Collins groupthe collins group, a leading producer of custom automobile accessories, has hired you to estimate the firm's weighted average cost of capital. the balance sheet and some other information are provided below. assetscurrent assets $ 38,000,000net plant, property, and equipment 101,000,000total assets $139,000,000liabilities and equityaccounts payable $ 10,000,000accruals 9,000,000current liabilities $ 19,000,000long-term debt (40,000 bonds, $1,000 par value) 40,000,000total liabilities $ 59,000,000common stock (10,000,000 shares) 30,000,000retained earnings 50,000,000total shareholders' equity 80,000,000total liabilities and shareholders' equity $139,000,000the stock is currently selling for $15.25 per share, and its noncallable $1,000 par value, 20-year, 7.25% bonds with semiannual payments are selling for $875.00. the beta is 1.25, the yield on a 6-month treasury bill is 3.50%, and the yield on a 20-year treasury bond is 5.50%. the required return on the stock market is 11.50%, but the market has had an average annual return of 14.50% during the past 5 years. the firm's tax rate is 40%.68. refer to the data for the collins group. which of the following is the best estimate for the weight of debt for use in calculating the firm's wacc? a. 18.67%b. 19.60%c. 20.58%d. 21.61%e. 22.69%
Answers: 2
Business, 21.06.2019 21:40
Morgana company identifies three activities in its manufacturing process: machine setups, machining, and inspections. estimated annual overhead cost for each activity is $168,000, $315,900, an $97,200, respectively. the cost driver for each activity and the expected annual usage are number of setups 2,100, machine hours 24,300, and number of inspections 1,800. compute the overhead rate for each activity. machine setups $ per setup machining $ per machine hour inspections $ per inspection
Answers: 1
Business, 22.06.2019 04:30
Peyton taylor drew a map with scale 1 cm to 10 miles. on his map, the distance between silver city and golden canyon is 3.75 cm. what is the actual distance between silver city and golden canyon?
Answers: 3
Business, 22.06.2019 14:30
Bridge building company estimates that it will incur $1,200,000 in overhead costs for the year. additionally, the company estimates 50,000 direct labor hours will be spent building custom walking bridges for the year at a total direct labor cost of $600,000. what is the predetermined overhead rate for bridge building company if direct labor costs are to be used as an allocation base?
Answers: 3
Business, 22.06.2019 23:00
How an absolute advantage might affect a country's imports and exports?
Answers: 2
Collins groupthe collins group, a leading producer of custom automobile accessories, has hired you t...
English, 13.04.2021 05:10
Mathematics, 13.04.2021 05:10
Chemistry, 13.04.2021 05:10
Social Studies, 13.04.2021 05:10
Mathematics, 13.04.2021 05:10
English, 13.04.2021 05:10
Arts, 13.04.2021 05:10
Mathematics, 13.04.2021 05:10
Mathematics, 13.04.2021 05:10