F. Pierce Products Inc. is considering changing its capital structure. F. Pierce currently has no debt and no preferred stock, but it would like to add some debt to take advantage of low interest rates and the tax shield. Its investment banker has indicated that the pre-tax cost of debt under various possible capital structures would be as follows:
| Market Debt- to-Value Ratio (wd) |
Market Equity-to-Value Ratio (ws) |
Market Debt- to-Equity Ratio (D/S) |
Before-Tax Cost of Debt (rd) | |
| 0.0 | 1.0 | 0.00 | 7.0% | |
| 0.2 | 0.8 | 0.25 | 8.0 | |
| 0.4 | 0.6 | 0.67 | 10.0 | |
| 0.6 | 0.4 | 1.50 | 12.0 | |
| 0.8 | 0.2 | 4.00 | 15.0 | |
F. Pierce uses the CAPM to estimate its cost of common equity, rs and at the time of the analaysis the risk-free rate is 5%, the market risk premium is 8%, and the company's tax rate is 40%. F. Pierce estimates that its beta now (which is "unlevered" because it currently has no debt) is 1.15. Based on this information, what is the firm's optimal capital structure, and what would be the weighted average cost of capital at the optimal capital structure? Do not round intermediate calculations. Round your answers to two decimal places.
| DEBT | % |
| EQUITY | % |
| WACC | % |
In: Finance
A person writes a project with unit conversion functions, although she doesn’t use all of them. The conversions would be useful in a library. Create the library and modify the main.c to use the library. What is the name of your library?
|
#include <stdio.h> // has printf() float inches2metres(float length_in_inches); float metres2inches(float length_in_metres); float pounds2kg(float weight_in_pounds); float kg2pounds(float mass_in_kg); float hours2seconds(float time_in_hours); float seconds2hours(float time_in_seconds); int main(void){ int i; float speed_mperhour, speed_inchespersec; printf(“speed (km/hr) speed (in/sec) \n\r”); for (i=1; i<=100;i++) { speed_inchespersec = metres2inches(i*1000.0)/hours2seconds(1.0); printf(“%f %f \n\r”, i, speed_inchespersec); } return 0; float inches2metres(float length_in_inches){ return (length_in_inches * 0.0254); // answer in metres float metres2inches(float length_in_metres){ return (length_in_metres * 39.3701); // answer in inches float pounds2kg(float weight_in_pounds){ return (weight_in_pounds * 0.453592); // answer in kilograms float kg2pounds(float mass_in_kg){ return (mass_in_kg * 2.20462) // answer in pounds float hours2seconds(float time_in_hours){ return (time_in_hours * 3600.0) // answer is seconds float seconds2hours(float time_in_seconds){ return (time_in_seconds / 3600.0) // answer is hours |
In: Computer Science
The December 31, 2019, balance sheet for Franklin Corporation is presented here. These are the only accounts on Franklin’s balance sheet. Amounts indicated by question marks (?) can be calculated using the following additional information:
| FRANKLIN CORPORATION Balance Sheet As of December 31, 2019 |
|||
| Assets | |||
| Cash | $ | 40,000 | |
| Accounts receivable (net) | ? | ||
| Inventory | ? | ||
| Property, plant, and equipment (net) | 294,000 | ||
| $ | 441,000 | ||
| Liabilities and Stockholders’ Equity | |||
| Accounts payable (trade) | $ | ? | |
| Income taxes payable (current) | 40,000 | ||
| Long-term debt | ? | ||
| Common stock | 300,000 | ||
| Retained earnings | ? | ||
| $ | ? | ||
| Additional Information | |||
| Current ratio (at year end) | 1.5 to 1.0 | ||
| Total liabilities ÷ Total stockholders’ equity | 80 | % | |
| Gross margin percent | 30 | % | |
| Inventory turnover (Cost of goods sold ÷ Ending inventory) | 9.8 | times | |
| Gross margin for 2019 | $ | 315,000 | |
Required
