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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

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JulsSmile [24]

Answer:

rate of 0.000171716533316905 = 0.017% daily

Explanation:

we need to solve for the rate of an annuity for 19 years with daily deposits of 75 dolllars to yield a principal of 1,000,000 dollars

365 days x 19 years = 6,935 days

we use goal seek on excel as follow:

on A1 we write 0.01 this will be a placeholder for the rate

then on A2 we write  =FV(A1;6935;75)

then with goal seek we definethat we want A2 equal to 1,000,000 changing A1 (rate)

which give us:

0.000171717  = 0.017% per day to achieve the goal:

C \times \frac{(1+r)^{time} -1}{rate} = FV\\  

C 75

time 6935

rate 0.000171717

75 \times \frac{1-(1+0.000171716533316905)^{-6935} }{0.000171716533316905} = FV\\  

FV $999,999.9999  

5 0
3 years ago
Once every __________, the Census Bureau does a comprehensive survey of housing and residential finance.
Amanda [17]
Once every 10 years search it up if I am wrong
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3 years ago
Outsourcing is becoming more and more common, but it is a controversial idea in the United States. Why do you think this is such
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Brainliest?
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3 years ago
Lance, Art, and Wayne have joined together to open a law practice but are struggling to manage their cash flow. They haven’t yet
mixas84 [53]

Answer:

This is very simple, they should start billing their clients right away.

You don't have to bill your clients for the full legal expenses, but they for sure need to start making some money.

It is very normal that new businesses don't get enough revenue to cover their operation expenses right away. Even for big corporations, like Amazon and FB, it may take years to reach the break even point.

When you open a business you have to keep some money as reserve to cover some expenses for at least a few months.

6 0
3 years ago
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nikklg [1K]

When a person owes more on an item (like a car or house) than it is worth, the person is said to be <u>upside down</u> on the loan.

<h3><u>Describe an upside-down loan.</u></h3>

You have an upside-down auto loan if you owe more money than the car is truly worth. You may need to make additional payments or modify your insurance coverage in order to prevent being upside-down on your loan or, at the very least, to shorten the amount of time you are in this perilous financial situation.

When you owe more on a car loan than the vehicle is worth, the loan is considered upside-down. If your car is worth $12,000 but your loan total is $15,000, for instance, your loan would be in the negative. You have $3,000 in negative equity in this situation.

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Learn more about upside-down loans with the help of the given link:

brainly.com/question/24173549

#SPJ4

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1 year ago
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