Calculating the WACC-4916c2

CaLCULatING the WaCC Here is the condensed 2021 balance sheet for Skye Computer Company (in thousands of dollars): 2021 Current assets Net fixed assets Total assets Accounts payable and accruals Short-term debt Long-term debt Preferred stock (10,000 shares) Common stock (50,000 shares) Retained earnings Total common equity Total liabilities and equity $2,000 3,000 $5,000 $ 900 100 1,100 250 1,300 1,350 $2,650 $5,000 Skye’s earnings per share last year were $3.20. The common stock sells for $55.00, last year’s dividend (D0 ) was $2.10, and a flotation cost of 10% would be required to sell new common stock. Security analysts are projecting that the common dividend will grow at an annual rate of 9%. Skye’s preferred stock pays a dividend of $3.30 per share, and its preferred stock sells for $30.00 per share. The firm’s before-tax cost of debt is 10%, and its marginal tax rate is 25%. The firm’s currently outstanding 10% annual coupon rate, long-term debt sells at par value. The market…

Davidson Corporation: Balance Sheet as of December 31, 2021 (millions of dollars) Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets EBIT Interest Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term bonds Total liabilities Common stock (100 million shares) Retained earnings Common equity $ 3,730 Total liabilities and equity EBT Taxes (25%) Net income 20 585 840 Davidson Corporation: Income Statement for Year Ending December 31, 2021 (millions of dollars) Sales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization Common dividends paid Earnings per share $ 1,445 2,285 130 220 230 580 1,500 $ 2,080 250 $ 1,400 $1,650 $ 3,730 $ $ 9,500 7,570 $ 1,930 480 $ 1,450 150 $ $ 1,300 325 975 335 9.75

Liberty Corporation reported the following financial statements: The company has 2,500 shares of common stock outstanding and the market price is $20 per share. What is Liberty’s price/earnings ratio? a. 0.08 b. $0.08 c. 12.35 12.35 times

ABCD Corp Balance Sheet and Income Statement for the period as at December 31, 2014   Balance Sheet Assets    RM Cash   72,000 Accounts receivable  439,000 Inventories  894,000 Total current assets1,405,000 Fixed Assets   431,000 Total Assets1,836,000   Liabilities Accounts and Notes payable  432,000 Accruals  170,000 Total Current Liabilities  602,000 Long term debt  404,290 Common stock  575,000 Retained Earnings  254,710 Total Liabilities & Equity1,836,000   Income Statement   Sales 4,290,000 Cost of goods sold 3,580,000 Selling, general, and administrative expenses   370,320 Depreciation   159,000 Earnings before taxes (EBT)   180,680 Taxes (40%)     72,272 Net Income   108,408   Per Share Data EPS RM4.71
Cash dividends per share RM0.95 P/E ratio 5 x Market Price (average) RM23.57 Number of Shares Outstanding 23,000   INDUSTRY FINANCIAL RATIO   1. Quick ratio 1.0x 2. Current ratio 2.7x 3. Inventory turnover 7.0x 4. Days sales outstanding 32 days 5. Fixed asset turnover 13.0x 6.…

Arlington Corporation's financial statements (dollars and shares are in millions) are provided here. Balance Sheets as of December 31   2018   2017 Assets   Cash and equivalents $  15,000   $  12,000 Accounts receivable 35,000   30,000 Inventories 33,720   27,000   Total current assets $ 83,720   $ 69,000 Net plant and equipment 50,000   48,000 Total assets $133,720   $117,000   Liabilities and Equity   Accounts payable $ 10,000   $  8,000 Accruals 7,000   5,000 Notes payable 6,900   5,300   Total current liabilities $  23,900   $  18,300 Long-term bonds 15,000   15,000   Total liabilities $  38,900   $  33,300 Common stock (4,000 shares) 60,000   60,000 Retained earnings 34,820   23,700   Common equity $ 94,820   $ 83,700 Total liabilities and equity $133,720   $117,000 Income Statement for Year Ending December 31, 2018 Sales $239,000 Operating costs excluding depreciation and amortization 190,000 EBITDA $ 49,000 Depreciation…

