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3 years ago

Arlington Corporation's financial statements (dollars and shares are in millions) are provided here.

Business

1 answer:

bekas [8.4K]3 years ago

7 0

Answer:

Explanation:

Operating capital = Current assets - current liabilities

2016 2015

Current assets 62,835 50000

Current liabilities 17,800 16000

(Current liabilities - note payable)

Operating working capital 45,035 34000

Free cash flow for 2016

EBIT ( 1-40%) 43000*.6 = 25800

Add back depreciation 3000

Less capital expenses (1000)

(47000-46000)

Less change in working capital

45,035-34000 (11035)

16,075

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A firm has issued $25 million in long-term bonds that now have 9 years remaining until maturity. The bonds carry a 9% annual cou

tensa zangetsu [6.8K]

Answer:

40.43% debt financed; 6.89% after-tax cost of debt

Explanation:

In order to determine the portion of the firm financed by debt ,we need first of all ascertain the market value of the company

Market value of the firm=market value of equity+market value of debt

market value of equity=$35 million

market value of debt=$25 million*$950.12/$1000=$23.75 million

market value of firm=$ 23.75 million+$35 million= $58.75 million

portion of debt finance=market value of debt/firm's value

=23.75/ 58.75 =40.43%

The after tax cost =pretax cost of debt*(1-t) where t is the tax rate of 30%

pretax cost of debt is the same yield to maturity computed using rate formula in excel

=rate(nper,pmt,-pv,fv)

nper is the number of times the bond would pay interest which is nine times

pmt is the annual interest payment=$25 million*9%=$2.25 million

pv is the current price of the bond=$23.75 as shown above

fv is the face value of $25 million

=rate(9,2.25,-23.75,25)=9.86%

after tax cost of debt=9.86% *(1-0.3)=6.89%

6 0

3 years ago

A graph has quantity on the x-axis and price (dollars) on the y-axis. A demand line goes through (20, 60), (40, 45), (60, 30). A

vesna_86 [32]

Answer:

This answer is B

Explanation:

i used the answer given on here and got it wrong, its B on edge2020

6 0

3 years ago

Welfare analysis: Basic conceptsIdentify whether each of the following statements best illustrates the concept of consumer surpl

STALIN [3.7K]

Answer:

Producer surplus

Neither

Consumer surplus

Explanation:

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.

Producer surplus is the difference between the price of the good and the least price the seller is willing to sell his product.

1. Price = $149

least price seller was willing to sell his laptop = $140.

Hence it's producer surplus.

2. Price = $59

there's no information on the least price the seller was willing to sell or the highest amount the buyer was willing to buy.

hence it's neither producer or consumer surplus

3. Price = $39

highest amount buyer was willing to buy = $46

Hence, it's consumer surplus

I hope my answer helps you

3 0

4 years ago

Kacy Spade, owner, invested $10,500 cash in the company in exchange for common stock. The company purchased office supplies for

Naya [18.7K]

Answer:

The trial balance of Kacy Spade showed total of $12,726 on both debit and credit as found in the attached spreadsheet

Explanation:

In preparing the trial balance, I showed the earlier postings into ledgers for those accounts that had more one transaction and I showed those ones with just a transaction in the trial balance colored-coded in yellow.

Trial balance tests the arithmetical accuracy of postings done in the ledgers by summarizing the ledgers' balances in the trial balance.

Download xlsx

8 0

4 years ago

Copper Grill Restaurant Corporation wholesales ovens and ranges to restaurants throughout the Southwest. Copper Grill Restaurant

8_murik_8 [283]

Answer:

150,000 Shares

70$ per share

Explanation:

Stock split at a rate of 3 for 1 means that holder of every 1 share will have total 3 shares after the split (e.g. he will receive additional two shares for each share he owns). Thus Copper Grill Restaurant Corporation's total shares will increase from 50,000 to 150,000 (50,000 * 3).

Per share price will be divided by 3 to arrive at approximate value of per share after the split (210 / 3) = $70 / per share.

6 0

4 years ago