Meyer inc's total invested capital is $610,000, and its total debt outstanding is $185,000. the new cfo wants to establish a total debt to total capital ratio of 55%. the size of the firm will not change. how much debt must the company add or subtract to achieve the target debt to capital ratio? a. $165,550 b. $115,885 c. $164,045 d. $185,115 e. $150,500
Answers: 3
Business, 22.06.2019 07:00, ladybugys
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
Business, 22.06.2019 19:30, jaybeast40
Oz makes lion food out of giraffe and gazelle meat. giraffe meat has 18 grams of protein and 36 grams of fat per pound, while gazelle meat has 36 grams of protein and 18 grams of fat per pound. a batch of lion food must contain at least "46,800" grams of protein and 70,200 grams of fat. giraffe meat costs $1/pound and gazelle meat costs $2/pound. how many pounds of each should go into each batch of lion food in order to minimize costs? hint [see example 2.]
Answers: 1
Business, 22.06.2019 23:10, katrinanuez
Which investment has the liquidity and can be converted into cash easily?
Answers: 2
Business, 23.06.2019 00:20, hdhdhd49jdhd
Barney corporation recognized a $100 million preferred stock balance on 12/31/2019. on january 1, 2020, barney issued $10 million in preferred dividends. on the same date, barney raised an additional $20 million via a new issuance of preferred stock. on december 31, 2020, the market value of the original amount of preferred shares rose $5 million. under us gaap, the 12/31/2020 year ending preferred stock balance is:
Answers: 3
Meyer inc's total invested capital is $610,000, and its total debt outstanding is $185,000. the new...
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