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
What can you suggest to warner Edwards in terms of marketing strategy
inessss [21]

Answer:

Warner Bros focuses a lot on the people as an organization whether it’s the employees or the customers. The key people involved are Kevin Tsujihara (Chairman and CEO), Edward A. Romano (Vice Chairman), Toby Emmerich (President and Chief Content Officer). Its parent company TIME Warner has over 31000 employees. The Warner Bros company and its people focus on diversity that helps in multicultural expansion, workforce development and inclusive growth. It does not differentiate between its customers and focus on providing quality content to all across the globe.

I would suggest that only advertisement doesn't make people to buy it.

7 0
3 years ago
What property describes the number sentence 6+0=6
Vika [28.1K]
Six pluse zero equal six
6 0
2 years ago
Tater and Pepper Corp. reported free cash flows for 2018 of $58.1 million and investment in operating capital of $41.1 million.
DENIUS [597]

Answer:

104.6 million

Explanation:

Data provided in the question:

Free cash flows for 2018 = $58.1 million

Investment in operating capital = $41.1 million

Depreciation expense = $15.5

Taxes on EBIT in 2018 = $20.9 million

Now,

EBIT

= Free Cash Flow + Investment in operating capital + Taxes - Depreciation

on substituting the respective values, we get

EBIT = $58.1 million + $41.1 million + $20.9 million - $15.5

or

EBIT = 104.6 million

8 0
3 years ago
In terms of GNI PPP, excluding Singapore, the wealthiest nations of Southeast Asia are
shutvik [7]
<span>The wealthiest nations of Southeast Asia, excluding Singapore (which is one of the wealthiest countries in the world) are Thailand and Malaysia, with Malaysia being in the 130th position according to GNI (Gross national Income) and Thailand in the 120th position (the higher the number the bigger the GNI). After this it's Indonesia in the 72nd place. </span>
7 0
3 years ago
Independent of your answer to requirement (1), assume the company plans to produce 620,000 units of finished product in the thre
exis [7]

Answer:

Purchases= 1,595,000 pounds

Explanation:

<u>Giving the following information: </u>

Production= 620,000 units

Beginning raw materials inventory= 730,000 pounds

Desired ending inventory= 25% of the three months requirement.

Each unit requires 3 pounds of raw material.

<u>To calculate the purchases required, we need to use the following formula:</u>

Purchases= production + desired ending inventory - beginning inventory

Purchases= (620,000*3) + (620,000*3)*0.25 - 730,000

Purchases= 1,595,000 pounds

6 0
2 years ago
Other questions:
  • N increase in buyers' income in the market for radios will _______ the market price and ________ the market quantity of radios,
    8·1 answer
  • Currently, Mucho Dinero is organized into specialized departments such as marketing, finance, production and personnel. These de
    7·1 answer
  • If the demand increases by 100%, annual production will have to increase to jaw-breakers next year to meet the expected increase
    13·1 answer
  • A group of elderly men, whose government disability benefits are the sole source of income, is approached to consider an experim
    5·1 answer
  • Handy Hiking produces backpacks. In 2018, its highest and lowest production levels occurred in July and January, respectively. I
    9·1 answer
  • The Tragedy of the Commons Select one: a. occurs when social incentives are in line with private incentives. b. is only applicab
    8·1 answer
  • Maricela writes slowly. When preparing a first draft, she spends a good deal of time formatting and choosing the correct font. M
    10·1 answer
  • Prescott Bank offers you a five-year loan for $75,000 at an annual interest rate of 6.8 percent. What will your annual loan paym
    6·1 answer
  • This entire rach of children's clothes has a 25% off sign. Can you tell me how much this coat is with the discount? It's priced
    6·1 answer
  • On November 1, 2021, Tim's Toys borrows $30,000,000 at 9% to finance the holiday sales season. The note is for a six-month term
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!