For a particular firm, the purchasers of common stock require an 11% rate of return, bonds are sold at a 7% interest rate and bank loans are available at 9%. The firm has a 38% combined tax rate. For the next year money available through common stock, bonds and bank loans is shown below. Funds Source Rate available Commons $40 stock 11% Million $20 Bonds 7% Million Bank $60 9% loans Million The after-tax weighted cost of capital for this firm is most nearly: 6.9% 7.2% 9.0% 9.3%

A bank has interest expense of $150 million, earning assets of $1.4 billion, and a net interest margin of 5.0%. The bank also has interest-bearing liabilities of $1.1 billion. The bank's spread ratio must be O 1.94% 1.10% 2.08% 1.65%

Binomial Tree Farm's financing includes $5 million of bank loans. Its common equity is shown in Binomial's Annual Report at $6.67 million. It has 500,000 shares of common stock outstanding, which trade on the Wichita Stock Exchange at $18 per share. What debt ratio should Binomial use to calculate its company cost of capital or asset beta? Note: Enter your answer as a percent rounded to 2 decimal places. Debt ratio %

Here is Simple Bank’s balance sheet (with associated interest rates): Assets $800 million Business Loans, 7.5% $200 million Corporate Bonds, 4.25% $25 million Reserves, Fed pays 0.5% $10 million Real Assets Liabilities $550 million Demand Deposits $360 million Time Deposits, 2.5% $25 million Preferred Shares,  3.3% $100 million Common Shares     Q. If capital requirements are 8% for loans and 6% for bonds, calculate the bank’s capital excess or deficiency.

Suppose the Schoof Company has this book value balance sheet: Current assets Fixed assets Total assets Short-term debt Long-term debt Common equity Total capital $ $30,000,000 $ 70,000,000 $100,000,000 The notes payable are to banks, and the interest rate on this debt is 7%, the same as the rate on new bank loans. These bank loans are not used for seasonal financing but instead are part of the company's permanent capital structure. The long-term debt consists of 30,000 bonds, each with a par value of $1,000, an annual coupon interest rate of 8%, and a 15-year maturity. The going rate of interest on new long-term debt, rd, is 10%, and this is the present yield to maturity on the bonds. The common stock sells at a price of $60 per share. Calculate the firm's market value capital structure. Do not round intermediate calculations. Round the monetary values to the nearest dollar and percentage values to two decimal places. Current liabilities Notes payable Long-term debt Common stock (1…

Naperville bank has total assets of $100 million and equity capital of $3 million. Its income statement in 2021 is as elow: Net Interest Income 3 Provision for Loan Losses Non-Interest Income Non-Interest Expense (4.00) 0.9 (2.50) If the bank's tax rate is 30%, what is the new balance of its equity capital? (A) $3 million B $1.82 million $1.18 million D $0.4 million I

A Corporation is planning to loan P20M at an effective interest rate of 10%. The company pays income tax at a rate of 30%. What is the cost of debt capital? a. P140,000 b. P200,000 c. P540,000 d. P600,000

Which of the following has the highest interest rate? Select one: a. Corporate Bond O b. Government Bond c. Treasury Bills d. Callable Corporate Bond The ratio that is used to compare the market value between companies is Select one: a. Equity Muitiplier b. EPS c. P/E d. Profit margin You have 50,000BD which you can use to either buy cars or to deposit in a bank account for 1 year. Inflation for the year is estimated to be 7%, and the bank deposit rate is 4.5%. if you had a goal of purchasing as many cars as possible, when should you buy them? Select one: a. Now b. After a year c. After 2 years d. Not enough information to decide

We are given the following information for the Pettit Corporation. Sales (credit) Cash Inventory Current liabilities Asset turnover Current ratio Debt-to-assets ratio Receivables turnover $ 2,880,000 188,000 890,000 811,000 1.35 times 2.30 times a. Accounts receivable b. Marketable securities c. Fixed assets d. Long-term debt 40 % 5 times Current assets are composed of cash, marketable securities, accounts receivable, and inventory. Lienser Fraktala TAMARA TANT RISHI TRITATE FAST JET PARETSTRANS I nemal osted or annemangen MANENBER HAGPAINT MANSION LARPURCO Calculate the following balance sheet items. (Do not round intermediate calculations. Round your final answers to the nearest whole number.)

Here is Simple Bank’s balance sheet (with associated interest rates): Assets $800 million Business Loans, 7.5% $200 million Corporate Bonds, 4.25% $25 million Reserves, Fed pays 0.5% $10 million Real Assets Liabilities $550 million Demand Deposits $360 million Time Deposits, 2.5% $25 million Preferred Shares,  3.3% $100 million Common Shares   Q.  Calculate the bank’s Net Interest Margin, nothing that dividends on preferred shares are not included (because they are not