chapter 9 #4 Assume that a company borrows at a cost of 0.08. Its tax rate is 0.35. What is the minimum after-tax cost of capital for a certain cash flow if100 percent debt is used? ____________________100 percent common stock? ____________________ (assume that the stockholders will accept 0.08) A Week 5 AssignmentA Bookshelf - The Capital Budgetin Xd VitalSource Bookshelf: The Capita Xb My Questions | bartlebyA online.vitalsource.com/#/books/9781135656232/cfi/6/34!/4/280/4/2/2/12@0:77.0A <9. The Cost of Capita...2. (Continuation of problem 1)a. Assuming 0.5 common stock, 0.4 debt, and 0.1 preferred stock, the after-tax WACC of the firm isb. A zero-tax investor holding the proportion of securities given in (a) would earnGo to 9. The Cost of Capital andCapital Structure3. Assume that a firm has earned before-tax income. The corporate tax rate is 35 percent.A constant WACC (no taxes)a. If the security used to finance the investment is $1,000 of 10 percent debt, the firm holding the debt (supplying the debt capital) willearnafter tax.b. If the security used to finance the investment is $1,000 of 10 percent preferred stock, the corporation holding the preferred stock(supplying the capital) will earnc. If the security used to finance the investment is $1,000 of common stock and if the entire after-tax amount of income is paid as adividend, the corporation holding the common stock will earn$153.85.A constant valueafter tax with a 0.70 dividend received reduction.after tax. The firm has earned before tax income ofLevering a firm4. Assume that a company borrows at a cost of 0.08. Its tax rate is 0.35. What is the minimum after-tax cost of capital for a certain cash flow ifТаxesa. 100 percent debt is used?b. 100 percent common stock?Implications of the zero corporate(assume that the stockholders will accept 0.08)tax model5. Assume that the return on tax-exempt securities is 0.09 and that t, = 0.3, tg = 0.15, and to = 0.35, where tg is the rate on capital gains, to is thecorporate tax rate, and t, is the personal tax rate on dividends and interest. Equilibrium conditions exist.The value of a levered firm witha. The return to investors on taxable bonds raised as new capital can be expected to beb. The return to investors on common stock (all capital gains) raised as new capital can be expected to bec. If taxable debt is issued, the company will have to earntaxesbefore tax, and if common stock is issued the firm will have toearnbefore tax.Valuing a firm: capital structure andd. If taxable debt is issued, the company will have to earnbefore tax, and if common stock is issued the firm will have tocorporate taxesearnbefore tax.6. The tax rate for the Gas Corporation is 0.35. The following table has been prepared for the president of the firm. The US Internal RevenueCode applies.Personal taxesConclusionsBefore-tax costCapital structureBonds0.140.4ProblemsPreferred stock0.24070.1Common stock0.3330.5Bibliography7:45 PMP Type here to searcha10/24/2020

Given data; cost of debt = 0.08 tax rate =0.35

chapter 9 #4 Assume that a company borrows at a cost of 0.08. Its tax rate is 0.35. What is the minimum after-tax cost of capital for a certain cash flow if 100 percent debt is used? ____________________ 100 percent common stock? ____________________ (assume that the stockholders will accept 0.08)

chapter 9 #4 Assume that a company borrows at a cost of 0.08. Its tax rate is 0.35. What is the minimum after-tax cost of capital for a certain cash flow if 100 percent debt is used? 100 percent common stock? (assume that the stockholders will accept 0.08)