Arlington Corporation's financial statements (dollars and shares are in millions) are provided here. Balance Sheets as of December 31   2018   2017 Assets   Cash and equivalents $  15,000   $  12,000 Accounts receivable 35,000   30,000 Inventories 33,720   27,000   Total current assets $ 83,720   $ 69,000 Net plant and equipment 50,000   48,000 Total assets $133,720   $117,000   Liabilities and Equity   Accounts payable $ 10,000   $  8,000 Accruals 7,000   5,000 Notes payable 6,900   5,300   Total current liabilities $  23,900   $  18,300 Long-term bonds 15,000   15,000   Total liabilities $  38,900   $  33,300 Common stock (4,000 shares) 60,000   60,000 Retained earnings 34,820   23,700   Common equity $ 94,820   $ 83,700 Total liabilities and equity $133,720   $117,000 Income Statement for Year Ending December 31, 2018 Sales $239,000 Operating costs excluding depreciation and amortization 190,000 EBITDA $ 49,000 Depreciation…

Balance Sheet Jack and Jill Corporation's year-end 2009 balance sheet lists current assets of $257,000, fixed assets of $807,000, current liabilities of $188,000, and long-term debt of $293,000. What is Jack and Jill's total stockholders' equity? Multple Cholce $583.000 $1,064,000 $481,000 There Is not enough Information to calculate total stockholder's equity. Prev 1 of 8 Score answer> 9:43 AM 42°F Mostly sunny ype here to search 11/5/2021 21 DELL

Balance Sheet Jack and Jill Corporation's year-end 2018 balance sheet lists current assets of $246,000, fixed assets of $796,000, current liabilities of $193,000, and long-term debt of $296,000. What is Jack and Jill's total stockholders' equity?

Arlington Corporation's financial statements (dollars and shares are in millions) are provided here. Balance Sheets as of December 31   2021   2020 Assets   Cash and equivalents $  15,000   $  14,000 Accounts receivable 30,000   20,000 Inventories 28,355   16,000   Total current assets $ 73,355   $ 50,000 Net plant and equipment 47,000   45,000 Total assets $120,355   $95,000   Liabilities and Equity   Accounts payable $ 10,900   $  8,500 Accruals 7,100   7,000 Notes payable 6,200   5,500   Total current liabilities $  24,200   $  21,000 Long-term bonds 20,000   20,000   Total liabilities $  44,200   $  41,000 Common stock (4,000 shares) 50,000   50,000 Retained earnings 26,155   4,000   Common equity $ 76,155   $ 54,000 Total liabilities and equity $120,355   $95,000   Income Statement for Year Ending December 31, 2021 Sales $242,000 Operating costs excluding depreciation and amortization 190,000 EBITDA $ 52,000 Depreciation…

Consider the following financial data for Terry Enterprises:     Balance Sheet as of December 31, 2018               Cash $ 86,000   Accounts payable $ 15,500 Accts. receivable   91,500   Notes payable   93,500 Inventories   65,500   Accruals   19,500   Total current assets $ 243,000     Total current liabilities $ 128,500         Long-term debt   162,500 Net plant & equip.   419,500   Common equity   371,500 Total assets $ 662,500   Total liab. & equity $ 662,500               Statement of Earnings for 2018   Industry Average Ratios               Net sales $ 642,500   Current ratio 2.2× Cost of goods sold   482,000   Quick ratio 1.7× Gross profit $ 160,500   Days sales outstanding 44 days Operating expenses   119,500   Inventory turnover 6.7×   EBIT $ 41,000   Total asset turnover 0.6× Interest expense   14,500   Net profit margin 7.2%   Pre-tax earnings $ 26,500…

Evergreen Inc's most recent Statement of Financial Position is given below. Evergreen Inc. Statement of Financial Position As at Dec 31, 2021 Assets Liabilities Cash 425,000 Accounts Payable 300,000 Accounts Receivable $ 400,000 Other Current Liabilities 425,000 Inventories 500,000 Total Current Liabilities 2$ 725,000 Total Current Assets $ 1,325,000 Net Fixed Assets 18,000,000 LT Debt $ 2,500,000 Common Stock (85,000 shares o/s) $ 4,500,000 Retained Earnings 11,600,000 Total Liabilities & Total Assets $ 19,325,000 Owners Equity 19,325,000 Additional Information: Current market price per common share = $ 195 Before tax cost of borrowing (secured loan) = 5% Weighted Average Cost of Capital =12% Net Income for 2021 = $925,000 Target D/E ratio based on market values = 0.25 Corporate tax rate = 35% Suppose instead, Evergreen uses a retention ratio of 30%. Their capital budget for the upcoming year = $1,600,000. Calculate the debt, external equity financing required and the dividends per…

