Assume that you have been hired as a consultant by CGT, a major producer of chemicals and plastics, including plastic grocery bags, styrofoam cups, and fertilizers, to estimate the firm's weighted average cost of capital. The balance sheet and some other information are provided below. Assets Current Assets Net, plant, property, and equipment Total assets Liabilities and Equity Accounts payable Accruals $ $ $ $ SS $ 38,000,000 101,000,000 139,000,000 10,000,000 9,000,000 19,000,000 Current Liabilities $ Long-term debt (40,000 bonds, $1,000 par valu $ Total liabilities $ Common stock (10,000,000 shares) $ Retained earnings $ 50,000,000 Total shareholders equity $ 80,000,000 Total liabilities and shareholder's equity $ 139,000,000 1. What is the best estimate of the tax cost of debt? 2. CAPM 3. WACC 40,000,000 59,000,000 30,000,000 The Stock is currently selling $15.25 per share, and its noncallable $1000 par value, 20 year, 7.25% bonds semiannual payments are selling for $875. The beta is 1.25, the yield on a 6-month treasury bill is 3.50% and the yield on a 20-year treasury bond is 5.50%. the required return on the stock market is 11.50% but the market had an average annual return of 14.50% during the past 5 years. The firms tax rate is 40%.

You are an investment analyst at FI Investments tasked to value FBC firm a Southern Agricultural Conglomerate. The following financial information was recently released for FBC. The company’s 2018 and 2017 annual financial reports are contained in tables 1 and 2 below, along with important additional information:   Table 1: FBC statement of financial position (R millions)   2018 2017 Cash and equivalents R149 R83 Accounts receivable 295 265 Inventory 275 285 Total current assets R719 R633       Total fixed assets 3 909 3 856       Accounts payable 228 220 Notes payable 0 0 Total current liabilities 228 220       Long term debt 1 800 1 650       Total liabilities and shareholders equity 3 909 3 856 Number of shares outstanding (millions) 100 100       Additional information: Depreciation (2018): R483. The firm spent R250m in profitable projects during the…

Calculates the Dupont formula and presents reasons that justify the company's profitability and motivate capital investment. Balance Sheet 2018 2019 Cash $63,000 $201,000 Accounts Receivable 199,000 305,000 Marketable Securities 81,000 42,000 Inventories 441,000 455,000 Prepaids 5,000 9,000        Total Current Assets 789,000 1,012,000 Property, Plant, and Equipment, net 858,000 858,000        Total Assets $1,647,000 $1,870,000       Account Payable $150,000 $100,000 Accruals               101,000          95,000         Total Current Liabilities $251,000 $195,000 Bonds Payable 405,000 575,000        Total Liabilities 656,000 770,000       Common Stocks 700,000 700,000 Retained Earnings 291,000 400,000        Total Stockholders’ Equity 991,000 1,100,000      Total Liabilities & Equity $1,647,000 $1,870,000   Income…

Given the following information, construct the firm’s balance sheet:   Cash and cash equivalents $ 400,000 Accumulated depreciation on plant and equipment   660,000 Plant and equipment   5,400,000 Accrued wages   260,000 Long-term debt   4,210,000 Inventory   7,080,000 Accounts receivable   5,430,000 Preferred stock   550,000 Retained earnings   8,680,000 Land   1,070,000 Accounts payable   2,030,000 Taxes due   170,000 Common stock $ 10 par Common shares outstanding   238,000 Current portion of long-term debt $ 440,000   Round your answers to the nearest dollar.   Corporation X Balance Sheet as of XX/XX/XX Assets   Liabilities and Owners' Equity Cash and cash equivalents $      Accounts payable $    Accounts receivable        Taxes due      Inventory        Accrued wages       Total current assets $      Current portion of long-term debt $    Land         Total current liabilities      Plant and equipment        Long-term debt…

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Question 10 of 25 Based on the following data, what is the amount of working capital? Accounts payable Accounts receivable Cash Intangible assets Inventory Long-term investments Long-term liabilities Short-term investments Notes payable (short-term) Property, plant, and equipment Prepaid insurance $404240 O $411680 > O $458800 $79360 141360 86800 124000 171120 198400 248000 99200 69440 1661600 2480

Assume a company’s balance sheet showed beginning and ending balances in the Long-Term Investments account of $1,100,000 and $900,000, respectively. The company sold a long-term investment that cost $300,000 and recorded a gain on this sale of $35,000. Based solely on the information provided, the company’s net cash provided by (used in) investing activities would be:   Multiple Choice   $200,000.   $300,000.   $235,000.   $335,000.

The capital investment committee of Ellis Transport and Storage Inc. is considering two investment projects. The estimated income from operations and net cash flows from each investment are as follows:

Darden Company has cash of $28,000, accounts receivable of $38,000, inventory of $20,000, and equipment of $58,000. Assuming current liabilities of $28,000, this company's working capital is: Multiple Choice $58,000. $10,000. $88,000. $38,000.