Intro Consider the following information for Clinkle Company: Stock information: • Stock price: $54 • Number of shares outstanding: 18 million • Beta: 1.4 Bond information: • Value of debt: $680 million • Pre-tax cost of debt: 6.5% Other information • Tax rate: 21% • Government bond interest rate: 3% • Expected return on the S&P 500: 6% Part 1 What is the cost of equity? 3+ decimals Submit
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- 470 - 15 which of the following factors does not indicate market liquidity? a. number of shareholders b. high price volatility c. number of shares outstanding d. number of shares traded e. institutional interestF1 DR RDT What is the WACC? 18.1% The debt-equity ratio is 60%. The after-tax cost of debt is 15%. The cost of equity is 20%. 17.0% 18.0% 16.9% Type here to search F2 @ F3 X 4 O # F4 KA $ Ĵ F5 100 t % F6 Font Family F7 A F8 - Font G DELI & 00 FOQuestion A Tau Inc. has sales of $392,510, a debt-equity ratio of 1.2, and a profit margin of 8.5 percent. What is the equity multiplier? 2.4 2.2 0.2 1.4 I need this answer soon as possible !! .Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this
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- The ........of the business should show the business net worth covering all of the main financial liabilities, assets and owner equity at a particular point time. A-invoice B-balance sheet C-quotation D-income statementD&R A3 3 - 7 Question 3. FRA Pricing, Valuation, Payoff, and Hedging Today is June 1. Sustainable Corporation has an obligation of $25 million coming due on August 1. The company is planning to borrow this amount on August 1 to fulfill its obligation, and plans to pay back the loan on December 1. The company’s borrowing rate is LIBOR + 125 basis points. The company’s bank presents it with the following LIBOR term structure: # days LIBOR 30 0.90% 60 1.00% 90 1.05% 120 1.10% 150 1.15% 180 1.18% 210 1.20% 240 1.21% For the calculation of interest, the bank assumes 30 days in a month, and 360 days in a year. Ms. Devro, the VP Finance of Sustainable, is worried that LIBOR will increase between June and August, thus increasing the company’s borrowing cost. She advises that the company enters into a forward rate agreement (FRA) with its bank to hedge its interest rate risk. She has asked you, the treasurer of the company, to…The following information about a company is provided: Account Contributed capital, beginning of the year Retained earnings, beginning of the year Sales revenues earned during the year Investment income earned during the year Total expenses paid during the year Dividends paid during the year Total assets, end of the year What is the total liabilities at the end of the year? S thousands 50 225 450 5 402 10 800
- 36. Assume you have placed a value of operations on Champion Inc. of $3,500,000. The firm has marketable securities of $75,000. In addition, the firm recently reported total assets of $7 million along with long-term debt of $1.5 million and preferred stock of $250,000. If Champion has 500,000 shares outstanding, what is the intrinsic value of the firm’s common stock? Only typed answerWhich of the following accounts allows investors to contribute before-tax dollars, and once the assets are in the account allows for tax-deferred growth of assets? A. Bank savings account B. Roth 401(k)/Roth 403(b) C. 401(k)/403(b)1. An opportunity arises for company ABC which requires an initial investment of $800,000 now. The management's discount rate is 12%. The amount of cash inflows expected from the new investment are: Year-1 cash Inflow: $250,000 Year-2 cash Inflow: $400,000 Year-3 cash Inflow: $300,000 Year-4 cash Inflow: $200,000 What is discounted payback periods of the new investment? O A) 3,75 O B) 3,50 O C) 3,90 O D) 3,35 O E) 4,00