Calculate the weighted average cost of capital for Foggy Futures Weather Forecasters.The firm is in the 25% tax bracket. The optimal capital structure is listed below:SOURCE OF CAPITAL WEIGHTDebt 20%Preferred Stock 30%Common Stock 50% DebtThe firm can issue $1000 par value, 9% coupon interest bond with a 15 year maturity date. The bond has an average discount of $20 and flotation costs of $30 per bond. The selling price is $1,000Preferred Stock The firm can sell preferred stock with a dividend that is 10% of the current price of $95. The cost of issuing and selling the stock is expected to be $7 per shareCommon Stock The firm's common stock is currently selling for $100 per share. The firm expects to pay cash dividends of $12 per share next year. The dividends have been growing at 8%. The stock was discounted by $7, and the flotation costs amounted to $5 per share.

1. Please explain the Michael Porter- 5 Forces of Model.2. Explain the Advantage and Disadvantage of Michael Porter- 5 Forces of Model.3. Give examples how Michael Porter- 5 Forces of Model affect the Capital Markets.   An

The table below, shows the balance sheet of the Bruins Bank. Liabilities/Equity Assets Reserves $40 Demand Deposits Loans 300 Shareholders' equity $450 50 Securities 100 Fixed assets 60 Total 500 Total 500 By how much is the Bruins Bank over- or under-reserved if the target reserve ratio is as listed below. a. If the target reserve ratio is 4.0% the Bruins Bank is (Click to select) by $ b. If the target reserve ratio is 8.0% the Bruins Bank is (Click to select) by $ c. If the target reserve ratio is 12.0% the Bruins Bank is (Click to select) by $ d. If the target reserve ratio is 14.0% the Bruins Bank is (Click to select) by $

. When choosing between long and short term borrowing, which of the following is not usually a relevant consideration for a company? Any costs associated with refinancing, such as arrangement fees and penalties. Likely interest rate movements. Matching the term of the loan with the nature of the assets being financed. The principal agent problem.

You have just received a business valuation report that is dated six months ago. Describe the factors that might have changed during the past six months and, therefore, caused the value of the business today to be different from the value six months ago. Which of these changes affect the expected cash flows, and which affect the discount rate that you would use in a discounted cash flow valuation of this company?

The following is an excerpt from a business plan: "To open our new upscale toy store, We R Toys, we require a total of $225,000. The owners will be providing $100,000 of this amount from their own savings, and their friends and families have promised an additional $25,000. Therefore, We R Toys requires a bank loan of $100,000." In which section of We R Toys' business plan would this information be found? O Executive Summary O Sales Strategies Market Analysis O Financial Projections O Funding Requirements

You have been appointed as a financial consultant by the directors of Sizonke Holdings. They require you to determine the cost of capital of the company. The following information is available on the capital structure of the company:✓1 500 000 ordinary shares, with a market price of R3 per share. The latest dividend declared was 85 cents per share. A dividend growth of 14% was maintained for the past 5 years.✓1 000 000 11%, R1 preference shares, with a market value of R2 per share.✓R1 000 000 9%, debentures due in 7 years and the current yield-to-maturity is 10%.✓R700 000 14%, bank loan, due in December 2019.Additional information:- The company has a tax rate of 28%.- The beta of the company is 1.6, a risk free rate of 6% and the return on the market is 15%.Required:2.1 Calculate the weighted average cost of capital. Use the Gordon Growth Model to calculate the cost of equity. (22 marks)2.2 Calculate the cost of equity, using the Capital Asset Pricing Model. (

It is often difficult to estimate the expected future dividend growth rate for use in estimating the cost of existing equity using the DCF or DG approach. In general, there are three available methods to generate such an estimate: • Carry forward a historical realized growth rate, and apply it to the future. • Locate and apply an expected future growth rate prepared and published by security analysts. • Use the retention growth model.   Suppose Johnson is currently distributing 45% of its earnings in the form of cash dividends. It has also historically generated an average return on equity (ROE) of 20%. Johnson’s estimated growth rate is    %.

Plan for potential investors for 39 Storage https://www.39storage.com/ (This Company) Cover these points below Identify the problem to be solved. Introduce your solution to the problem. Discuss your beginning traction for getting sales. Identify the target market. Explain the costs of acquiring customers in your target market. Communicate the value proposition relative to competitors. Describe the basics of the revenue model. Provide financial projections, along with the assumptions. Sell the team. Identify your funding needs, and explain the use of the funds (the investment price must be stated) Describe possible exit strategies—how the investors may be able to cash out. End on a high note—remind investors why your product/service/team is so great.

One of your customers is delinquent on hisaccounts payable balance. You’ve mutually agreed to a repayment schedule of $700per month. You will charge 1.3 percent per month interest on the overdue balance. Ifthe current balance is $21,500, how long will it take for the account to be paid off ?