A company having total assets of $2,350,000 and liabilities of $950,000 needed to raise $1,000,000 to purchase some land for expansion. They could either borrow the funds using 20- year bonds or they could issue 100,000 shares of common stock at the estimated market price of $10 per share. What is the debt/equity ratio if the $1 million is borrowed using bonds?

Suppose that the assets of a bank consists of $100 million of loans to A rated corporations. The PD for the corporations is estimated as 0,1% and LGD is 60%. The average maturity is 2.5 years for corporate loans. What is RWA?.

To assist with evaluating potential capital projects, Insignia Corporation Limited is seeking to determine its Weighted Average Cost of Capital. Utilising information from the financial statements, the company has the following capital structure: Debt:                    Bonds outstanding has a face value of $835,000,000, currently selling at 105% of par. The coupon rate on these bonds is 9% and there is 10 years left to maturity. (Hint: you can use the lowest multiple of $1,000 for the YTM calculation only) Common stock:   13,000,000 shares of common stock outstanding with a market price of $60.00. The company has no preference shares outstanding. Additional Information: The Company’s tax rate is 30%. The current risk free rate is 3.50%; market return is 8%. The Company’s beta is 2.50. Required: Calculate the Weighted Average Cost of Capital for Insignia Corporation Limited.

A company has raised $90 million to finance their business, with a 50/50 debt to equity ratio. If they want to raise debt to reach a 70/30 D/E ratio, how much debt would they need to raise? options:   $40 million   $15 million   $60 million   $35 million

A firm has target debt-equity ratio of 0.60. The flotation cost for equity is 5% and the flotation cost for debt is 3%. The firm needs $10,000,000 investment to undertake a project. How much should the firm raise to account for flotation costs and the initial investment need of the project? O $10,395,010 O $10,416,667 $11,000,821 $10,572,912 O $10,443,864

​(Capital structure​ analysis)  The liabilities and​ owners' equity for Campbell Industries is found​ here:   LOADING... .   a.  What percentage of the​ firm's assets does the firm finance using debt​ (liabilities)? b.  If Campbell were to purchase a new warehouse for $1.1 million and finance it entirely with​ long-term debt, what would be the​ firm's new debt​ ratio? Accounts payable $519,000 Notes payable $248,000 Current liabilities $767,000 ​Long-term debt $1,101,000 Common equity $4,647,000 Total liabilities and equity $6,515,000

The liabilities and owners’ equity for Campbell Industries is found here. What percentage of the firm’s assets does the firm now finance using debt (liabilities)? If Campbell were to purchase a new warehouse for $1.4 million and finance it entirely with long-term debt, what would be the firm’s new debt ratio?

If Campbell were to purchase a new warehouse for 1.1 million and finance it entirely with long-term debt, what would be the firm's new debt ratio?  The new debt ratio will be account payable 495,000 notes payable 243,000 current liabilities 738,000 long term debt 1,207,000 common equity 5,079,000  total liabilities and equity 7,024,000

A financial analyst is in the process of estimating the cost of capital of Gewicht GmbH. The following informnation is obtained from the company web pages. Market value of debt: $50 million • Market value of equity: $600 million Table 1. Primary competitors and capital structures (in millions) Market value of Market value of Competitor debt equity A $25 $50 B $101 $190 C $40 $60 QUESTIONS: What are Gewicht GmbH target capital structure (DV and E/V) if the analyst uses current capital structure? und numberto four decimalpla to report the results Options: 0.4213 0.4921 0,4545 0,5454 D/V v EN

MAGGIE LTD Q&S (Computing individual or component costs of capital) Compute the cost of capital foreach of the following sources of financing: a. A bond that has a $1,000 par value (face value) and a contract or coupon interest rateof 12 percent. Interest payments are $120 and are paid semiannually. The bond hasa current market value of $1,125 and will mature in 10 years. The firm's marginal tax rate is 34 percent. b. A new common stock issue by a firm that paid a $1.75 dividend last year. The firm's dividends are expected to continue to grow at 8 percent per year forever. The price ofthe firm's common stock is now $28.00. c. A preferred stock that sells for $150, pays a 10 percent annual dividend, and has a $125 par value. d. A bond whose yield to maturity (based on the bond's market price) is 13 percentwhere the firm's tax rate is 34 percent. Identify the features and working formula for this question as per below (add if there's more): - Par Value = Coupon rate = Interest payments =…