Suppоse а firm hаs 12.00 milliоn shаres оf common stock outstanding at a price of $25.86 per share. The firm also has 359000.00 bonds outstanding with a current price of $940.00. The outstanding bonds have yield to maturity 7.28%. The firm's common stock beta is 2.32 and the corporate tax rate is 35.00%. The expected market return is 9.36% and the T-bill rate is 5.32%. 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 $281.00 $161.00 Inventоry $283.00 $269.00 Tоtаl $609.00 $480.00 Net Fixed Assets $1,000.00 $1,200.00 Totаl Assets $1,609.00 $1,680.00 Liabilities Accounts 2021 2022 Accounts Payable $143.00 $355.00 Notes Payable $150.00 $125.00 Total $293.00 $480.00 Long-Term Debt $500.00 $750.00 Common Stock $400.00 $400.00 Retained Earnings $416.00 $50.00 Total Liabilities $1,609.00 $1,680.00 Sales Accounts 2021 2022 Sales $1,754.00 Cost of Goods Sold $1,403.20 Depreciation $200.00 EBIT $150.80 Interest $40.00 Taxes $60.32 Net Income $50.48 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 $134.00 $399.00 Inventоry $199.00 $196.00 Tоtаl $378.00 $645.00 Net Fixed Assets $1,000.00 $1,200.00 Totаl Assets $1,378.00 $1,845.00 Liabilities Accounts 2021 2022 Accounts Payable $248.00 $252.00 Notes Payable $150.00 $125.00 Total $398.00 $377.00 Long-Term Debt $500.00 $750.00 Common Stock $400.00 $400.00 Retained Earnings $80.00 $318.00 Total Liabilities $1,378.00 $1,845.00 Sales Accounts 2021 2022 Sales $2,315.00 Cost of Goods Sold $1,852.00 Depreciation $200.00 EBIT $263.00 Interest $40.00 Taxes $105.20 Net Income $117.80 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 $144.00 $195.00 Inventоry $375.00 $201.00 Tоtаl $564.00 $446.00 Net Fixed Assets $1,000.00 $1,200.00 Totаl Assets $1,564.00 $1,646.00 Liabilities Accounts 2021 2022 Accounts Payable $251.00 $171.00 Notes Payable $150.00 $125.00 Total $401.00 $296.00 Long-Term Debt $500.00 $750.00 Common Stock $400.00 $400.00 Retained Earnings $263.00 $200.00 Total Liabilities $1,564.00 $1,646.00 Sales Accounts 2021 2022 Sales $3,185.00 Cost of Goods Sold $2,548.00 Depreciation $200.00 EBIT $437.00 Interest $40.00 Taxes $174.80 Net Income $222.20 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 $108.00 $379.00 Inventоry $208.00 $236.00 Tоtаl $361.00 $665.00 Net Fixed Assets $1,000.00 $1,200.00 Totаl Assets $1,361.00 $1,865.00 Liabilities Accounts 2021 2022 Accounts Payable $341.00 $224.00 Notes Payable $150.00 $125.00 Total $491.00 $349.00 Long-Term Debt $500.00 $750.00 Common Stock $400.00 $400.00 Retained Earnings -$30.00 $366.00 Total Liabilities $1,361.00 $1,865.00 Sales Accounts 2021 2022 Sales $2,801.00 Cost of Goods Sold $2,240.80 Depreciation $200.00 EBIT $360.20 Interest $40.00 Taxes $144.08 Net Income $176.12 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]