM Industries is 45% common stock 7% preferred and 48% debt. If the cost of common equity for the firm is 17%, the cost of preferred stock is 10%, the before-tax cost of debt is 8.4% and the firm tax rate is 35%, what is

  53. Financial Management

    Debreu Beverages has an optimal capital structure that is 50% common equity,40% debt, 10% preferred stock. Debreu's pretax cost of equity is 12%, pretax cost of preferred equity is 7%, pretax cost of debt is also 7%. If the corporate tax rate is 35%. What

  54. corporate finance

    Life Balance, Inc. has found that its cost of common equity capital is 15 percent and its cost of debt capital is 9 percent. If the firm is financed with $6 million of common shares (market value) and $4 million of debt, what is the after tax weighted

  55. financial

    a company has determined that its opitmal capital structure consists of 40 percent debt and 60 percent equity. given the following information, calculate the firms weigted average cost of capital rd=6% tax rate=40% p0=$25 growth=0% do=$2.00

  56. accounting

    Refer to Target Corporation's financial statements Target Corporation is currently seeking additional capital to expand its operations. Two companies have shown interest in providing additional capital. Company #1 is interested in investing in the

  57. economics

    A Aircraft company's capital structure is made up of 40% debt and 60% common equity (both at market values). The interest rate on bonds similar to those issued by the company is 8%. The cost of equity is estimated to be 15%. The income tax rate is 40%. The

  58. accounting

    Target Corporation is currently seeking additional capital to expand its operations. Two companies have shown interest in providing additional capital. Company #1 is interested in investing in the organization and, therefore, would like to have part

  59. accounting

    Target Corporation is currently seeking additional capital to expand its operations. Two companies have shown interest in providing additional capital. •Company #1 is interested in investing in the organization and, therefore, would like to have part

  60. accounting

    Target Corporation is currently seeking additional capital to expand its operations. Two companies have shown interest in providing additional capital. Company #1 is interested in investing in the organization and, therefore, would like to have part

  61. accounting

    Target Corporation is currently seeking additional capital to expand its operations. Two companies have shown interest in providing additional capital. Company #1 is interested in investing in the organization and, therefore, would like to have part

  62. Finance

    A company has a weighted average cost of capital of 8.9%. The company's cost of equity is 12 and its pretax cost of debt is 7.9% The tax rate is 35%. What is the company's target debt-equity ratio?

  63. intro to accounting

    Target Corporation is currently seeking additional capital to expand its operations. Two companies have shown interest in providing additional capital.

  64. Finance 370

    What are some other applications where WACC (weighted average cost of capital) would be useful?

  65. Public Finance

    A corporation has $7 mil. in equity. During the tax year it takes in $4 million in receipts and earns $ 2 million in capital gains from sale of subsidiary. It incurs labor costs of $1 million, interest costs of $250,000, material costs of $500,000, and

  66. fin/370

    The target capital structure for Jowers Manufacturing is 51% common stock, 20% preferred stock, and 29% debt. If the cost of common equity for the firm is 20.8%, the cost of preferred stock is 11.8%, and the before tax cost of debt is 10.8%, what is the

  67. Accounting

    ABC Corp Ltd has 10 million shares and $600,000 of debt (issues bonds @ 7% p.a.). EBIT is projected to be $3 million. The company tax rate is 20%.Preference shares pay an annual dividend of $100,000. Management is considering two options for capital

  68. Accounting

    Present value analysis-cost of capital National Leasing is evaluating the cost of capital to use in its capital budgeting process. Over the recent past, the company has averaged a return on equity of 12% and a return on investment of 9%. The company can

  69. Fin215

    You are to assume that a firm’s cost of capital is 10%. Using this information, what are reasonable costs of capital for evaluating average-risk projects, high-risk projects, and low-risk projects. Based on your knowledge about this subject, I should

  70. accounting

    ABC Corp Ltd has 10 million shares and $600,000 of debt (issues bonds @ 7% p.a.). EBIT is projected to be $3 million. The company tax rate is 20%.Preference shares pay an annual dividend of $100,000. Management is considering two options for capital

  71. finance

    Central Systems has a pretax cost of debt of 8%, an average tax rate of 30%, and a cost of equity of 14%. If the company’s debt-equity mix is 50%-50%, what is Central’s weighted average cost of capital?

  72. Finance

    Determine the optimal weighted average cost of capital and discuss the use of multiple valuation techniques in reducing risks on Guillermo Furniture Analysis FIN 571?

  73. economics

    Part 1 A firm has the current liabilities and equity financing on its balance sheet. The firm has taxable income that puts it in a 38% federal tax bracket, and the state in which it operates levies a 6.5% income tax. Compute the firm’s weighted average

  74. accounting

    If I needed to find out OR calculate the weighted average cost of capital (WACC) for the company General Electric (GE), how would I find this information or what is needed from the company financial statements to aid me in coming up with the answer?

