(Weighted average cost of capital​)

ABBC Inc. operates a very successful chain of yogurt and coffee shops spread across the southwestern part of the United States and needs to raise funds for its planned expansion into the Northwest. The​ firm's balance sheet at the close of 2015 appeared as​ follows:

.At​ present, the​ firm's common stock is selling for a price equal to 3 times its book​ value, and the​ firm's investors require a return of

18 percent. The​ firm's bonds command a yield to maturity of 7 ​percent, and the firm faces a tax rate of 37 percent. At the end of the previous​ year, ABBC's bonds were trading near their par value.

a. What does​ ABBC's capital structure look​ like?

b. What is​ ABBC's weighted average cost of​ capital?

c. If​ ABBC's stock price were to rise such that it sold at 3.5 times its book value and the cost of equity fell to

15 ​percent, what would the​ firm's weighted average cost of capital be​ (assuming the cost of debt and tax rate do not​ change)?

I NEED ANSWERS TO THESE QUESTIONS:

a. What is the proportion of debt financing in​ ABBC's capital​ structure? ______​% ​(Round to two decimal​ places.)

What is the proportion of equity financing in​ ABBC's capital​ structure? ​______% ​(Round to two decimal​ places.)

b. What is​ ABBC's weighted average cost of​ capital? ______​% ​(Round to two decimal​ places.)

c. If​ ABBC's stock price were to rise such that it sold at 3.5 times its book value and the cost of equity fell to 15

​percent, what would the​ firm's weighted average cost of capital be​ (assuming the cost of debt and tax rate do not​ change)?

_____​% ​(Round to two decimal​ places.)

Job Costs Using a Plantwide Overhead Rate Naranjo Company designs industrial prototypes for outside companies. Budgeted overhead for the year was $280,000, and budgeted direct labor hours were 16,000. The average wage rate for direct labor is expected to be $35 per hour. During June, Naranjo Company worked on four jobs. Data relating to these four jobs follow: Job 39 Job 40 Job 41 Job 42 Beginning balance $22,400 $35,100 $17,100 $1,900 Materials requisitioned 19,200 21,800 12,700 12,100 Direct labor cost 10,300 18,900 7,350 3,000 Overhead is assigned as a percentage of direct labor cost. During June, Jobs 39 and 40 were completed; Job 39 was sold at 110 percent of cost. (Naranjo had originally developed Job 40 to order for a customer; however, that customer was near bankruptcy and the chance of Naranjo being paid was growing dimmer. Naranjo decided to hold Job 40 in inventory while the customer worked out its financial difficulties. Job 40 is the only job in Finished Goods Inventory.) Jobs 41 and 42 remain unfinished at the end of the month.

Required:

1. Calculate the overhead rate based on direct labor cost.

% of direct labor cost

2. Set up a simple job-order cost sheet for all jobs in process during June.

Naranjo Company Job-Order Cost Sheets

Job 39 Job 40 Job 41 Job 42

Balance, June 1 $ $    $ $

Direct materials    $    $ $ $

Direct Labor $    $    $ $

Total $    $ $    $

3. What if the expected direct labor rate at the beginning of the year was $28 instead of $35? What would the overhead rate be? If required, round your overhead rate answer to one decimal place.

New budgeted direct labor cost = $

New overhead rate = % of direct labor cost

            The Fukushima Power plant is planning construction of a new plant to generate electricity four years hence and must decide now between a small, medium, or large-sized plant. The exact size needed is uncertain because future demands can only be estimated. Forecasters have estimated future demands and their likelihoods as follows:

In the following, all the future costs and earnings have been adjusted to their present worth:

1. If a large plant is built and demand is high, the plant’s net present value (NPV) is estimated to be $180 million. If the demand is medium, however, the NPV of a large plant will drop to $100 million. If the demand is low the NPV will be loss of $200 million.
2. A medium sized plant will have an NPV of $120 million if demand is high or medium and a loss of $5 million if demand is low. If demand is high, a medium-sized plant can be enlarged at a cost of $40 million to generate an additional $80 million in earnings.
3. The capacity of a small plant would limit its NPV to $60 million regardless of demand. If demand is medium, a small plant can be enlarged a moderate amount at a cost of $20 million. Its NPV would then be $110 million less the cost of $20 million for the expansion. If demand is high, a small plant can be enlarged greatly in size at a cost of $80 million. Its NPV would then be $170 million less the cost of $80 million for the expansion. On the contrary, if demand is high, a small plant can be enlarged a moderate amount to increase its NPV to $140 million less the cost of $40 million for the expansion

Conduct a decision-tree analysis on Excel to determine the size of the power-generating plant the company should build now. What size of the power-generating plant the company should build now? Briefly discuss your answer.

A series RL circuit is built with 190 Ω resistor and a 5.0-cm-long, 1.0-cm-diameter solenoid with 800 turns of wire.

A) What is the peak magnetic flux through the solenoid if the circuit is driven by a 12 V, 5.0 kHz source?

B) What capacitance, in μF, has its potential difference increasing at 1.5×10⁶ V/s when the displacement current in the capacitor is 0.60 A ?

Questions related to C#.

When you build a class in C#.NET, how many sub classes can inherit from the class that you just built?

In Object Oriented Development, there are 3 primary concepts that define Object Oriented Programming. What are these concepts?

Function/Method Overloading is when you build 2 or 3 functions with the same name but different argument lists. T/F?

Computer the Depreciation Schedule by using SLD, SOYD, and DDB methods

the university pursed a lab Mass-Spectrometer that has 5 years depreciable life. The instrument costs school $900 with a Salvage Value of $70 after the end of the service life.

1-Built a Depreciation Schedule for this asset by all three methods

2-Build a graphic of each method

3-Which method will you recommend to the university and why?

Your pay is a combination of basic wage + reward. The Commission is based on the expected return for the company and investors. You are well aware of the pay system because you have built a reputation as an aggressive financial advisor who aims to satisfy everyone at all costs.

QUESTION: Discussion and detailed review to cover the ethical considerations in this pay policy. Developing a modern organizational governance system. What recommendation will you make?

Computer the Depreciation Schedule by using SLD, SOYD, and DDB methods

the university pursed a lab Mass-Spectrometer that has 5 years depreciable life. The instrument costs school $900 with a Salvage Value of $70 after the end of the service life.

1-Built a Depreciation Schedule for this asset by all three methods

2-Build a graphic of each method

3-Which method will you recommend to the university and why?

According to the study of Aggregate Supply Curve and the Phillips Curve, a number of different models justifies the existence of sticky wages and also the ability of aggregate demand curve to affect output.
(a) Explain these models.
(b) What are their similarities and differences ?
(c) Which of these models do you find the most plausible ?

Discuss the main differences between the original expectations-augmented Phillips Curve and the curve built on Rational Expectations.

A palindrome prime is a prime number that reads the same forwards or backwards. An example of a
palindrome prime is 131. Write a method with the following signature for determining if a given
number is a palindrome prime.
public static boolean isPallyPrime(int nVal)

Note: For this assignment you are not allowed to use the built in Java class Array as part of your solution for any of these questions. Your Method signatures must
be the same as given here.