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Free_Kalibri [48]
2 years ago
13

Hero Manufacturing has 5 million shares of common stock outstanding. The current share price is $84 and the book value per share

is $7. The company also has two bond issues outstanding, both with semiannual coupons. The first bond issue has a face value $60 million and a coupon of 7 percent and sells for 94 percent of par. The second issue has a face value of $35 million and a coupon of 8 percent and sells for 107 percent of par. The first issue matures in 22 years, the second in 4 years. a. What are the company's capital structure weights on a book value basis
Business
1 answer:
ludmilkaskok [199]2 years ago
3 0

Answer:

The company's capital structure weights on a book value basis are:

a. 28.57% for equity, and

b. 71.43% for debt.

Explanation:

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Chisholm Associates uses the indirect method to prepare the operating activities section of the statement of cash flows. The fol
Kobotan [32]

Answer:

$58100

Explanation:

The cash flow statement categories the company's transactions in a financial period into 3 groups; these are operating, investing and financing.

The net profit/loss, depreciation, changes in current assets (other than cash) and liabilities are considered as operating activities including income taxes.  

The sale of assets, interest received, purchase of investments are examples of investing activities while the issuance of stocks, debt principal deduction (loan settlement), issuance of debt securities etc are examples of financing activities.

An increase in an asset other than cash is an outflow of cash while an increase in liabilities is an inflow of cash. A decrease in an asset other than cash is an inflow of cash while an decrease in liabilities is an outflow of cash.

Change in

Accounts receivable = $ 42,550 - $ 32,100=

 = $10450   (Asset)

Prepaid insurance = 3,550 - 6,700

= -$3150  (Asset)

Accounts payable = 28,350 - 26,100  

= $2250  (liability)

Unearned revenue = 6,350 - 8,500

= -$2150  (liability)

The net cash flows from operating activities

= $65,500 - $10450  + $3150  - $2250  + $2150

= $58100

7 0
3 years ago
Give 3 Examples of Product/Service
grigory [225]

Answer:

Goods are items you buy, such as food, clothing, toys, furniture, and toothpaste. Services are actions such as haircuts, medical check-ups, mail delivery, car repair, and teaching.

Explanation:your welcome

7 0
3 years ago
A local firm has debt worth $200,000, with a yield of 9%, and equity worth $300,000. It is growing at a 5% rate, and its tax rat
Over [174]

Answer:

local firm has debt worth $200,000, with a yield of 9%, and equity worth $300,000. It is growing at a 5% rate, and its tax rate is 40%. A similar firm with no debt has a cost of equity of 12%. Under the MM extension with growth, what is the value of your firm's tax shield, i.e., how much value does the use of debt add?

Explanation:

8 0
3 years ago
National income and product data are generally revised. what effects would the following revisions have on consumption, investme
Flauer [41]

The effects are:

1) There will be a $24 million boost in GDP and consumption.

2) Net exports will decrease by $29 000 while consumption rises by $29 000. GDP stays the same.

3) The GDP and investment will both rise by $12.43 million.

2) Net exports will fall by $23.12 million, while investment rises by that same amount. GDP stays the same.

Complete Question: National income and product data are generally revised. What effects would the following revisions have on consumption, investment, government purchases, net exports, and GDP?

1.) It is discovered that consumers bought $24 million more laptops than previously thought. The computers were manufactured in California.

2.) It is discovered that consumers bought $29 thousand more laptops than previously thought. The computers were manufactured in China.

3.) It is discovered that businesses bought $12.43 million more laptops than previously thought. The computers were manufactured in California.

4.) It is discovered that businesses bought $23.12 million in more laptops than previously thought. The computers were manufactured in China.

National Income: The whole of a country's current production income, comprising interest, rental income, business after-tax profits, and employee remuneration, is known as National Income.

To learn more about National Income, visit the following link:

brainly.com/question/20519015

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8 0
1 year ago
Westside Plumbing and Heating Company is offered a contract for$100,000 to provide plumbing for a new building. The labor and eq
Reika [66]

Answer:

Westside Plumbing and Heating Company

Westside should accept the contract.

By accepting the contract at the price of $100,000, Westside incurs a total cost of $97,500 and makes a little profit of $2,500 ($100,000 - $97,500).  The contract enables Westside to utilize the materials that it has in inventory instead of allowing it to deteriorate further in value.

Explanation:

a) Data and Calculations:

Contract price = $100,000

Labor and equipment costs = $60,000

Original cost of materials = $50,000

Materials market price = $37,500

Total costs to be incurred = $97,500 ($60,000 + $37,500)

Profit to be earned = $2,500 ($100,000 - $97,500)

4 0
2 years ago
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