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
nasty-shy [4]
3 years ago
12

Dinklage Corp. has 4 million shares of common stock outstanding. The current share price is $83, and the book value per share is

$8. The company also has two bond issues outstanding. The first bond issue has a face value of $90 million, a coupon of 6 percent, and sells for 98 percent of par. The second issue has a face value of $60 million, a coupon of 7 percent, and sells for 106 percent of par. The first issue matures in 21 years, the second in 3 years. a. What are the company's capital structure weights on a book value basis? Equity/Value= Debt/Value=
Business
1 answer:
olchik [2.2K]3 years ago
4 0

Answer:

0.175824; 0.8242

Explanation:

Equity 1 = Shares of common stock outstanding × Book value per share

             = 4,000,000 × $8

             = $32,000,000

Debt 1 = $90,000,000

Debt 2 = $60,000,000

Total value = Equity 1 + Debt 1 + Debt 2

                  = $32,000,000 + $90,000,000 + $60,000,000

                  = $182,000,000

Weight of equity 1:

= Equity 1 ÷ Total value

= $32,000,000 ÷ $182,000,000

= 0.175824

Weight of debt 1:

= Debt 1 ÷ Total value

= $90,000,000 ÷ $182,000,000

= 0.494505

Weight of debt 2:

= Debt 1 ÷ Total value

= $60,000,000 ÷ $182,000,000

= 0.32967

Equity/Value = 0.175824

Debt/Value = Weight of debt 1 + Weight of debt 2

                    =  0.494505 + 0.32967

                    = 0.8242

You might be interested in
A European-based company that makes all of its goods at a plant in Brazil and then exports the Brazilian-made goods to country m
Leviafan [203]

Answer:

E

Explanation:

has no interest in whether the euro grows stronger or weaker versus the Brazilian real unless its chief competitors are other companies located in countries whose currency is also the euro.

3 0
3 years ago
After several years of study as a part-time student, Alex recently earned a degree in marketing at a local college. The growth i
e-lub [12.9K]

Answer:

A) TRUE

Explanation:

Updating marketing skills is not unrelated to modern demands in a global environment influenced by technological disruption. The need to keep abreast of changes in digital marketing for instance is essential if you have to stay relevant in the world of marketing.

8 0
3 years ago
Knowing that $45,500 is a very good price for an LS-400, Mike is the first customer to appear at the Larson lot on Saturday, Oct
Grace [21]

Answer:

Yes

Explanation:

Based on the information provided within the question we can say that Yes, the dealership is contractually bound to sell Mike the car at that price. This is assuming that the ad handed to the dealership by Mike is an actual ad that was designed and published by the dealership. If this is the case the dealership must uphold their price or it will be considered false advertisement and Mike would have a basis on which to sue the business.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

4 0
3 years ago
Lexi buys a food processor and uses it without any problems. She loans the processor to Jill, and Jill is injured when a part fl
Damm [24]

Answer:

Jill cannot hold the manufacturer responsible for her injury.

Explanation:

The above question is incomplete as there are several answer options which are listed below;

• Jill can hold the manufacturer liable for her injury as long as Lexi was in the room when she got

• Jill can hold the manufacturer liable for her injury

• Jill cannot hold the manufacturer responsible for her injury

• Lexi can hold the manufacturer liable for Jill's injury.

The above answer - Jill cannot hold the manufacturer responsible for her injury, is true according to the rule of privity of contract. The rule states that a person who is not a party to a contract does not have right to sue or be sued and to enforce the obligations arising from the contract, unlike a person who is a party to the contract.

With regards to the above scenario, Lexi, who buys a food processor is the party to the contract here, hence can sue and be sued in case of any injury suffered by her, however, Jill whom food processor was loaned to, is the third party here, hence not covered by the rule of privity of contract.

7 0
3 years ago
Inventory is an extra cost associated with the Aggregate Production Planning strategy of _____
goldfiish [28.3K]

Answer:

Production

Explanation:

6 0
2 years ago
Other questions:
  • The average annual return over the period 1926-2009 for the S&P 500 is 12.0%, and the standard
    7·1 answer
  • Which of the three economic systems (market, planned, and mixed) do you believe address the issue of scarcity the best?
    11·1 answer
  • Stephanie receives high praise from her boss when she attracts a new client to her firm. this praise leads stephanie to work har
    7·2 answers
  • The shape of the ______________ involves a tradeoff between unemployment and inflation.
    7·1 answer
  • Goodwill represents the excess of the implied value of an acquired company over the
    12·1 answer
  • Costs incurred regardless of the number of units of a product that are produced or sold are called:
    10·2 answers
  • Which of the following forms of business organizations does not have the pass-through feature of income and losses? a. partnersh
    6·1 answer
  • When you share a board with a team member in hootsuite analytics, you can allow that team member to adjust the parameters of the
    6·2 answers
  • Durable goods are: a. consumers' goods b. raw materials combined to produce consumer goods c. those that must be replaced after
    6·1 answer
  • A _________ specializes in developing plans and recommendations that meet the software and system needs of an organization.
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!