Question
In: Finance
Being Human, Inc., recently issued new securities to finance a new TV show. The project cost...
|
Being Human, Inc., recently issued new securities to finance a new TV show. The project cost $35 million, and the company paid $2.2 million in flotation costs. In addition, the equity issued had a flotation cost of 7 percent of the amount raised, whereas the debt issued had a flotation cost of 3 percent of the amount raised. If the company issued new securities in the same proportion as its target capital structure, what is the company’s target debt-equity ratio? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., .1616.) |
Needs to be rounded to 4 decimal places.
Solutions
Expert Solution
Please refer to below spreadsheet for calculation and answer. Cell reference also provided.
Cell reference -
jeff jeffy answered 1 year agoRelated Solutions
Being Human, Inc., recently issued new securities to finance a new TV show. The project cost...
Being Human, Inc., recently issued new securities to finance a
new TV show. The project cost $35 million, and the company paid
$2.2 million in flotation costs. In addition, the equity issued had
a flotation cost of 7 percent of the amount raised, whereas the
debt issued had a flotation cost of 3 percent of the amount raised.
If the company issued new securities in the same proportion as its
target capital structure, what is the company’s target debt-equity
ratio?
Forwards, Inc., recently issued new securities to finance a new TV show. The project cost $35...
Forwards, Inc., recently issued new securities to finance a new
TV show. The project cost $35 million, and the company paid $2.2
million in flotation costs. In addition, the equity issued had a
flotation cost of 7 percent of the amount raised, whereas the debt
issued had a flotation cost of 3 percent of the amount raised. If
the company issued new securities in the same proportion as its
target capital structure, what is the company’s target debt-equity
ratio?
Pardon Me, Inc., recently issued new securities to finance a new TV show. The project cost...
Pardon Me, Inc., recently issued new securities to finance a new
TV show. The project cost $14.4 million, and the company paid
$765,000 in flotation costs. In addition, the equity issued had a
flotation cost of 7.4 percent of the amount raised, whereas the
debt issued had a flotation cost of 3.4 percent of the amount
raised. If the company issued new securities in the same proportion
as its target capital structure, what is the company’s target
debt?equity ratio? PLEASE...
Goodbye, Inc., recently issued new securities to finance a new TV show. The project cost $14.7...
Goodbye, Inc., recently issued new securities to finance a new
TV show. The project cost $14.7 million, and the company paid
$795,000 in flotation costs. In addition, the equity issued had a
flotation cost of 7.7 percent of the amount raised, whereas the
debt issued had a flotation cost of 3.7 percent of the amount
raised. If the company issued new securities in the same proportion
as its target capital structure, what is the company’s target
debt–equity ratio? (Do not...
Sassafras Oil Inc. issued a note payable to Western Bank to finance a new project it...
Sassafras Oil Inc. issued a note payable to Western Bank to
finance a new project it was developing. The note was for $300,000,
issued at face value, with a 5-year term and interest payable at
6%. Sassafras’s project proved to not be technically feasible and
caused the company to go into financial distress. The note is due
today, October 8th, 2020 and Sassafras does not have the funds to
repay the note or the interest. As a result, Western Bank...
Anatomy & Physiology on TV: Watch a TV show that deals with Human Anatomy & Physiology....
Anatomy & Physiology on TV:
Watch a TV show that deals with Human Anatomy & Physiology.
Type a scientifically literate summary of the show. Approved shows:
Discovery Channel Human Body Series, Dr. G Medical Examiner, ER,
House, CSI, Grey’s Anatomy, Bones, Night Detective, Naked and
Afraid…OR something you think is appropriate. Your summary should
include the following:
What is the name of this show?
Why did you choose to watch and summarize this particular
episode?
Have you seen other episodes...
Sabby Inc. issued a $1 million bond at 10% for 5 years to finance a project....
Sabby Inc. issued a
$1 million bond at 10% for 5 years to finance a project. The bonds
were issued on January 1, 2014. The bond pays interest annually on
January 1. The bonds are priced to yield 8%. The PV tables can be
used to calculate present values. The company used effective
interest method.
Required:
Calculate the proceeds (price) that Sabby would receive for the
bond on January I, 201•t.
Prepare a bond amortization schedule up to and including...
Sabby Inc. issued a $1 million bond at 10% for 5 years to finance a project....
Sabby Inc. issued a
$1 million bond at 10% for 5 years to finance a project. The bonds
were issued on January 1, 2014. The bond pays interest annually on
January 1. The bonds are priced to yield 8%. The PV tables can be
used to calculate present values. The company used effective
interest method.
Required:
Calculate the proceeds (price) that Sabby would receive for the
bond on January I, 201•t.
Prepare a bond amortization schedule up to and including...
Noelle Inc. issued a $1.3 million bond at 9% for 3 years to finance a project....
Noelle Inc. issued a $1.3 million bond at 9% for 3 years to
finance a project. The bonds were issued on January 1, 2018. The
bond pays interest semi annually on July 1 and January 1. The
market rate is 8%. The company used effective interest method. Year
end is September 30. Required: a) Calculate the proceeds (price)
that Noelle Inc. would receive for the bond on January 1, 2018. The
PV tables can be used. Show calculations b) Prepare...
On January 2, Lincoln Motors, Inc. issued 1,000, $1,000 bonds to finance a new showroom. The...
On January 2, Lincoln Motors, Inc. issued 1,000, $1,000 bonds to
finance a new showroom. The bonds are 5-year, 6% bonds that pay
interest on December 31 each year. When issued, investors required
7% interest and the bonds are due December 31, Year 5.
Required:
1. Compute the selling price
of the bonds. 3 PUNTOS
2. Prepare the entry to
record the sale of the bonds. 3 PUNTOS
3. Prepare the amortization
table for the bonds. 5 PUNTOS
4. Prepare the journal
entries for the...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Java Part 2 of 4 - Amusement Park Programming Project MUST BE COMPATIBLE WITH PART 1...
- Show that any number that ends in 9 if squared ends at 1.
- which architechtural pattern is suitable to appliactio in which data is genrated by one computer and...
- The Double.parseDouble() method requires a String argument, but it fails if the String cannot be converted...
- various provisions of IFRS/FASB related to Franchise Accounting
- I am struggling with this assignment for my java class. Objectives: Your program will be graded...
- For a summer camp, just kinda make up stuff describe the organizational structure of the project....
ADVERTISEMENT