Business, 23.12.2019 21:31 izhaneedwards
The director of capital budgeting for see-saw inc., manufacturers of playground equipment, is considering a plan to expand production facilities in order to meet an increase in demand. he estimates that this expansion will produce a rate of return of 11%. the firm's target capital structure calls for a debt/equity ratio of 0.8. see-saw currently has a bond issue outstanding that will mature in 25 years and has a 7% annual coupon rate. the bonds are currently selling for $804. the firm has maintained a constant growth rate of 6%. see-saw's next expected dividend is $2 (d1), its current stock price is $40, and its tax rate is 40%. should it undertake the expansio? n calculate the cost of bonds. calculate the cost of equity. calculate the wacc
Answers: 3
Business, 21.06.2019 22:50
The winston company estimates that the factory overhead for the following year will be $1,250,000. the company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 50,000 hours. the total machine hours for the year were 54,300. the actual factory overhead for the year were $1,375,000. determine the over- or underapplied amount for the year.
Answers: 1
Business, 22.06.2019 14:50
Pederson company reported the following: manufacturing costs $480,000 units manufactured 8,000 units sold 7,500 units sold for $90 per unit beginning inventory 2,000 units what is the average manufacturing cost per unit? (round the answer to the nearest dollar.)
Answers: 3
Business, 22.06.2019 16:50
Andrea cujoli is a currency speculator who enjoys "betting" on changes in the foreign currency exchange market. currently the spot price for the japanese yen is ¥129.87/$ and the 6-month forward rate is ¥128.53/$. andrea would earn a higher rate of return by buying yen and a forward contract than if she had invested her money in 6-month us treasury securities at an annual rate of 2.50%. true/false?
Answers: 2
Business, 22.06.2019 20:10
Mikkelson corporation's stock had a required return of 12.50% last year, when the risk-free rate was 3% and the market risk premium was 4.75%. then an increase in investor risk aversion caused the market risk premium to rise by 2%. the risk-free rate and the firm's beta remain unchanged. what is the company's new required rate of return? (hint: first calculate the beta, then find the required return.) do not round your intermediate calculations.
Answers: 2
The director of capital budgeting for see-saw inc., manufacturers of playground equipment, is consid...
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