Answer:
Existing Equity = 20 million
Existing debt = 60 million
Total capital = 20 million + 60 million = 80 million
a. Given company issued 30 million of equity to retire debt
Equity after raise = $20 million + $30 million = $50 million
Debt = $60 million - $30 million = $30 million
Total capital size remain at $80 million
Capital structure, Equity = $50 million/$80 million = 0.625 = 62.50%
Debt = (1-0.625) = 0.375 = 37.50%
b. The market would welcome the new issue as the risk of the firm would be reduced.
Answer:
Elementary Education → Accounting → Pharmacy → Crop Production
Explanation:
According to the employment statistics, Elementary education employs the least, and Crop production employs the largest number.
Answer:
Nonoperating
Explanation:
The activities through which revenue and expenses occur which do not take part in the operations of business is consider as nonoperating.
Answer:
$508.63
Explanation:
For this question, we use the Present value formula that is reflected in the attached spreadsheet. Kindly find it below:
Provided that
Given that,
Future value = $1,000
Rate of interest = 14%
NPER = 15 years
PMT = $1,000 × 6% = $60
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after solving this, the present value is $508.63