Gulf Shores Inn is comparing two separate capital structures. The first structure consists of 315,000 shares of stock and no debt. The second structure consists of 270,000 shares of stock and $1.90 million of debt. What is the price per share of equity?

The Company is comparing two different capital structures, an all - equity plan (Plan I) and a levered plan (Plan II). Under Plan I, The Company would have 405, 053 shares of stock outstanding. Under Plan II, there would be 337, 151 shares of stock outstanding and $5.9 million in debt outstanding. The interest rate on the debt is 9.05 percent, and there are no taxes. The breakeven EBIT is $

Andyco, Inc., has the following balance sheet and an equity market-to-book ratio of 1.8. Assuming the market value of debt equals its book value, what weights should it use for its WACC calculation? Assets $1,090 Liabilities & Equity Debt $460 Equity $630 The equity weight for the WACC calculation is __ % ? ​(Round to two decimal​ places.)

Company E has 4 million shares of stock outstanding, 1 million shares of preferred stock, and 20,000 bonds.  If the common shares sell for $28 per share, the preferred shares sell for $18.50 per share, and the bonds are selling for 97% of par, what would be the weights used in the calculation of Company E’s Weighted Average Cost of Capital (WACC)?

NFG investment company that has 4 million shares outstanding has total assets of $62 million and total liabilities of $12 million.  If this investment company charges a load of 3.5%, how much would an investor have to pay to purchase one share? . (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))

SodaFizz has debt outstanding that has a market value of $3 million. The company’s stock has a book value of $2 million and a market value of $6 million. What are the weights in SodaFizz’s capital structure?

ABC Inc. borrows money at 9%, sells bonds at 8%, and the purchasers of common stock require 13% rate of return. If the company has borrowed $40 million, sold $60 million in bonds, and sold $100 million worth of common stocks, what is the Weighted Average Cost of Capital (WACC)? If the same company from the previous question used 5% ROR for loans, 9% ROR for bonds, and 12% ROR for stocks, and also used a 50% tax rate, what is the WACC?

CO A has cash flows of $0.76 per share, earnings of $1.25 per share and 115,000 shares outstanding. Co B. is a comparable public company with a price of $60 per share, cash flows of $2.14 per share, and 510,000 shares outstanding. If Co Bis a sufficiently comparable company, what do you estimate Co B. price per share to be? Assume: Risk free rate 4% Market risk premium 7% Cost of debt 4%, beta of debt is 0. Tax rate 23%

Huntington Power Co. has issued following three securities as its long-term source of capital.  Calculate the weights of each source of capital (kd, kp, ke). Debt: 2,500 bonds outstanding, current market price of the bond is $1,080.  Preferred Stock: 3,000 shares outstanding, selling for $98. Common Stock: 60,000 shares outstanding, selling for $55 per share.     a. 42.90%; 4.67%; 52.43%   b. 45.63%; 1.72%; 59.67%   c. 42.90%; 4.67%; 55.71%   d. 59.67%; 5.08%; 35.24%   e. 45.63%; 1.72%; 52.65%   f. 42.90%; 2.23%; 52.14%

To help them estimate the company's cost of capital, Smithco has hired you as a consultant. You have been provided with the following data about the company's stock: D1 $1.45; PO = $25; and g = 6.50% (constant). What is the cost of common from issuing new stock, assuming the flotation cost is 10% of the stock price? = 13.59% 11.10% 12.94% 11.68% 12.30%