(For all requirements, negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
|
||||||||||||
In: Accounting
The December 31, 2019, balance sheet for Baird Corporation is presented here. These are the only accounts on Baird’s balance sheet. Amounts indicated by question marks (?) can be calculated using the following additional information:
| BAIRD CORPORATION Balance Sheet As of December 31, 2019 |
|||
| Assets | |||
| Cash | $ | 20,000 | |
| Accounts receivable (net) | ? | ||
| Inventory | ? | ||
| Property, plant, and equipment (net) | 295,000 | ||
| $ | 442,000 | ||
| Liabilities and Stockholders’ Equity | |||
| Accounts payable (trade) | $ | ? | |
| Income taxes payable (current) | 20,000 | ||
| Long-term debt | ? | ||
| Common stock | 301,000 | ||
| Retained earnings | ? | ||
| $ | ? | ||
| Additional Information | |||
| Current ratio (at year end) | 1.5 to 1.0 | ||
| Total liabilities ÷ Total stockholders’ equity | 70 | % | |
| Gross margin percentage | 20 | % | |
| Inventory turnover (Cost of goods sold ÷ Ending inventory) | 12.5 | times | |
| Gross margin for 2019 | $ | 318,000 | |
Required
(For all requirements, negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
| a. | accounts payable | |
| b. | retained earnings | |
| c. | inventory |
In: Finance
After a careful evaluation of investment alternatives and opportunities, Masters School Supplies has developed a CAPM-type relationship linking a risk index to the required return (RADR), as shown in the table
LOADING...
.
The firm is considering two mutually exclusive projects, A and B. Following are the data the firm has been able to gather about the projects.
|
Project A |
Project B |
|
|
Initial investment
(CF 0CF0) |
$ 23 comma 000$23,000 |
$ 28 comma 000$28,000 |
|
Project life |
77 years |
77 years |
| Annual
cash inflow
(CF nbspCF ) |
$ 7 comma 200$7,200 |
$ 10 comma 300$10,300 |
|
Risk index |
0.20.2 |
1.41.4 |
All the firm's cash flows for each project have already been adjusted for taxes.
a. Evaluate the projects using risk-adjusted discount
rates.
b. Discuss your findings in part
(a),
and recommend the preferred project.
a. The net present value for project A is
$nothing .
(Round to the nearest cent.)
|
Risk index |
Required return (RADR) |
|
0.0 |
7.5 %7.5% (risk-free rate,Upper R Subscript Upper FRF) |
|
0.2 |
8.68.6 |
|
0.4 |
9.79.7 |
|
0.6 |
10.810.8 |
|
0.8 |
11.911.9 |
|
1.0 |
13.013.0 |
|
1.2 |
14.114.1 |
|
1.4 |
15.215.2 |
|
1.6 |
16.316.3 |
|
1.8 |
17.417.4 |
|
2.0 |
18.518.5 |
In: Finance
Bonding and Molecular Geometry
Pre-Laboratory Question
1. Most elements exist as components of compounds rather than in a free state. Explain why.
2. Use colored pencils to lightly shade each element in the Periodic Table of Electronegativity Values. Color 1 Color 2 Color 3 Color 4 0 – 0.9 1.0 – 1.9 2.0 – 2.9 3.0 – 4.0 Laboratory Questions
1. How does electronegativity influence the bond character between two elements?
2. Describe the conditions that make covalent compounds polar.
3. List the advantages of each type of model and the information that it provides and then list the limitations of that model. Molecular Formula Structural Formula Condensed Structural Formula Skeletal Model Ball-and-Stick Model Space-Filling Model
4. Both the alkene C4H8 and the alkyne C4H6 have rigid bond structures. However, C4H8 can form three isomers, whereas C4H6 can form only two isomers. Why is this so?
5. Are these molecules isomers? Why or why not?
6. Which of the following molecules are geometric isomers, and which are structural isomers? Which molecule is in the trans position and which is in the cis position?
