An analyst is trying to determine the capital structure for Big Dawg Incorporated. After some careful research, the analyst knows the following:

--Big Dawg has 1.94 million shares of common stock trading today at $19.13 per share. The book value of Big Dawg common stock is $15.00 million. The cost of equity for the firm is estimated to be 16.00%.

--Big Dawg has $9.00 million in long-term debt on its balance sheet. The debt is trading at 92.00% of face value in the market with a yield to maturity of 9.00%. The tax rate facing the firm is 36.00%.

What is the WACC for Big Dawg Incorporated?

Submit

Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))

Federal Inc. currently finances with 25% debt (i.e., wd = 25%), but its new CFO is considering changing the capital structure so wd = 50% by issuing additional bonds and using the proceeds to repurchase and retire common shares so the percentage of common equity in the capital structure (wc) = 1 – wd. Given the data shown below, by how much would this recapitalization change the firm's cost of equity? (Hint: You must unlever the current beta and then use the unlevered beta to solve the problem.)

Risk-free rate, / rRF 5.00% / Tax rate, T 40%

Market risk premium, / RPM 6.00% / Current wd 25%

Current beta, / bL1 1.20 / Target wd 50%

Answer choices: a) 2.20% b) 2.30% c) 2.40 d) 2.50 e) 2.60

Wallace, Inc., produces a product tha goes through three departments: Machining, Assembly, and Polishing. Materials are added at the beginning of the machining operation; labor and overhead are added uniformly throughout the process. The Machining department had work in process at the beginning and end of 1998 as follows:

The company completed 42,500 units during the year and incurred the folowing manufacturing costs:

The inventory at the beginning of the year was carried at the following costs:

REQUIRED:

Prepare a Cost of Production report using the Weighted Average Method

1. Jackpot company sells a single product, has provided its contribution format income statement for June.

Required:

1. Prepare Contribution Income Statement assuming that the business expects an increase in its total sales (as revenue) by 10% and decrease in variable cost per unit by $3. (2.5 marks)

2. Refer to the original data, how much is the total sales which the business needs to generate to earn a target profit of $60,000, verify your answer by preparing contribution income statement. (1.5 marks)

3. Refer to the original data and part b, calculate the percentage of increase in total profit. (1 mark)

XYZ company has 10,000 shares of stock currently trading at $10 per share. They have a beta of 1, expected market return of 10% and a 3% risk free rate. XYZ also has 50 shares of debt outstanding currently trading at $1000 per share. Their bonds have semiannual bonds with a $1,000 par value, 5% coupon rate, and 10 years to maturity. The firm's marginal tax rate is 22 percent. Calculate the weighted average cost of capital (WACC). ENTER YOUR ANSWER AS A PERCENTAGE WITH ONE DECIMAL PLACE (e.g., 12.1) AND NOT AS A DECIMAL (e.g., 0.121). ROUND TO THE NEAREST TENTH OF A PERCENT. DO NOT USE THE PERCENT SIGN (%) IN YOUR ANSWER.

*work out step by step or by hand not on excel or any other program!*

suppose your company imports computer motherboards from singapore. the exchange rate is currently 1.2836S$/US$. you have just placed an order for 24,000 motherboards at a cost to you of 236 singapore dollars each. you will pay for the shipment when it arrives in 90 days. you can sell the motherboards for $195 each. what is your profit at the current exchange rate? what is your profit if the exchange rate goes up by 10 percent over the next 90 days? what is your profit if the exchange rate goes down by 10 percent over the next 90 days? what is the break even exchange rate? what percentage rise or fall does this represent in terms of singapore dollar versus the us dollar?

Edelman Engineering is considering including two pieces of equipment, a truck and an overhead pulley system, in this year's capital budget. The projects are independent. The cash outlay for the truck is $17,100, and that for the pulley system is $22,430. The firm's cost of capital is 14%. After-tax cash flows, including depreciation, are as follows: Year Truck Pulley 1 $5,100 $7,500 2 5,100 7,500 3 5,100 7,500 4 5,100 7,500 5 5,100 7,500 Calculate the IRR, the NPV, and the MIRR for each project, and indicate the correct accept/reject decision for each. Do not round intermediate calculations. Round the monetary values to the nearest dollar and percentage values to two decimal places. Use a minus sign to enter negative values, if any. Truck Pulley Value Decision Value Decision IRR % % NPV $ $ MIRR % %