Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN: 9781337395083
Author: Eugene F. Brigham, Phillip R. Daves
Publisher: Cengage Learning
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- Define each of the following terms: Weighted average cost of capital, WACC; after-tax cost of debt, rd(1 – T); after-tax cost of short-term debt, rstd(1 – T) Cost of preferred stock, rps; cost of common equity (or cost of common stock), rs Target capital structure Flotation cost, F; cost of new external common equity, rearrow_forwardInsight Ltd. has the following capital Structure & after-tax Cost for different sources of funds used: Source of Funds Amount After-tax Cost Debt 15,00,000 5 Pref. Shares 12,00,000 10 Eq. Shares Retained Earnings 18,00,000 12 15,00,000 11 You are required to Calculate Weighted Average COC.arrow_forward(a) Calculate Return on Investment from the followingGross Profit Rs.100000, Office Expenses Rs. 10000, Selling and Distribution expenses Rs. 25000, Interest on Bank Loan Rs. 8000, Income tax Rs. 12000,Fixed Assets Rs. 300000, Current Assets Rs. 150000 & Current Liabilities Rs.125000(b) Calculate the earning per share from the following data15000 Equity Share of Rs. 10 each 15000010 % Preference Share Capital 100000Net Profit before Tax 55000.arrow_forward
- Expressed as a percentage, what would be a company's current ratio if net fixed assets are Ph1,230,000; current assets, P368,400; current liabilities, Ph120,00 and other liabilities, Ph65,000 a. 307% b. 450% c. 603% d. 860%arrow_forwardFrom the following information of Axis Limited compute the Replacement Cost Value / Net Substantial Value Liabilities Equity Share Capital Preference Share Capital Reserves and Surplus Adjustment Long-term Debt Short-term Debt Creditors Amount (Mn$) 2000 1100 800 1400 800 1700 Assets 1100 Debtors 8,900 Fixed Assets Inventories Cash and Bank Balance Amount (Mn$) 4100 2350 1150 1300 8,900arrow_forwardCalculate RETURNED ON INVESTED CAPITAL by referring the pictures of Financial Position and Statement of Profit or Loss given with this question.arrow_forward
- You have the following information: total assets = $200 million; risk-adjusted assets = $90 million; owners' equity = $3.5 million; Trust-preferred securities = $0.7 million; loan loss reserve = $1.5 million; & subordinated debt = $2 million Calculate: 1. Equity Capital Ratio 2. Tier 1 Ratio 3. Total Capital Ratioarrow_forwardPlease provide correct answer general accountingarrow_forwardCalculate current ratio from the following:- Particular Total Assets Fixed Assets (Tangible) Shareholder funds Rs. Particular 3,00,000 Non-current Liabilities 1,60,000 Non-current Investments 2,00,000 Rs. 80,000 1,00,000arrow_forward
- The company capital structure consists of debt 250000 at 6.05%, preferred stock is 50% from debt amount at 11% and common stock 119000 at 14%, calculate company’s weighted average cost of capital Select one: a. 0.0421 b. 0.0321 c. 0.0921 d. None e. 0.0721arrow_forwardYou are given the following data: EBIT : OMR 500,000 Shareholders funds : OMR 1200,000 Non current liabilities : OMR 800,000 Then return on capital employed isarrow_forwardThe company capital structure consists of debt 250000 at 0.084, preferred stock 230000 at 11% and common stock 120,000 at 14%, calculate a company's weighted average cost of capital Select one: O a. 0.1051 O b. 0.0629 OC 0.0771 d. 0.0349 e. All the given choices are not correctarrow_forward
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