At 2018 ABI Construction has a face debt value of 27.24M trading at 89% with a pre-tax weighted cost of 4.27%. ABI common equity for the year was valued at 110.8M and preferred equity for 12.2 M the preferred equity rate was calculated to be 8.46%. However, the common equity was to be calculated using CAPM approach, with a 3% risk free rate and a 7% market risk premium rate, assuming a 1.64 beta. If the tax rate is 41% what is the firms WACC?
In: Finance
At 2018 ABI Construction has a face debt value of 22.48M trading at 96% with a pre-tax weigthed cost of 4.04%. ABI common equity for the year was valued at 115.84M and preferred equity for 13.63M. The Preferred equity rate was calculated to be 7%. However, the common equity was to be calculated using CAPM approach, with a 3% risk free rate and a 7% market risk premium rate, assuming a 1.65 Beta. If the tax rate is 42%, What is this firm’s WACC?
In: Finance
On January 1, 2021, Dreamworld Co. began construction of a new
warehouse. The building was finished and ready for use on September
30, 2022. Expenditures on the project were as follows:
| January 1, 2021 | $ | 326,000 | |
| September 1, 2021 | $ | 477,000 | |
| December 31, 2021 | $ | 477,000 | |
| March 31, 2022 | $ | 477,000 | |
| September 30, 2022 | $ | 326,000 | |
Dreamworld had $5,900,000 in 12% bonds outstanding through both
years.
What was the final cost of Dreamworld's warehouse?
In: Accounting
On January 1, 2018,
Dreamworld Co. began construction of a new warehouse. The building
was finished and ready for use on September 30, 2019. Expenditures
on the project were as follows:
| January 1, 2018 | $ | 336,000 | |
| September 1, 2018 | $ | 504,000 | |
| December 31, 2018 | $ | 504,000 | |
| March 31, 2019 | $ | 504,000 | |
| September 30, 2019 | $ | 336,000 | |
Dreamworld had $6,800,000 in 10% bonds outstanding through both
years.
What was the final cost of Dreamworld's warehouse?
In: Accounting
At 2018 ABI Construction has a face debt value of 26.82M trading at 86% with a pre-tax weigthed cost of 6.18%. ABI common equity for the year was valued at 95.28M and preferred equity for 11.49M. The Preferred equity rate was calculated to be 8.48%. However, the common equity was to be calculated using CAPM approach, with a 3% risk free rate and a 7% market risk premium rate, assuming a 1.39 Beta. If the tax rate is 41%, What is this firm’s WACC?
In: Finance
At 2018 ABI Construction has a face debt value of 27.02M trading at 87% with a pre-tax weigthed cost of 5.36%. ABI common equity for the year was valued at 115.1M and preferred equity for 11.94M. The Preferred equity rate was calculated to be 8.92%. However, the common equity was to be calculated using CAPM approach, with a 3% risk free rate and a 7% market risk premium rate, assuming a 1.37 Beta. If the tax rate is 38%, What is this firm’s WACC?
In: Finance
A girl is sitting near the open window of a train that is moving at a velocity of 22.00 m/s to the east. The girl's uncle stands near the tracks and watches the train move away. The locomotive whistle emits sound at frequency 770.0 Hz. The air is still. (Use 343 m/s for the speed of sound in air for all parts of this question.) (a) What frequency does the uncle hear? Hz (b) What frequency does the girl hear? Hz (c) A wind begins to blow from the east at 22.00 m/s. What frequency does the uncle now hear? Hz (d) What frequency does the girl now hear? Hz
In: Physics
| Information on Janicek Power Co., is shown below. Assume the company’s tax rate is 40 percent. |
| Debt: |
9,400 8.4 percent coupon bonds outstanding, $1,000 par value, 21 years to maturity, selling for 100.5 percent of par; the bonds make semiannual payments. |
| Common stock: | 219,000 shares outstanding, selling for $83.90 per share; beta is 1.24. |
| Preferred stock: |
12,900 shares of 5.95 percent preferred stock outstanding, currently selling for $97.10 per share. |
| Market: | 7.2 percent market risk premium and 5 percent risk-free rate. |
| Required: |
|
What is the company's cost of each form of financing? (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).) |
| Cost | |
| Cost of equity | % |
| Aftertax cost of debt | % |
| Cost of preferred stock | % |
|
Calculate the company's WACC. (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) |
| WACC | % |
In: Finance
Horizontal and Vertical Analysis
Selected data from the financial statements of Jones Hardware Company follows.
| 2019 | 2018 | |||
| Accounts receivable | $63,600 | $38,000 | ||
| Merchandise inventory | 12,300 | 16,000 | ||
| Total assets | 450,000 | 380,000 | ||
| Net sales | 380,000 | 270,000 | ||
| Cost of goods sold | 178,000 | 210,000 | ||
Required:
1. Calculate by how much accounts receivable, merchandise inventory, total assets, net sales, and cost of goods sold increased or decreased in dollar terms from 2018 to 2019.
| Accounts receivable | $ | |
| Merchandise inventory | $ | |
| Total assets | $ | |
| Net sales | $ | |
| Cost of goods sold | $ |
2. Indicate what happened from 2018 to 2019 to accounts receivable and merchandise inventory as a percentage of total assets. Round to the nearest whole percent.
| Accounts receivable | from % in 2018 to % in 2019. |
| Merchandise inventory | from % in 2018 to % in 2019. |
Indicate what happened from 2018 to 2019 to cost of goods sold as a percentage of net sales (rounded to the nearest whole percent).
Cost of goods sold from % in 2018 to % in 2019.
In: Finance
Finch Construction Company expects to build three new homes
during a specific accounting period. The estimated direct materials
and labor costs are as follows.
| Expected Costs | Home 1 | Home 2 | Home 3 | ||||||
| Direct labor | $ | 72,000 | $ | 93,000 | $ | 190,000 | |||
| Direct materials | 106,000 | 150,000 | 186,000 | ||||||
Assume Finch needs to allocate two major overhead costs ($53,250 of
employee fringe benefits and $22,100 of indirect materials costs)
among the three jobs.
Required
Choose an appropriate cost driver for each of the overhead costs
and determine the total cost of each house. (Round
"Allocation rate" to 2 decimal places.)
In: Accounting