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- Million Yuan Warehouses has a cost of equity capital of 10.5%, existing bonds with yield to maturity of 5%, and the corporate tax rate is 21%. If the firm's D/E ratio is 0.46, what is the firm's WACC? A. 8.95% B. 8.44% C. 9.55%The Allianz Company produces a specialty wood furniture product, and has the following information available concerning its inventory items: Relevant ordering costs per purchase order $510 Relevant carrying costs per year for each product: Required annual return on investment 15% Required other costs per year $7 Annual demand is 30,000 products per year. The purchase price per product is $50. What is the annual relevant carrying costs?ASSETS LIABILITIES Total Reserves $3,000,000 Deposits $10,000,000 Loans $7,000,000 Total $10,000,000 Total $10,000,000 (C) What is the maximum amount of money that can be created by this bond transaction?
- Letang Tsipane started a business restaurant called Letang Coffee on 1 May 2023 The following balances and totals were in the General Ledger on 1 May 2023: Capital R 45 000 Trading stock R 38 744 Debtors control R 27 800 Bank R 2008 Sales R 30 586 Cost of sales R 20 389 The following balance occurred in the Debtors ledger on 1 May 2023: T. Jacobs P. Khumalo R 3 000 R 5700 REQUIRED: Record the given transactions in the following Journals: 1. Cash Receipts Journal, with Analysis columns for Analysis of receipts, Bank, Sale Cost of Sales, Debtors control and Sundry accounts; 2. Debtors Journal, with Analysis columns for Sales and Cost of sales 3. Post from the Journals to the following accounts in the General ledger: Capital, Bank, Trading Stock; Debtors Control; Sales, Cost of sales 4. Post to the applicable accounts in the Debtors ledger of Letang Coffee 5. Prepare the List of Debtors. TRANSACTION FOR MAY 2023: 1. Received EFT payment from the owner Letang Tladi for R250 000 as her…Liability payments of $482, $317, and $499 each due to be paid in 2, 5 and 7 years from now, respectively. Asset cash-flow consists of Aj and A2 in 4 year and 6 years from now, respectively. If the yield curve of for all maturities is 11%, find Aj and A2 that ensures an Asset-Liability matching. (a) What is the value of A¡? (b) What is the value of A2?Question(4): A power plant is being considered in the dead sea location. For an initial investment of $130 million, annual net revenues are estimated to be $15 million in years 1-5 and $20 million in years 6-20. Assume no residual market value for the plant. a. What is the simple payback period for the plant?
- The Pyro Corporation has outstanding twenty thousandshares of common stock, of which nineteen thousandare owned by Peter B. Arson; five hundred shares areowned by Elizabeth Arson, his wife; and five hundredshares are owned by Joseph Q. Arson, his brother. Thesethree individuals are the officers and directors of thecorporation. The Pyro Corporation obtained a $750,000fire insurance policy to cover a certain building itowned. Thereafter, Peter B. Arson set fire to the building, and it was totally destroyed. Can the corporationrecover from the fire insurance company on the$750,000 fire insurance policy? Why or why not?According to indirect method of cash flow statement, one of the adjustments needed to record is the adjustment about the useful lives of non-current assets. Select one: 1- True 2-FalsePhil’s Flowers (PF) currently has 5,600,000 shares of stock outstanding that sell for $117 per share. Assuming no market imperfections or tax effects exist, what will be the total number of shares and the share price after each of the following? (Please consider each one independently). c) PF has a $2.50 cash dividend? (Step by step solutions )
- The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash Accounts receivable Inventory Buildings and equipment, net Accounts payable Common shares Retained earnings a. The gross margin is 25% of sales. b. Actual and budgeted sales data are as follows: March (actual) April May June $50,000 $60,000 $72,000 $ 8,000 20,000 36,000 120,000 21,750 150,000 12,250 July $90,000 $48,000 c. Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following sale. The accounts receivable at March 31 are the result of March credit sales. d. Each month's ending inventory should equal 80% of the following month's budgeted cost of goods sold. e. One-half of a month's inventory purchases is paid for in the month of purchase; the other one-half is paid for in the following month. The accounts payable at March 31 are the result of March purchases of inventory. f. Monthly expenses are as follows:…1. Choose True or False for each of the following statements: a) Sensitivity analysis is concerned with determining how much variation infinancial data, the decision maker can have to affect the economic decision. b) Useful life is a period of time that yields the minimum equivalent uniformannual cost of owning and operating as asset. c) Depreciation is a reduction in value of an asset, which reflects its actualusage during ownership. d) In an optimistic estimation of MARR, we expect to see a lower MARR thanthat of pessimistic. e) If one of extreme FW values, i.e., optimistic and pessimistic scenarios, ofan alternative is positive and another one is negative, a go-decision ismade without further analysis. f) Recovery period refers to the depreciable life of an asset. g) Spider plot is used to show the amount of changes on the value of morethan one factor at a time. h) The book value at the end of useful life might not be equal to the salvagevalue when declining balance with switchover…PLS HELP ASAP ON BOTH