Quickbooks Online Accounting

3rd Edition

ISBN:9780357391693

Author:Owen

Publisher:Owen

Chapter8: Budgets And Bank Reconciliations

Section: Chapter Questions

Problem 4.2C

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ezto.mheducation.com/ext/map/index.html?_con3Dcon&external_browser%3D0&launchUrl%3Dhttps%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/question-g hapter 18- Problems i Saved Help Save & Exit The following is the sales budget for Yellowhead Inc. for the first quarter of 2018: 1 January February $235,000 March Sales $215,000 $258,000 Credit sales are collected as follows: 55% in the month of the sale, 30% in the month after the sale, and 15% in the second month after the sale. Skipped The accounts receivable balance at the end of the previous quarter was $99,000 ($69,000 of which was uncollected December sales). a. Calculate the sales for November. (Omit $ sign in your response.) November sales 24 b. Calculate the sales for December. (Round the final answer to 2 decimal places. Omit $ sign in your response.) December sales c. Calculate the cash collections from sales for each month from January through March. (Do not round intermediate calculations. Round the final answers to 2…
gageNOWv2 | Online teachin x akeAssignment/takeAssignmentMain.do?invoker=8&takeAssignmentSessionlocator=8inprogress=false eBook Show Me How Print Item Personal Budget At the beginning of the school year, Katherine Malloy decided to prepare a cash budoet for the months of September, October, November, and December. The budget must plan for enough cas on December 31 to pay the spring semester tuition, which is the same as the fall tuition The following information relates to the budget: $6,210 Cash balance, September 1 (from a summer job) 80 Purchase season football tickets in September 220 Additional entertainment for each month 3,400 Pay fall semester tuition in September 300 Pay rent at the beginning of each month 170 Pay for food each month 400 Pay apartment deposit on September 2 (to be returned December 15) 770 Part-time job earnings each month (net of taxes) a. Prepare a cash budget for September, October, November, and December. Enter all amounts as positive values except an…
P 00 it View History Bookmarks Window Help 00 A ezto.mheducation.com nt Portal Course Modules: Budgeting and Forecasting 62211 Week 4: Homework Question 3 - Week 4: Homework - Co omework G Saved Help Save & Exit Submit Check my work Information pertaining to Noskey Corporation's sales revenue follows: November 2021 (Actual) $ 180,000 December 2021 (Budgeted) $ 160,000 500,000 January 2022 (Budgeted) Cash sales 000'09 $ 540,000 Credit sales $ 360,000 000'09 Total sales 000'099 2$ Management estimates 5% of credit sales to be uncollectible. Of collectible credit sales, 60% is collected in the month of sale and the remainder in the month following the month of sale. Purchases of inventory each month include 70% of the next month's projected total sales (stated at cost) plus 30% of projected sales for the current month (stated at cost). All inventory purchases are on-account; 25% is paid in the month of purchase, and the remainder is paid in the month following the month of purchase.…
Part D Ken has created a budget, but he wonders if the budget fits his needs. Why would it be useful for Ken to keep records of his expenses and examine them at the end of the year? BIUX² X₂ 15px Space used (includes formatting): 0/15000 O A 2 6 13 8 19 Apr 3 11:36 O
BUS 203: INTRODUCTION TO COST AND MANAGEMENT ACCOUNTING PROJECT: CASH BUDGETING ASSOCIATE DEGREE YEAR 2: SEMESTER 1 (2020/21)Ronstadt Limited’s budget for the four months from January to April includes the following data:1. MonthSalesMaterialsWagesOverheads $000$000$000$000January615115.030360February636120.033390March690135.036420April684130.040425 2. One-third of sales revenue is received one month after sale and the remainder is received two months after sale. The sales in the previous two months were: November $600 000; December $540 000.3. One-quarter of purchases of materials are paid for in the month of purchase. The remainder are paid for two months later. Purchases in the previous two months were: November $108 000; December $106 000.4. Two-thirds of the wages are paid in the month in which they are earned, and the balance is paid in the following month. The wages for the previous December amounted to $30 000.5. One-half of the overhead expenditure is paid in the month in…
+ I/ An V - MI * 00 關因 T F. PR 44 %#3 @https://ezto.mheducation.com/ext/map/index.html?_con3Dcon&e dit - Chapter 11 & 13 Review Saved Help Save & Exit The Colson Company has budgeted sales for the year as follows: 1. 13,300 15,300 19,200| 17,300 Quarter 2 Sales in units The ending inventory of finished goods for each quarter should equal 25% of the next quarter's budgeted sales in units. The finished goods inventory at the start of the year is 4,300 units. Scheduled production for the third quarter is (in units) Multiple Choice 18,725 units. O 19,675 units. Graw < Prev 16 of 20 Next 11!H pe here to search 近 Dツ +D F-4 F7 PrtSc F10 F11 Dele 65 F12 Ins 23 & 2. 9. 6 S G N Alt Ctrl
Exam Business XYZ has the following projected budget and actual budget for a given month: Budget Actual $25,000 25,575 Рayroll Inventory 12,500 11,900 Rent 7,500 7,600 Services 5,000 5,200 Calculate the percent change that the total of all categories is over budget. [?]% Give your answer as a percent rounded to the nearest tenth. Enter Copyright 2003 - 2021 Acellus Corporation. All Rights Reserved.
A. Discuss the purpose of the cash budget. B. If the cash for the first quarter of the fiscal year indicates excess cash at the end of each of the first two months, how might the excess cash be used?
Gretchen's Short-Term Budget Worksheet Spending Purpose Income Date Source Amount Date Amount $423.52 | 6/03/20 50.00 | 6/12/20 423.52 6/15/20 25.00 6/23/20 8.92 | 6/25/20 6/07/-- wages new sweater $ 33.86 6/09/-- birthday gift car insurance 48.29 6/21/-- rent 350.00 wages babysitting job savings interest 6/23/-- credit card bill 296.04 telephone bill groceries doctor's visit 6/30/-- 53.41 6/26/20 69.30 6/29/20 50.00 Totals $930.96 $900.90 3. Which types of spending might not be the same from month to month?
Good night Please answer question 2 Thanks in advance Makers Ltd. manufactures and sells two products, Abba and Baba. In July 2018 Makers’Budget Department gathered the following data in order to prepare the individual budgets inthe master budget for 2019: 2019 Projected Sales:Product Unit PriceAbba 80,000 $ 190Baba 60,000 $ 270 2019 Inventories in Units: Expected Target:Product January 1, 2019 December 31, 2019Abba 22,000 26,000Baba 9,000 10,000 To produce 1 unit of Abba and Baba, the following direct materials are used:Direct Material Unit Abba BabaA Pounds 5 6B Pounds 3 4C…
Creat an initial budget sheet showing the sistribution of $100,000 use the example's format on EXCEL.
Data Year 2 Quarter Year 3 Quarter 1 2 3 4 1 2 Budgeted unit sales 40,000 60,000 100,000 50,000 70,000 80,000 • Selling price per unit • Accounts receivable, beginning balance • Sales collected in the quarter sales are made • Sales collected in the quarter after sales are made • Desired ending finished goods inventory is • Finished goods inventory, beginning • Raw materials required to produce one unit • Desired ending inventory of raw materials is • Raw materials inventory, beginning • Raw material costs • Raw materials purchases are paid and • Accounts payable for raw materials, beginning balance $12 per unit $65,000 75% 25% 30% of the budgeted unit sales of the next quarter 12,000 units 5 pounds 10% of the next quarter's production needs 23,000 pounds $0.80 per pound 60% in the quarter the purchases are made 40% in the quarter following purchase $81,500 •Direct labor cost per hour •Direct labor hour per unit $15 per hour 0.2 hour per unit $2 per hour $60,000 •Variable MOH rate…