Liabilities and Owners' Capital Current Liabilities Accounts payable Notes payable Other current liabilities Total current liabilities Long-term debt (7.5% interest paid semianually. due in 2012) Total liabilities Owners' Capital Common stock ($1 par value per share) Paid-in-capital Accumulated earnings Total owners' capital Total liabilities and owners' capital US Treasury Bond Yield Estimated Market or Equity Risk Premium Current Share Price Market value of owners' equity Current yield on the firm's long-term debt Current yield on the firm's short-term notes Dollar value of short term notes outstanding Corporate tax rate a. What are Harriston's capital structure weights? Enterprise value = Market capitalization + Debt- Notes payable / Enterprise Value Long-Term Debt/ Enterprise Value Equity / Enterprise Value $ $ $ $ $ PROBLEM 4-12 Given December 31, 2014 Balance Sheet (Book Values) 17,550,000 20,000,000 22,266,000 59.816,000 $ Invested Capital (Market Values) 5.42% 5.00% 78.00 650,000,000 $ 624,385,826 709,816,000 $ 644,385,8261 8.50% 9.00% 20.000.000 35% 20,000,000 20,000,000 200,025,000 255,000,000 475.025,000 $ 1,560,000,000 1,184 841,000 $2,204.385,826 Solution 20,000,000
Liabilities and Owners' Capital Current Liabilities Accounts payable Notes payable Other current liabilities Total current liabilities Long-term debt (7.5% interest paid semianually. due in 2012) Total liabilities Owners' Capital Common stock ($1 par value per share) Paid-in-capital Accumulated earnings Total owners' capital Total liabilities and owners' capital US Treasury Bond Yield Estimated Market or Equity Risk Premium Current Share Price Market value of owners' equity Current yield on the firm's long-term debt Current yield on the firm's short-term notes Dollar value of short term notes outstanding Corporate tax rate a. What are Harriston's capital structure weights? Enterprise value = Market capitalization + Debt- Notes payable / Enterprise Value Long-Term Debt/ Enterprise Value Equity / Enterprise Value $ $ $ $ $ PROBLEM 4-12 Given December 31, 2014 Balance Sheet (Book Values) 17,550,000 20,000,000 22,266,000 59.816,000 $ Invested Capital (Market Values) 5.42% 5.00% 78.00 650,000,000 $ 624,385,826 709,816,000 $ 644,385,8261 8.50% 9.00% 20.000.000 35% 20,000,000 20,000,000 200,025,000 255,000,000 475.025,000 $ 1,560,000,000 1,184 841,000 $2,204.385,826 Solution 20,000,000
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 51CE: Debt Management and Short-Term Liquidity Ratios The following items appear on the balance sheet of...
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