  75. Financial Management

    What are reasonable cost of capitol for evaluating average risks projects, high risks projects, and low risk projects? cost of capital= real cost of money + expected return + probability of failure where probability of failure is the risk, expressed as a

  76. economics

    suppose a firm's constant-returns to scale production function requires it to use capital and labor in a fixed ratio of two workers per machine to produce 10 units and that the rental rates for capital and labor are given by v=1, w=3. a. calculate the

  77. Finance Management

    3. A corporation’s capital structure is composed of common stock and preferred stock. If the percentage of common stock is three times the percentage of preferred stock in the capital structure, the percentage of common stock minus the percentage of

  78. Finance

    2004, 2005, 2006, 2007 oAnalyze federal express working capital management. Explain why the company’s operating and cash cycles are currently optimized. If you think they are not optimized, explain why. *Analyze the company's working capital management

  79. Finance

    Calculate the weighted cost of equity for a firm with the following characteristics: (a) Last Dividend--$5.00, (b) Growth Rate—6%, (c) Price of Stock--$125.00 and (d) Weight of Equity Capital—40%

  80. Managerial Economics

    Compute the economic profit of the firm if Sales-10000,material cost-3000,labour cost-2000,Administration cost-1000,own capital invested is 20000 and opportunity cost of capital 10%.

  81. Finance

    I need help with this problem: 1. Hanster Inc. is a levered firm with publicly traded shares. The company has 250 million shares outstanding with a share price of $16 and an estimated equity beta of 1.50. The company has market value based outstanding debt

  82. accounting

    home / study / math / other math / questions and answers / the following tabulation gives earnings per share ... Question: The following tabulation gives earnings per share ... The following tabulation gives earnings per share figures for theFoust Company

  83. finance management

    Suppose a firm estimates its cost of capital for the coming year at 10%, what are reasonable costs of capital for evaluating average-risk, high-risk, and lo-risk projects?

  84. investing

    1. What does calculating the weighted average cost of capital (WACC) tell you about a company's financial strategy including the level of risk involved in the business? 2. How could the company use WACC calculations in determining future investment?

  85. Finance

    The current market price of the company’s share is $5; its next expected dividend is $0.20 and its expected growth rate is 10%. Flotation cost is 20% of the market price of the share. 3. What is the weighted average cost of capital

  86. economics

    Suppose a firm produces output using the technology Q=K1/3 L2/3 Find a. The long run cost function b. The short run cost function if capital is stuck at 10 units. c. The profit maximizing level of output as a function of the price of the good, wages,

  87. Finance

    Wheel Industries is considering a three-year expansion project, Project A. The project requires an initial investment of $1.5 million. The project will use the straight-line depreciation method. The project has no salvage value. It is estimated that the

  88. Economics

    The chapter is on Production and costs in thelong run, we are given a long run expansion path graph, all through out the book we are given labor cost and capital cost, ie. price of labor $5 dollars per unit(w), price of capital $10 per unit (r). Then I get

  89. Economics Help pls

    Suppose you are given the following production function: , where y is output and K is capital. y= 60K + 20.3K2- K3 1.1 what is a production function, what is the real work application of such, and where would you source the data to develop a production of

  90. Accounting

    Units completed 6000 Units in EWIP 2400 Equivalent units 8400 April cost BWIP(40% complete) 1,120 Materials 10,000 convention cost 4,000 total 15,120 1.) calculate the unit cost for april using the Weighted Average Method 2.) Using the Weighted Average

  91. finance

    the target capital structure for QM industries is 45% common stock, 5% preferred stock and 50% debt. If the cost of common equity for the firm is 18.9%, the cost of preferred stock is 10.7% and the before tax cost of debt is 7.7% and the firm's tax rate is

  92. accounting

    By Saturday, January 5, 2013, submit the following assignment: As a financial consultant, you have contracted with Wheel Industries to evaluate their procedures involving the evaluation of long term investment opportunities. You have agreed to provide a

  93. investing

    Suppose a firm estimates its cost of capital for the coming year to be 10 percent. What are reasonable costs of capital for evaluating average-risk projects, high-risk projects, and low-risk projects? Please help .

  94. Math

    Rajesh distributed his capital 1/2 of the capital to his wife 1/3 to his son & remaining 50000 to his daughter.find total amount of his capital

  95. Economics

    Suppose the production function is Y = 100(K3/10)(EN)7/10 and capital lasts an average of fifteen years. The rate of population growth is 0.5%. The rate of technological progress is 2.5%. The saving rate is 5%. A. Derive the equation for output per

  96. Accounting

    Why do revenues increase capital while expenses decrease capital? Because cash is a form of capital.

  97. Finance

    You know that the after-tax cost of debt capital for Bubbles Champagne is 4.1 percent. Assume that the firm has only one issue of five-year bonds outstanding. The bonds make semiannual coupon payments and the marginal tax rate is 30 percent. a. Calculate

  98. Sociology

    If Andrea's parents have her take violin lessons, take a foreign language and attend science camp in hopes of her developing skills so she can get into a competitive college, is that an example of human capital or cultural capital? I was leaning towards

  99. Financial management

    Im having a little trouble can someone please help me. Im not sure if my answers were right or what the rest would be. 1. _________C__________ is the interest rate in which NPV equals zero. a. Required Rate of Return b. Annual percentage rate (APR) c.

  100. financial managment

    The following tabulation gives earnings per share figures for the Foust’s Company during the preceding 10 years. The firm’s common stock 7.8 million shares outstanding, is now (1/1/03) selling for $65 per share, and the expected dividend at the end of

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