What's the current yield of an 8.15 percent coupon corporate bond quoted at a price of 94.30?

Baron Corporation has a target capital structure of 65 percent common stock, 10 percent preferred stock, and 25 percent debt. It

astraxan [27]

Answer:

WACC is 7.24%

After tax cost of debt is 3.95%

Explanation:

WACC=Ke*E/V+Kd*D/V*(1-t)+Kp*P/V

Ke is the cost of equity of 9% or 0.09

Kd is the cost of debt at 5% or 0.05

Kp is the of preferred stock of 4% or 0.04

E is the weight of equity of 65% 0r 0.65

D is the weight of debt of 25% 0.25

K is the weight of preferred stock of 10% or 0.10

t is the tax rate of 21% or 0.21

WACC=(0.09*0.65)+(0.05*0.25*1-0.21)+(0.04*0.10)

WACC=(0.09*0.65)+(0.05*0.25*0.79)+(0.04*0.10)

WACC=7.24%

after tax cost of debt=pretax cost of debt*(1-t)

=0.05*(1-0.21)

=0.0395=3.95%

5 0

4 years ago

Highly Suspect Corp. has current liabilities of $401,000, a quick ratio of 1.50, inventory turnover of 3.70, and a current ratio

Scrat [10]

Answer:

$3,115,770

Explanation:

Given:

Current ratio = 3.60

Current liabilities = $401, 000

Quick ratio = 1.50

Inventory turnover = 3.70

Current ratio is calculated by dividing your current assets by your current liabilities.

$Current\ ratio = \frac{Current\ Assets}{Current\ Liabilities}$

$3.60 = \frac{Current\ Assets}{401, 000}$

Current Assets = 3.60 × 401,000

= $1,443,600

$Quick\ ratio = \frac{(Current\ Assets\ -\ Inventory)}{Current Liabilities}$

$1.50 = \frac{1,443,600\ -\ Inventory}{401,000}$

1.50 × 401,000 = 1,443,600 - Inventory

601,500 = 1,443,600 - Inventory

Inventory = 1,443,600 - 601,500

= $842,100

$Inventory\ Turnover = \frac{Cost\ of\ Goods\ Sold}{Inventory}$

$3.70 = \frac{Cost\ of\ Goods\ Sold}{842,100}$

Cost of Goods Sold = 3.70 × 842,100

= $3,115,770

8 0

3 years ago

Thomas asked a co-worker out on a date. The co-worker laughed and started making fun of him in front of other employees. For Tho

chubhunter [2.5K]

Bullying or Being mean/rude. Making fun of others is not pleasant so to the victim, this would be bullying and or being rude/mean

7 0

3 years ago

Quantities $r$ and $s$ vary inversely. When $r$ is $1200,$ $s$ is $0.35.$ What is the value of $s$ when $r$ is $2400$? Express y

nignag [31]

Answer:

The value of s is 0.175.

Explanation:

Given,

r and s vary inversely,

That is,

$r\propto \frac{1}{s}$

$\implies r=\frac{k}{s}$

Where, k is the constant of proportionality,

We have, r = 1200 if s = 0.35,

$\implies 1200 = \frac{k}{0.35}$

$\implies k=1200\times 0.35 = 420$

Thus, the equation that shows the relation between r and s is,

$r=\frac{420}{s}$

$\implies s=\frac{420}{r}$

If r = 2400,

$s=\frac{420}{2400}=0.175$

5 0

3 years ago

A coal mine cost $1,003,000 and is estimated to hold 50,000 tons of coal. There is no residual value. During the first year of o

avanturin [10]

Answer:

The answer is $120, 360

Explanation:

Depletion is the allocation of cost to an accounting period as units of a natural resource are mined or consumed.

The formula for calculating depletion per unit is depletion per unit is:

the number of consumed units of the natural resources x the cost per unit.

Total cost is $1,003,000

Unit consumed per unit is

6,000 tons ÷ 50,000 tons

0.12

Therefore, depletion per unit is

$1,003,000 x 0.12

=$120, 360

5 0

4 years ago