subject
Business, 14.06.2021 14:00 melG101

Assume that you are appointed as a finance manager of a FMCG company. How will you design the capital structure of the company if the company needs to raise capital from $500,000 to $1,000,000 with the mix of Equity and Debt. Determine the EPS in each case and evaluate the best possible actions for the company. During the production process if the company needs to raise $ 200,000 more capital then which option suits the company? Through Debt or Equity?​

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 07:00
Pennewell publishing inc. (pp) is a zero growth company. it currently has zero debt and its earnings before interest and taxes (ebit) are $80,000. pp's current cost of equity is 10%, and its tax rate is 40%. the firm has 10,000 shares of common stock outstanding selling at a price per share of $48.00. refer to the data for pennewell publishing inc. (pp). pp is considering changing its capital structure to one with 30% debt and 70% equity, based on market values. the debt would have an interest rate of 8%. the new funds would be used to repurchase stock. it is estimated that the increase in risk resulting from the added leverage would cause the required rate of return on equity to rise to 12%. if this plan were carried out, what would be pp's new value of operations? a. $484,359 b. $521,173 c. $584,653 d. $560,748 e. $487,805
Answers: 1
question
Business, 22.06.2019 10:00
Suppose an economy has only two sectors: goods and services. each year, goods sells 80% of its outputs to services and keeps the rest, while services sells 62% of its output to goods and retains the rest. find equilibrium prices for the annual outputs of the goods and services sectors that make each sector's income match its expenditures.
Answers: 2
question
Business, 22.06.2019 17:30
Palmer frosted flakes company offers its customers a pottery cereal bowl if they send in 3 boxtops from palmer frosted flakes boxes and $1. the company estimates that 60% of the boxtops will be redeemed. in 2012, the company sold 675,000 boxes of frosted flakes and customers redeemed 330,000 boxtops receiving 110,000 bowls. if the bowls cost palmer company $3 each, how much liability for outstanding premiums should be recorded at the end of 2012?
Answers: 2
question
Business, 22.06.2019 17:40
Turrubiates corporation makes a product that uses a material with the following standards standard quantity 8.0 liters per unit standard price $2.50 per liter standard cost $20.00 per unit the company budgeted for production of 3,800 units in april, but actual production was 3,900 units. the company used 32,000 liters of direct material to produce this output. the company purchased 20,100 liters of the direct material at $2.6 per liter. the direct materials purchases variance is computed when the materials are purchased. the materials quantity variance for april is:
Answers: 1
You know the right answer?
Assume that you are appointed as a finance manager of a FMCG company. How will you design the capita...
Questions
question
Mathematics, 14.01.2020 01:31
question
Computers and Technology, 14.01.2020 01:31
question
Mathematics, 14.01.2020 01:31
question
Mathematics, 14.01.2020 01:31
question
Mathematics, 14.01.2020 01:31
question
Mathematics, 14.01.2020 01:31
Questions on the website: 13722360