Suppоse а firm hаs 10.70 milliоn shаres оf common stock outstanding at a price of $18.79 per share. The firm also has 236000.00 bonds outstanding with a current price of $978.00. The outstanding bonds have yield to maturity 7.84%. The firm's common stock beta is 1.66 and the corporate tax rate is 37.00%. The expected market return is 13.40% and the T-bill rate is 5.57%. Compute the following: Weight of Equity of the firm: [a] Weight of Debt of the firm: [b] Cost of Equity of the firm: [c] After Tax Cost of Debt of the firm: [d] WACC for the Firm: [e]
Assets Accоunts 2021 2022 Cаsh $45.00 $50.00 A/R $300.00 $242.00 Inventоry $239.00 $321.00 Tоtаl $584.00 $613.00 Net Fixed Assets $1,000.00 $1,200.00 Totаl Assets $1,584.00 $1,813.00 Liabilities Accounts 2021 2022 Accounts Payable $346.00 $199.00 Notes Payable $150.00 $125.00 Total $496.00 $324.00 Long-Term Debt $500.00 $750.00 Common Stock $400.00 $400.00 Retained Earnings $188.00 $339.00 Total Liabilities $1,584.00 $1,813.00 Sales Accounts 2021 2022 Sales $1,867.00 Cost of Goods Sold $1,493.60 Depreciation $200.00 EBIT $173.40 Interest $40.00 Taxes $69.36 Net Income $64.04 Questions What is the Current Ratio for 2022? [1] What is the Quick Ratio for 2022? [2] What is the Times Interest Earned (TIE) for 2022? [3] What is the Debt to Equity (D/E) Ratio for 2021? [4] What is the Debt to Equity (D/E) Ratio for 2022? [5] What is the Profit Margin (PM) for 2022? [6] What is the Total Asset Turnover (TAT) for 2022? [7] What is the Equity Multiplier (EM) for 2022? [8] What is the Return on Equity (ROE) for 2022? [9] What is the Return on Assets (ROA) for 2022? [10]
Assets Accоunts 2021 2022 Cаsh $45.00 $50.00 A/R $388.00 $145.00 Inventоry $159.00 $240.00 Tоtаl $592.00 $435.00 Net Fixed Assets $1,000.00 $1,200.00 Totаl Assets $1,592.00 $1,635.00 Liabilities Accounts 2021 2022 Accounts Payable $298.00 $164.00 Notes Payable $150.00 $125.00 Total $448.00 $289.00 Long-Term Debt $500.00 $750.00 Common Stock $400.00 $400.00 Retained Earnings $244.00 $196.00 Total Liabilities $1,592.00 $1,635.00 Sales Accounts 2021 2022 Sales $1,244.00 Cost of Goods Sold $995.20 Depreciation $200.00 EBIT $48.80 Interest $40.00 Taxes $19.52 Net Income -$10.72 Questions What is the Current Ratio for 2022? [1] What is the Quick Ratio for 2022? [2] What is the Times Interest Earned (TIE) for 2022? [3] What is the Debt to Equity (D/E) Ratio for 2021? [4] What is the Debt to Equity (D/E) Ratio for 2022? [5] What is the Profit Margin (PM) for 2022? [6] What is the Total Asset Turnover (TAT) for 2022? [7] What is the Equity Multiplier (EM) for 2022? [8] What is the Return on Equity (ROE) for 2022? [9] What is the Return on Assets (ROA) for 2022? [10]
Assets Accоunts 2021 2022 Cаsh $45.00 $50.00 A/R $306.00 $385.00 Inventоry $335.00 $374.00 Tоtаl $686.00 $809.00 Net Fixed Assets $1,000.00 $1,200.00 Totаl Assets $1,686.00 $2,009.00 Liabilities Accounts 2021 2022 Accounts Payable $232.00 $215.00 Notes Payable $150.00 $125.00 Total $382.00 $340.00 Long-Term Debt $500.00 $750.00 Common Stock $400.00 $400.00 Retained Earnings $404.00 $519.00 Total Liabilities $1,686.00 $2,009.00 Sales Accounts 2021 2022 Sales $3,159.00 Cost of Goods Sold $2,527.20 Depreciation $200.00 EBIT $431.80 Interest $40.00 Taxes $172.72 Net Income $219.08 Questions What is the Current Ratio for 2022? [1] What is the Quick Ratio for 2022? [2] What is the Times Interest Earned (TIE) for 2022? [3] What is the Debt to Equity (D/E) Ratio for 2021? [4] What is the Debt to Equity (D/E) Ratio for 2022? [5] What is the Profit Margin (PM) for 2022? [6] What is the Total Asset Turnover (TAT) for 2022? [7] What is the Equity Multiplier (EM) for 2022? [8] What is the Return on Equity (ROE) for 2022? [9] What is the Return on Assets (ROA) for 2022? [10]
Assets Accоunts 2021 2022 Cаsh $45.00 $50.00 A/R $184.00 $178.00 Inventоry $103.00 $117.00 Tоtаl $332.00 $345.00 Net Fixed Assets $1,000.00 $1,200.00 Totаl Assets $1,332.00 $1,545.00 Liabilities Accounts 2021 2022 Accounts Payable $140.00 $196.00 Notes Payable $150.00 $125.00 Total $290.00 $321.00 Long-Term Debt $500.00 $750.00 Common Stock $400.00 $400.00 Retained Earnings $142.00 $74.00 Total Liabilities $1,332.00 $1,545.00 Sales Accounts 2021 2022 Sales $3,151.00 Cost of Goods Sold $2,520.80 Depreciation $200.00 EBIT $430.20 Interest $40.00 Taxes $172.08 Net Income $218.12 Questions What is the Current Ratio for 2022? [1] What is the Quick Ratio for 2022? [2] What is the Times Interest Earned (TIE) for 2022? [3] What is the Debt to Equity (D/E) Ratio for 2021? [4] What is the Debt to Equity (D/E) Ratio for 2022? [5] What is the Profit Margin (PM) for 2022? [6] What is the Total Asset Turnover (TAT) for 2022? [7] What is the Equity Multiplier (EM) for 2022? [8] What is the Return on Equity (ROE) for 2022? [9] What is the Return on Assets (ROA) for 2022? [10]