Dinklage Corp. has 6 million shares of common stock outstanding. The current share price is $85, and the book value per share is $8. The company also has two bond issues outstanding. The first bond issue has a face value of $65 million, a coupon rate of 8 percent, and sells for 95 percent of par. The second issue has a face value of $40 million, a coupon rate of 9 percent, and sells for 108 percent of par. The first issue matures in 23 years, the second in 5 years.
Suppose the most recent dividend was $5.70 and the dividend growth rate is 4 percent. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 38 percent. What is the company’s WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
In: Finance
Dinklage Corp. has 8 million shares of common stock outstanding. The current share price is $80, and the book value per share is $8. The company also has two bond issues outstanding. The first bond issue has a face value of $125 million, a coupon rate of 5 percent, and sells for 91 percent of par. The second issue has a face value of $110 million, a coupon rate of 4 percent, and sells for 106 percent of par. The first issue matures in 23 years, the second in 9 years.
Suppose the most recent dividend was $4.80 and the dividend growth rate is 5.1 percent. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 21 percent. What is the company’s WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
In: Finance
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Dinklage Corp. has 9 million shares of common stock outstanding. The current share price is $81, and the book value per share is $7. The company also has two bond issues outstanding. The first bond issue has a face value of $130 million, a coupon rate of 6 percent, and sells for 92 percent of par. The second issue has a face value of $115 million, a coupon rate of 5 percent, and sells for 103 percent of par. The first issue matures in 24 years, the second in 10 years. |
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Suppose the most recent dividend was $4.85 and the dividend growth rate is 5.2 percent. Assume that the overall cost of debt is the weighted average of that implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 22 percent. What is the company’s WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
In: Finance
Disk City, Inc. is a retailer for digital video disks. The projected net income for the current year is $2,660,000 based on a sales volume of 260,000 video disks. Disk City has been selling the disks for $22 each. The variable costs consist of the $8 unit purchase price of the disks and a handling cost of $2 per disk. Disk City’s annual fixed costs are $460,000.
Management is planning for the coming year, when it expects that the unit purchase price of the video disks will increase 20 percent. (Ignore income taxes.)
Required:
I have Figured out the first 2 but am struggling on the last 2.
In: Accounting
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McCullough Pet Supplies, Inc., is a young start-up company. No dividends will be paid on the stock over the next nine years, because the firm needs to plow back its earnings to fuel growth. The company will then pay a dividend of $15 per share 10 years from today and will increase the dividend by 5 percent per year thereafter. |
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If the required return on this stock is 14 percent, what is the current share price? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) |
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Current share price |
$ |
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Stauber Corporation is expected to pay the following dividends over the next four years: $3, $10, $15, and $3.08. Afterwards, the company pledges to maintain a constant 5 percent growth rate in dividends, forever. |
| Required: |
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If the required return on the stock is 11 percent, what is the current share price? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) |
Current Share Price: $
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Young Corp. is growing quickly. Dividends are expected to grow at a rate of 25 percent for the next three years, with the growth rate falling off to a constant 6 percent thereafter. |
| Required: |
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If the required return is 13 percent and the company just paid a $2.50 dividend, what is the current share price? (Hint: Calculate the first four dividends.) (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) |
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In: Finance
There are two bonds on sale the investors can choose from: Bond A: 4-year, 10% coupon rate, $1,000 face value. Bond B: 30-year, 8% coupon rate, $1,000 face value. Investors may have access to different information or interpret the information differently which would cause them to arrive at different conclusions regarding the evaluation of assets. Assume that investor I sees both bonds as risky investments and asks a promised yield of 12% from each. Investor II does not see them as risky investments. Assume further that the market rate (alternative investment rate) for both investors is 10%. a) (10 points) What would be the maximum price each investor would be willing to pay for each bond today? b) (10 points) Assume that 20% of the investors of type I and 80% of them are of type II. The market price of each bond today is obtained by: 20%* max Price of Investor I + 80% * Max Price of Investor II (Note that this is a pretty good proxy for how the market price would be arrived at in real world) Then, which investor would buy which bond, if any? c) (20 points) Assume one year passes and the first coupons are just distributed. Assume that all uncertainty regarding these bonds have been resolved and it is public information now that the bond issuers will be able to pay all coupons and the face values at the required times. What is the annual return of each investor?
In: Finance
JAVAFX LAB 2
1. The Soda class has two fields: a String for the name and a double for the price.
2. The Soda class has two constructors. The first is a parameterized constructor that takes a String and a double to be assigned to the fields of the class. The second is a copy constructor that takes a Soda object and assigns the name and price of that object to the newly constructed Soda object.