Brian Company provided the following selected account balances on December 31. 2021: Cash P60,000 Trading investments, including P300,000 of Brian Company's shares 400,000 Trade accounts receivable 340,000 Inventories 148,000 Share capital 2,224,000 Retained earnings (224,000) What is the total amount of equity on December 31, 2021?

The current year financial statements for Blue Water Company and Prime Fish Company are presented below. Balance sheet Cash Accounts receivable (net) Inventory Property & equipment (net) Blue Water Prime Fish $ 42,400 45,000 $ 19,600 35,200 Other assets Total assets Current liabilities Long-term debt (interest rate: 10%) Capital stock ($10 par value) Additional paid-in capital Retained earnings Total liabilities and stockholders' equity $ 425,800 Income statement Sales revenue (1/3 on credit) Cost of goods sold Operating expenses Net income Other data Per share stock price at end of current year Average income tax rate $ 426,000 (234,000) (163,800) 92,000 161,000 85,400 $ 425,800 $ 92,000 74,800 157,800 30,400 70,800 48,400 417,800 319,000 $ 840,000 $ 70,000 62,800 526,000 107,400 73,800 $ 840,000 $ 788,000 (401,400) (312,400) $ 28,200 $ 74,200 $ 23.4 30% $ 29 30% Dividends declared and paid in current year $ 34,400 $ 155,000 Both companies are in the fish catching and manufacturing…

Here is the condensed 2021 balance sheet for Skye Computer Company (in thousands of dollars):     2021 Current assets   $ 1,600   Net fixed assets     2,400   Total assets   $ 4,000     Accounts payable and accruals   $ 600   Short-term debt     200   Long-term debt     1,275   Preferred stock (15,000 shares)     325   Common stock (40,000 shares)     775   Retained earnings     825     Total common equity   $ 1,600   Total liabilities and equity   $ 4,000     Skye's earnings per share last year were $2.90. The common stock sells for $45.00, last year's dividend (D0) was $1.90, and a flotation cost of 8% would be required to sell new common stock. Security analysts are projecting that the common dividend will grow at an annual rate of 9%. Skye's preferred stock pays a dividend of $3.00 per share, and its preferred stock sells for $25.00 per share. The firm's before-tax cost of debt is 8%, and its marginal tax rate is 25%. The firm's currently outstanding…

...///// Acme Company Balance Sheet As of January 5, 2023 (amounts in thousands) Cash 8,400 Accounts Payable 2,800 Accounts Receivable 4,700 Debt 3,400 Inventory 4,200 Other Liabilities 900 Property Plant & Equipment 17,200 Total Liabilities 7,100 Other Assets 2,800 Paid-In Capital 6,700 Retained Earnings 23,500 Total Equity 30,200 Total Assets 37,300 Total Liabilities & Equity 37,300   Update the balance sheet above to reflect the transactions below, which occur on January 6, 2023 1. Sell product for $25,000 with historical cost of $20,000 2. Sell product for $30,000 with historical cost of $24,000 3. Sell product for $20,000 with historical cost of $16,000 What is the final amount in Retained Earnings?   help plz thank u sm

The Davidson Corporation's balance sheet and income statement are provided here.   Davidson Corporation: Balance Sheet as of December 31, 2021 (millions of dollars) Assets     Liabilities and Equity   Cash and equivalents $ 20    Accounts payable $ 150 Accounts receivable   610    Accruals   320 Inventories   830    Notes payable   215   Total current assets $ 1,460      Total current liabilities $ 685 Net plant and equipment   2,465    Long-term bonds   1,490            Total liabilities $ 2,175          Common stock (100 million shares)   250          Retained earnings $ 1,500            Common equity $ 1,750 Total assets $ 3,925    Total liabilities and equity $ 3,925     Davidson Corporation: Income Statement for Year Ending December 31, 2021 (millions of dollars) Sales $ 7,250 Operating costs excluding depreciation and amortization   5,430 EBITDA $ 1,820 Depreciation and amortization   410 EBIT $ 1,410 Interest   130 EBT $ 1,280…

