With SMART goals, what does the “T” stand for?

Filer Manufacturing has 8 million shares of common stock outstanding. The current share price is $74, and the book value per sha

GaryK [48]

Answer:

10.45%

Explanation:

First find the cost of equity for the company

RE = [$4.60*(1.05) / $74] + 0.05

RE = 0.1153, or 11.53%

Then find the YTM on both bond issues

P1 = $950 = $45*PVIFA(R%,48) + $1,000*PVIF(R%,48)

R = 4.767%

YTM = 4.767%×2

YTM = 9.53%

P2 = $1,080 = $50*PVIFA(R%,16) + $1,000*PVIF(R%,16)

R = 4.298%

YTM = 4.298%×2

YTM = 8.60%

Total Debt = 0.95($80,000,000) + 1.08*($60,000,000)

Total Debt = $140,800,000

Weight of D1 = 76,000,000 / 140,800,000

Weight of D1 = 0.5398

Weight of D2 = 64,800,000 / 140,800,000

Weight of D2 = 0.4602

Weighted Average after-tax cost of debt

RD = (1 – 0.35)*[(0.5398)*(0.0953) + (0.4602)(0.086)]

RD = .0592, or 5.92%

Market value of equity = 8,000,000*($74) = $592,000,000

Market value of debt = $140,800,000

Total market value of the company = $592,000,000 + 140,800,000 = $732,800,000

Weights of equity and debt

E/V = $592,000,000 / $732,800,000 = 0.8079

D/V = 1−E/V = 0.1921

WACC = 0.8079(0.1153) + 0.1921(0.0592)

WACC = 0.1045, or 10.45%

7 0

4 years ago

Assume there is a fixed exchange rate between the Canadian and U.S. dollar. The expected return and standard deviation of return

gregori [183]

Answer:

The expected return on the portfolio is 15.5%.

Explanation:

The expected return on portfolio formula requires multiplying every asset's weight in the portfolio by their respective expected return, then summing up all values together.

$\text{Expected Return}=W_{A}\cdot R_{A}+W_{B}\cdot R_{B}$

Here,

<em>W</em> = weight of the respective asset

<em>R</em> = expected return of the respective asset

It is provided that:

The expected return on the U.S. stock market is 18%.

The expected return on the Canadian stock market is 13%.

The proportion of money invested in both stock markets is 50%.

Compute the expected return on the portfolio as follows:

$\text{Expected Return}=W_{U}\cdot R_{U}+W_{C}\cdot R_{C}$

$=(0.50\times 0.18)+(0.50\times 0.13)\\=0.09+0.065\\=0.155$

Thus, the expected return on the portfolio is 15.5%.

4 0

3 years ago

Which describes the purpose of minimum-balance fees?

Cerrena [4.2K]

Answer:

make sure customers keep sufficient funds in their account

Explanation:

Minimum balance is the amount that an account holder has to be kept in the account. The minimum amount is to be maintained so as to enjoy the benefits of the account like receiving interests. The minimum balance defers from one bank to another. Maintaining the minimum helps in accessing loans and other facilities.

5 0

3 years ago

Like many college students, Stephanie applied for and got a credit card that has an annual percentage rate (APR) of 18%. The fir

Mrac [35]

Answer:

A

Explanation:

A financial calculator is needed to calculate the number of months needed to pay off for the TV

FV = 0

PMT = $10

PV = -$300

I = 18% / 12 = 1.5%

N = 40.15 years

6 0

3 years ago

If no page number or paragraph number is available when directly quoting from an electronic source, then the heading or section

pishuonlain [190]

Answer:

a. True

Explanation:

Plagiarism can be defined as the act of representing or using an author's work, ideas, thoughts, language, or expressions without their consent, acknowledgement or authorization.

This ultimately implies that, plagiarism is an illegal act of presenting another author's intellectual work or copyrighted items by using their ideas, thoughts, language or expressions, word for word without authorization or permission from the original author.

The four (4) common types of plagiarism are;

1. Copy and paste: this typically involves copying another author's work word for word and pasting it as yours without proper citation or reference with quotation marks.

2. Improper citation : this involves an author failing to provide an in-text reference or citation of the original author appropriately.

3. Find and replace: this typically involves an author finding some words to change (replace) in the original literary work.

4. Fabrication: this occur when an author makes up unverified or false data to use in his or her literary work.

Attribution can be defined as a process which typically involves the citation (reference) of an original source of information such as a quote, paraphrase or summary, using the author's full name and job title or position as the case may be.

Furthermore, if there is no page number or paragraph number when directly quoting from an electronic source, then one is permitted to use the heading or section name along with the number of the paragraph within that section.

6 0

3 years ago