Choose and describe a business that you would expect to have highly liquid assets and share a photo of that business (or company
logo). Which specific assets are highly liquid and why do you think that?
1 answer:
Answer:
I have chosen Apple Inc.
Explanation:
Apple Inc is a tech giant and manufactures innovative and most differentiated telecommunication products, music products, computer products, application services, etc which is highly valued among its customers. That's the reason why Apple is one of the most highly valued company in the world with almost $137 billion cash balance. This cash balance has been increased by $20 billion in the last three years which shows its higher profitability and that its inventory is highly liquid asset because it is quickly converted into cash. Furthermore, the greater demand of product and customer loyalty has strengthen its position all because of unmatched innovation introduced in each of its product every year. The greater cash balance shows that the company has greater sales and has higher profit margin on its unmatched product.
The picture of Apple headquarter and of its logo are given below:
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Answer:
Weight of debt = 57.83 %
Explanation:
given data
number of shares = 7,100
price = $94 per share
number of bonds = 600
mature time = 30 year s
coupon rate = 6.8 percent
bonds par value = $2,000
sell = 108.5 percent
stock outstanding = 6,000 shares
stock outstanding price = $47 per share
to find out
capital structure weight of the debt
solution
first we get here Equity market value that is express as
Equity market value = number of shares × price per share
Equity market value = 7100 × $94
Equity market value = $667,400
and
current debt value will be here as
current debt value = number of bonds × price per bond
current debt value = 600 × (1.085 × 2000)
current debt value = $1,302,000
and now Preferred stock value will be
Preferred stock value = stock outstanding × stock outstanding price
Preferred stock value = 6,000 × $47
Preferred stock value = $282000
and total capital will be as
Total capital = Equity market value + current debt value + preferred stock value ..................1
put here value
Total capital = $667,400 + $1,302,000 + $282000
total capital = $2251400
so here Weight of debt will be
Weight of debt = debt value ÷ total capital ..............2
Weight of debt =
Weight of debt = 0.578306
Weight of debt = 57.83 %