Suppоse а firm hаs 48.90 milliоn shаres оf common stock outstanding at a price of $28.60 per share. The firm also has 374000.00 bonds outstanding with a current price of $966.00. The outstanding bonds have yield to maturity 9.88%. The firm's common stock beta is 1.98 and the corporate tax rate is 40.00%. The expected market return is 12.19% and the T-bill rate is 5.83%. 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 $340.00 $286.00 Inventоry $140.00 $165.00 Tоtаl $525.00 $501.00 Net Fixed Assets $1,000.00 $1,200.00 Totаl Assets $1,525.00 $1,701.00 Liabilities Accounts 2021 2022 Accounts Payable $350.00 $193.00 Notes Payable $150.00 $125.00 Total $500.00 $318.00 Long-Term Debt $500.00 $750.00 Common Stock $400.00 $400.00 Retained Earnings $125.00 $233.00 Total Liabilities $1,525.00 $1,701.00 Sales Accounts 2021 2022 Sales $1,868.00 Cost of Goods Sold $1,494.40 Depreciation $200.00 EBIT $173.60 Interest $40.00 Taxes $69.44 Net Income $64.16 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 $295.00 $399.00 Inventоry $190.00 $244.00 Tоtаl $530.00 $693.00 Net Fixed Assets $1,000.00 $1,200.00 Totаl Assets $1,530.00 $1,893.00 Liabilities Accounts 2021 2022 Accounts Payable $323.00 $142.00 Notes Payable $150.00 $125.00 Total $473.00 $267.00 Long-Term Debt $500.00 $750.00 Common Stock $400.00 $400.00 Retained Earnings $157.00 $476.00 Total Liabilities $1,530.00 $1,893.00 Sales Accounts 2021 2022 Sales $1,955.00 Cost of Goods Sold $1,564.00 Depreciation $200.00 EBIT $191.00 Interest $40.00 Taxes $76.40 Net Income $74.60 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 $296.00 $195.00 Inventоry $315.00 $208.00 Tоtаl $656.00 $453.00 Net Fixed Assets $1,000.00 $1,200.00 Totаl Assets $1,656.00 $1,653.00 Liabilities Accounts 2021 2022 Accounts Payable $191.00 $229.00 Notes Payable $150.00 $125.00 Total $341.00 $354.00 Long-Term Debt $500.00 $750.00 Common Stock $400.00 $400.00 Retained Earnings $415.00 $149.00 Total Liabilities $1,656.00 $1,653.00 Sales Accounts 2021 2022 Sales $2,546.00 Cost of Goods Sold $2,036.80 Depreciation $200.00 EBIT $309.20 Interest $40.00 Taxes $123.68 Net Income $145.52 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]