7. The skeletal model of benzene is often drawn like this:
In: Chemistry
|
Weston Industries has a debt–equity ratio of 1.1. Its WACC is 8.2 percent, and its pretax cost of debt is 6.4 percent. The corporate tax rate is 35 percent. |
| a. |
What is the company’s cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Cost of equity capital | % |
| b. |
What is the company’s unlevered cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Unlevered cost of equity capital | % |
| c-1. |
What would the cost of equity be if the debt–equity ratio were 2? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Cost of equity | % |
| c-2. |
What would the cost of equity be if the debt–equity ratio were 1.0? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Cost of equity | % |
| c-3. |
What would the cost of equity be if the debt–equity ratio were zero? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
| Cost of equity | % |
In: Finance
The following data represent petal lengths (in cm) for independent random samples of two species of Iris.
Petal length (in cm) of Iris virginica: x1; n1 = 35
| 5.3 | 5.6 | 6.3 | 6.1 | 5.1 | 5.5 | 5.3 | 5.5 | 6.9 | 5.0 | 4.9 | 6.0 | 4.8 | 6.1 | 5.6 | 5.1 |
| 5.6 | 4.8 | 5.4 | 5.1 | 5.1 | 5.9 | 5.2 | 5.7 | 5.4 | 4.5 | 6.4 | 5.3 | 5.5 | 6.7 | 5.7 | 4.9 |
| 4.8 | 5.9 | 5.1 |
Petal length (in cm) of Iris setosa: x2; n2 = 38
| 1.4 | 1.6 | 1.4 | 1.5 | 1.5 | 1.6 | 1.4 | 1.1 | 1.2 | 1.4 | 1.7 | 1.0 | 1.7 | 1.9 | 1.6 | 1.4 |
| 1.5 | 1.4 | 1.2 | 1.3 | 1.5 | 1.3 | 1.6 | 1.9 | 1.4 | 1.6 | 1.5 | 1.4 | 1.6 | 1.2 | 1.9 | 1.5 |
| 1.6 | 1.4 | 1.3 | 1.7 | 1.5 | 1.6 |
(a) Use a calculator with mean and standard deviation keys to calculate x1, s1, x2, and s2. (Round your answers to two decimal places.)
| x1 = | |
| s1 = | |
| x2 = | |
| s2 = |
(b) Let μ1 be the population mean for
x1 and let μ2 be the
population mean for x2. Find a 99% confidence
interval for μ1 − μ2.
(Round your answers to two decimal places.)
| lower limit | |
| upper limit |
In: Math
1D List Practice
Could you write the code to solve the following problem that uses 1D lists?
You have been tasked with writing a Python program that will assist the CAU Registrar’s Office with determining the following:
Your program will contain at least three (3) functions - main, getInfo, and compute - that complete the following tasks:
Note: To test/run your program, you will need to generate a file named freshmen.txt that contains 450 GPAs (each on its own line) that have been randomly generated, ranging from 1.0 to 4.0
In: Computer Science
Suppose the inflation rate is expected to be 6.3% next year, 4.15% the following year, and 3.65% thereafter. Assume that the real risk-free rate, r*, will remain at 2.3% and that maturity risk premiums on Treasury securities rise from zero on very short-term bonds (those that mature in a few days) to 0.2% for 1-year securities. Furthermore, maturity risk premiums increase 0.2% for each year to maturity, up to a limit of 1.0% on 5-year or longer-term T-bonds.
a.
Calculate the interest rate on 1-year Treasury securities. Round
your answer to two decimal places.
Calculate the interest rate on 2-year Treasury securities. Round
your answer to two decimal places.
Calculate the interest rate on 3-year Treasury securities. Round
your answer to two decimal places.
Calculate the interest rate on 4-year Treasury securities. Round
your answer to two decimal places.
Calculate the interest rate on 5-year Treasury securities. Round
your answer to two decimal places.
Calculate the interest rate on 10-year Treasury securities.
Round your answer to two decimal places.
Calculate the interest rate on 20-year Treasury securities.
Round your answer to two decimal places.
In: Finance