Question 14 Your company has compiled the folowing data which is based on cument costs reiative to is sources of external capital ie long-tem debt, preferred stock and common stock equity for various ranges of finanding Source of Capital Long derm debt Ater-tax Cost Range of Total New Financing 1697504 3259148 12 3259149 o above Pretered stock 17 936034 22 936036 o above Common stock equily 18 1141333 2808705 3549127 21 1141334 o 25 280870S 3549127 o above Curert retained eamirgs in coming year Cont of retained eamings based on curert eamings The target capital structure proportions are Target capital structure Long-derm debt Profered stock Equty 628968 18 % 32 % 11 % 57 % Calculate the WACC prior bo he fm exhausting its retained earnings Acswer The fem expects is ranga of total new francing to be Calcuate the WACC based on new range Answer 3156574

use EXCEL and provide Cell References for Calculations.

Back to Assignment Attempts 0 Keep the Highest 0/2 5. The Cost of Capital: Cost of New Common Stock If a firm plans to issue new stock, flotation costs (investment bankers' fees) should not be ignored. There are two approaches to use to account for flotation costs. The first approach is to add the sum of flotation costs for the debt, preferred, and common stock and add them to the initial investment cost. Because the investment cost is increased, the project's expected rate of return is reduced so it may not meet the firm's hurdle rate for acceptance of the project. The second approach involves adjusting the cost of common equity as follows: Cost of equity from new stock r D IP-Fi +6 The difference between the flotation-adjusted cost of equity and the cost of equity calculated without the flotation adjustment represents the flotation cost adjustment. Quantitative Problem: Barton Industries expects next year's annual dividend, D₁, to be $2.50 and it expects dividends to grow at a…

Insight Ltd. has the following capital Structure & after-tax Cost for different sources of funds used: Source of Funds Amount After-tax Cost Debt 15,00,000 5 Pref. Shares 12,00,000 10 Eq. Shares Retained Earnings 18,00,000 12 15,00,000 11 You are required to Calculate Weighted Average COC.

Which of the following stock investments should be accounted for using the cost method? Group of answer choices.... Investments of less than 20%. Investments between 20% and 50%. Investments of less than 20% and investments between 20% and 50%. All stock investments should be accounted for using the cost method.

Financial Statement Analysis Compute for Leverage Ratio for year 2018 - 2020: a. Debt Ratio b. Debt to Equity Ratio c. Time Interest Earned Ratio

QUESTION 17 A company has a Return on Equity of 0.39, a Profit Margin of 0.2 and Total Asset Tumover of 0.55. Using this information calculate the Equity Multiplier?

Presented here are the financial statements of Sunlard Cornpany.SINI.AND COWANYConvaratWeD«rnber 31CashAccounts receivableInventccyProperty. plant. equipmentAccumu lated depreciationTotalLiabilities and Stockholders' EquityAccounts payableIncome taxes payableBonds payableCommon stockRetained earningsTotal537.400329003060059.700(29.100)"31500S2&3007.50027.9001860049.200S1315002021S20.soo20.00077.900(23500)S113000s 16.5003280014.20041300Silaooo

classified stock founders’ shares American depository receipts (ADRs) Euro stock Yankee stock market price (value), intrinsic (theoretical) value, growth rate, g required rate of return, dividend yield capital gains yield expected rate of return, constant growth model nonconstant growth P/E ratio economic value added (EVA) Define All Words

USE EXCEL and show cell references.