1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ratling [72]
3 years ago
9

Santa claus enterprises has 87,000 shares of common stock outstanding at a current price of $39 a share. the firm also has two b

ond issues outstanding. the first bond issue has a total face value of $230,000, pays 7.1 percent interest annually, and currently sells for 103.1 percent of face value. the second bond issue consists of 5,000 bonds that are selling for $887 each. these bonds pay 6.5 percent interest annually and mature in eight years. the tax rate is 35 percent. what is the capital structure weight of the firms debt?
Business
1 answer:
Luba_88 [7]3 years ago
8 0

Equity =87,000*39 = 3,393,000

Debt issue 1 = 230,000*1.031 = 237,130

Debt issue 2 = 5000*887 = 4,435,000

Total debt = 4,435,000+237,130 = 4,672,130

Total capital = 4,672,130 + 3,393,000 = 8,065,130

Capital structure weight of the firm's debt = 4,672,130/8,065,130 = 0.5793

You might be interested in
Which of the following factors has the greatest impact in calculating FICO scores? Select one of the options below as your answe
SSSSS [86.1K]
The right answer for the question that is being asked and shown above is that: "c. length of credit history."  the factor that has the greatest impact in calculating FICO scores is that c. length of credit history<span>
</span>
4 0
3 years ago
E-Eyes has a new issue of preferred stock it calls 20/20 preferred. The stock will pay a $20 dividend per year, but the first di
Sever21 [200]

Answer:

You would pay approximately $35.00 today

Explanation:

The cost of the stock at the beginning of the year 20

= 20/9.75%

= 20/0.0975

= 205.13 dollars

We find the current price of the stock

= Fv/(1+r)^n

= 205.13/(1+9.75%)¹⁹

= 205.13/1.0975¹⁹

= 205.13/5.86

= $35.00

From this calculation you have to pay 35 Dollars today.

5 0
3 years ago
On February 1, 2020, Hawser Corporation purchased a parcel of land as a factory site for $960,000. An old building on the proper
Zolol [24]

Answer:

Cost of land = $1,005,000

Cost of building = $4,275,000

Explanation:

The calculation of cost of the land and new building is shown below:-

Cost of land = Purchase cost + Demolition of old building + Legal fees for title investigation and purchase contract - Salvaged materials

= $960,000 + $ 60,000 + 15,000 - $30,000

= $1,005,000

Cost of building = Architects Fees + Construction costs

= $105,000 + $4,170,000

= $4,275,000

5 0
3 years ago
When you purchase an item,
Sunny_sXe [5.5K]

Answer:

it would be C bc they sold something

4 0
3 years ago
A deficit on the current account Multiple Choice means that a nation is making international transfers. has no relationship to t
Sliva [168]

Answer:

The correct option is C

Explanation:

The deficit or shortage on the current account of the country, is defined as the measurement or determination of the trade of the company where the goods and the service value, it imports exceeds or increase the value of the products it exports.

The current account of the country states the foreign transactions of the country within the time period.

So, when there is deficit or shortage on the current account, it means that usually, it will cause deficit in the finance as well as the capital account of the country.

4 0
3 years ago
Other questions:
  • Professor buchanan informed her colleagues about the various intercom systems she had investigated. she then recommended that th
    14·1 answer
  • A borrower has applied for a refinance on her property valued at $235,000. She currently has a HELOC with a $47,000 limit and cu
    9·1 answer
  • Most of the property in command economies is owned by who​
    7·1 answer
  • "A corporate issuer is obligated to file an 8K report of significant events within how many business days of the event?"
    15·1 answer
  • Mellow Co. depreciates a $12,000 asset over five years, using the straight-line method with no salvage value. At the beginning o
    7·1 answer
  • A bond that pays interest annually yields a rate of return of 7.50 percent. The inflation rate for the same period is 2 percent.
    8·1 answer
  • Why would OB scholars avoid general concept statements such as stating everyone wants an interesting​ job?
    13·1 answer
  • An externality arises when a firm or person engages in an activity that affects the wellbeing of a third party, yet neither pays
    10·1 answer
  • Last year, 7,980 units were produced and 7,680 units were sold. There was no beginning inventory. The carrying value on the bala
    12·1 answer
  • (17) What are the 3 predominant areas of a market opportunity analysis that we must take into consideration as Marketing Manager
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!