3. The Soda class has two getters: one to return the name and one to return the price.
4. The VendingMachine has one field for a Soda. This can initially reference a null object by assigning null to the field.
5. The VendingMachine has one constructor that takes a Soda. Remember to assign a new Soda to the Soda field securely.
6. The addSoda method of the VendingMachine class takes a Soda. Check if the field of the class references a null object (you can use the equals operator to check what the variable references). If the field references a null object, assign the new Soda to the Soda field securely and return true. If the field does not reference a null object, just return false.
7. The removeSoda method of the VendingMachine class takes no arguments. Check if the field of the class does not reference a null object (you can use the equals operator to check what the variable references). If the field does not reference a null object, assign null to the Soda field and return true. If the field references a null object, just return false. 8. In the VendingMachineDemo, change the name and price for the Soda being added to the VendingMachine to any other name and price of your choosing.
In: Computer Science
The first-in, first-out (FIFO) method creates better month-to-month cost comparisons than the weighted-average method ________.
A. because it merges costs from the prior period with the current period
B. because it does not recognize transferred in units from other processes
C. when there are substantial quantities of units in process at the end of the period
D. because it is used by industries that do not experience significant cost changes
In: Accounting
To more efficiently manage its inventory, Treynor Corporation
maintains its internal inventory records using first-in, first-out
(FIFO) under a perpetual inventory system. The following
information relates to its merchandise inventory during the
year:
| Jan. | 1 | Inventory on hand—28,000 units; cost $13.90 each. | ||
| Feb. | 12 | Purchased 78,000 units for $14.20 each. | ||
| Apr. | 30 | Sold 50,000 units for $21.70 each. | ||
| Jul. | 22 | Purchased 58,000 units for $14.50 each. | ||
| Sep. | 9 | Sold 78,000 units for $21.70 each. | ||
| Nov. | 17 | Purchased 48,000 units for $14.90 each. | ||
| Dec. | 31 | Inventory on hand—84,000 units. |
Required:
1. Determine the amount Treynor would calculate internally
for ending inventory and cost of goods sold using first-in,
first-out (FIFO) under a perpetual inventory system.
2. Determine the amount Treynor would report
externally for ending inventory and cost of goods sold using
last-in, first-out (LIFO) under a periodic inventory system.
3. Determine the amount Treynor would report for
its LIFO reserve at the end of the year.
4. Record the year-end adjusting entry for the
LIFO reserve, assuming the balance at the beginning of the year was
$18,000.
Determine the amount Treynor would calculate internally for ending inventory and cost of goods sold using first-in, first-out (FIFO) under a perpetual inventory system. (Round "Cost per Unit" to 2 decimal places.)
| Perpetual FIFO: | Cost of Goods Available for Sale | Cost of Goods Sold - April 30 | Cost of Goods Sold - September 9 | Inventory Balance | |||||||||
| # of units | Cost per unit | Cost of Goods Available for Sale | # of units sold | Cost per unit | Cost of Goods Sold | # of units sold | Cost per unit | Cost of Goods Sold | Total Cost of Goods Sold | # of units in ending inventory | Cost per unit | Ending Inventory | |
| Beg. Inventory | $0.00 | $0.00 | $0 | $0.00 | $0 | ||||||||
| Purchases: | |||||||||||||
| February 12 | 0.00 | 0.00 | 0.00 | 0 | |||||||||
| July 22 | 0.00 | 0 | 0.00 | 0.00 | |||||||||
| November 17 | 0.00 | 0.00 | 0.00 | ||||||||||
| Total | 0 | $0 | 0 | $0 | 0 | $0 | $0 | 0 | $0 | ||||
Determine the amount Treynor would report externally for ending inventory and cost of goods sold using last-in, first-out (LIFO) under a periodic inventory system.
| LIFO | Cost of Goods Available for Sale | Cost of Goods Sold - Periodic LIFO | Ending Inventory - Periodic LIFO | ||||||
| # of units | Cost per unit | Cost of Goods Available for Sale | # of units sold | Cost per unit | Cost of Goods Sold | # of units in ending inventory | Cost per unit | Ending Inventory | |
| Beginning Inventory | $0.00 | $0 | $0.00 | ||||||
| Purchases: | |||||||||
| Feb 12 | $0.00 | $0.00 | |||||||
| Jul 22 | $0.00 | $0.00 | |||||||
| Nov 17 | $0.00 | $0.00 | |||||||
| Total | 0 | $0 | 0 | $0 | 0 | $0 | |||
In: Accounting
If the sum of first 6 terms is 9 times to the sum of first 3 terms of the same G.P., then common ratio of the series will be
In: Math