Questions
Bonaime, Inc., has 7.9 million shares of common stock outstanding. The current share price is $62.90,...

Bonaime, Inc., has 7.9 million shares of common stock outstanding. The current share price is $62.90, and the book value per share is $5.90. The company also has two bond issues outstanding. The first bond issue has a face value of $71.9 million, a coupon rate of 7.4 percent, and sells for 88.5 percent of par. The second issue has a face value of $36.9 million, a coupon rate of 8.4 percent, and sells for 87.5 percent of par. The first issue matures in 18 years, the second in 10 years. The most recent dividend was $3.80 and the dividend growth rate is 5 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 40 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

Dinklage Corp. has 5 million shares of common stock outstanding. The current share price is $71,...

Dinklage Corp. has 5 million shares of common stock outstanding. The current share price is $71, and the book value per share is $10. The company also has two bond issues outstanding. The first bond issue has a face value of $80 million, a coupon rate of 4 percent, and sells for 96 percent of par. The second issue has a face value of $65 million, a coupon rate of 3 percent, and sells for 108 percent of par. The first issue matures in 20 years, the second in 9 years.

Suppose the most recent dividend was $4.35 and the dividend growth rate is 4.6 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

provide and discuss a specific example of socialization from life experience. (For example, you can discuss...

provide and discuss a specific example of socialization from life experience. (For example, you can discuss your involvement in sports, music, theater, or other group activities, your first paid job, moving to a new city, or an important family/cultural event or holiday, like Thanksgiving).

  1. First, explain the experience in detail and then talk about what skills, values, or knowledge you developed as a result.
  2. Identify the key agents of socialization (such as family, teachers, or coaches) and their various social roles and identities.  What agents were most directly involved in this experience, and why?
  3. Reflect on the ways in which this experience is connected to cultural values and norms.  Which cultural values and norms did you learn about through this experience?
  4. Discuss how this experience contributed to your perspective and position in society or social group.  What did you learn about yourself? What did you learn about society?

In: Psychology

Dinklage Corp. has 6 million shares of common stock outstanding. The current share price is $85,...

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,...

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

Dinklage Corp. has 9 million shares of common stock outstanding. The current share price is $81,...

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.

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

Use the following information to answer questions 5 – 21 . Allen Company applies manufacturing overhead...

Use the following information to answer questions 5 – 21 .
Allen Company applies manufacturing overhead on the basis of direct labor hours. Overhead was estimated to be $500,000 and direct labor hours were estimated to be 20,000.
During the year, Allen Company incurred actual overhead costs of $510,000, actual direct labor hours of 21,000, and actual direct labor costs of $615,000.
Allen Company had the following inventory balances at the beginning and end of the year:
January 1 December 31
Finished goods $315,000   $325,000
Work in process   450,000     470,000
Raw material   320,000     325,000
During the year, the company purchased $230,000 of raw materials.
1.  What is the predetermined manufacturing overhead rate?
2. What amount is applied to manufacturing overhead?
3.  At the end of year, was manufacturing overhead over- or under-applied?
4. Regarding Question 7, what is the amount?
5.  Total cost of goods manufactured is:
6. Cost of goods sold is:
7.  The journal entry to transfer costs to work in process includes a debit to which account?
a. Manufacturing overhead
b. Work in process
c. Finished goods
d. Cost of goods sold
e. None of the above
8. Refer to the previous question. The amount of the entry is:

9. The journal entry to transfer costs from work in process to finished goods includes a debit to which account?
a. Manufacturing overhead
b. Work in process
c. Finished goods
d. Cost of goods sold
e. None of the above
10. The journal entry to transfer costs from work in process to finished goods includes a credit to which account?
a. Manufacturing overhead
b. Work in process
c. Finished goods
d. Cost of goods sold
e. None of the above
11. Refer to the previous two questions. The amount of the entry is:
12. The journal entry to transfer costs from finished goods to cost of goods sold includes a debit to which account?
a. Manufacturing overhead
b. Work in process
c. Finished goods
d. Cost of goods sold
e. None of the above
13. The journal entry to transfer costs from work in process to finished goods includes a debit to which account?
a. Manufacturing overhead
b. Work in process
c. Finished goods
d. Cost of goods sold
e. None of the above
14. The journal entry to transfer costs from work in process to finished goods includes a credit to which account?
a. Manufacturing overhead
b. Work in process
c. Finished goods
d. Cost of goods sold
e. None of the above
15. Refer to the previous two questions. The amount of the entry is:
16. The journal entry to transfer costs from finished goods to cost of goods sold includes a debit to which account?
a. Manufacturing overhead
b. Work in process
c. Finished goods
d. Cost of goods sold
e. None of the above
17. The journal entry to transfer costs from finished goods to cost of goods sold includes a credit to which account?
a. Manufacturing overhead
b. Work in process
c. Finished goods
d. Cost of goods sold
e. None of the above
18. Refer to the previous two questions. The amount of the entry is:
19. The journal entry to dispose of over- or under- applied manufacturing overhead includes a debit to which account?
a. Manufacturing overhead
b. Work in process
c. Finished goods
d. Cost of goods sold
e. None of the above

In: Accounting

Obtain formulae (MXn or MnX) for structures derived from hole-filling in close-packed arrays with (a) half...

Obtain formulae (MXn or MnX) for structures derived from hole-filling in close-packed arrays with (a) half the octahedral holes filled, (b) one-quarter of the tetrahedral holes filled, (c) two-thirds of the octahedral holes filled. What are the average coordination numbers of M and X in (a) and (b)?

In: Chemistry

The following is from an article from the Wall Street Journal: “Krispy Kreme Doughnuts Inc. reported...

The following is from an article from the Wall Street Journal: “Krispy Kreme Doughnuts Inc. reported its profit fell 56% in its second quarter despite an 11% increase in revenue.” Briefly explain how it is possible for a firm’s revenue to increase at the same time its profits decrease

In: Economics

1.Describe the capital structure decision making process in the context of agency costs, and contrast this...

1.Describe the capital structure decision making process in the context of agency costs, and contrast this with the M&M theory.

2.A bond has a covenant that prohibits the company from changing its line of business. What is the rationale for this type of covenant, in the context of the issues we have discussed this quarter?

In: Finance