Here is the condensed 2021 balance sheet for Skye Computer Company (in thousands of dollars):     2021 Current assets   $ 2,000   Net fixed assets     3,000   Total assets   $ 5,000     Accounts payable and accruals   $ 900   Short-term debt     200   Long-term debt     1,200   Preferred stock (10,000 shares)     300   Common stock (40,000 shares)     1,175   Retained earnings     1,225     Total common equity   $ 2,400   Total liabilities and equity   $ 5,000     Skye's earnings per share last year were $3.75. The common stock sells for $65.00, last year's dividend (D0) was $2.75, and a flotation cost of 9% would be required to sell new common stock. Security analysts are projecting that the common dividend will grow at an annual rate of 8%. Skye's preferred stock pays a dividend of $3.85 per share, and its preferred stock sells for $35.00 per share. The firm's before-tax cost of debt is 11%, and its marginal tax rate is 25%. The firm's currently…

ASAP pls

The financial statements of Hainz Company appear below: HAINZ COMPANYComparative Balance SheetDecember 31 Assets   2020   20169 Cash   $20,000   $40,000 Short-term investments   20,000   60,000 Accounts receivable (net)   40,000   30,000 Inventory   60,000   70,000 Property, plant and equipment (net)   260,000   300,000   Total assets   $400,000   $500,000 Liabilities and stockholders' equity       Accounts payable   $20,000   $30,000 Short-term notes payable   40,000   90,000 Bonds payable   80,000   160,000 Common stock   150,000   150,000 Retained earnings   110,000   70,000   Total liabilities and stockholders' equity   $400,000   $500,000   HAINZ COMPANYIncome StatementFor the Year Ended December 31, 2020 Net sales       $400,000 Cost of goods sold       250,000 Gross profit       150,000 Expenses             Operating expenses   $42,000         Interest expense   18,000             Total expenses       60,000 Income before…

Here is the income statement for Teal Mountain Inc. TEAL MOUNTAIN INC.Income StatementFor the Year Ended December 31, 2020 Sales revenue   $402,900 Cost of goods sold   256,700 Gross profit   146,200 Expenses (including $10,200 interest and $29,600 income taxes)   89,200 Net income   $ 57,000 Additional information: 1.   Common stock outstanding January 1, 2020, was 30,000 shares, and 39,000 shares were outstanding at December 31, 2020. 2.   The market price of Teal Mountain stock was $15 in 2020. 3.   Cash dividends of $24,700 were paid, $6,500 of which were to preferred stockholders. FInd the following: A.) Payout Ratio B.) Times interest earned

Here is the income statement for Teal Mountain Inc. TEAL MOUNTAIN INC.Income StatementFor the Year Ended December 31, 2020 Sales revenue   $402,900 Cost of goods sold   256,700 Gross profit   146,200 Expenses (including $10,200 interest and $29,600 income taxes)   89,200 Net income   $ 57,000 Additional information: 1.   Common stock outstanding January 1, 2020, was 30,000 shares, and 39,000 shares were outstanding at December 31, 2020. 2.   The market price of Teal Mountain stock was $15 in 2020. 3.   Cash dividends of $24,700 were paid, $6,500 of which were to preferred stockholders. Compute the following measures for 2020. (Round all answers to 2 decimal places, e.g. 1.83 or 2.51%) (a)   Earnings per share   $enter a dollar amount    (b)   Price-earnings ratio   enter Price-earnings ratio in times  times (c)   Payout ratio   enter percentages  % (d)   Times interest earned   enter Times interest…

Lozano Chip Company: Balance Sheet as of December 31, 2019(Thousands of Dollars) Cash $   225,000   Accounts payable $   600,000 Receivables 1,575,000   Notes payable 100,000 Inventories 1,160,000   Other current liabilities 550,000   Total current assets $2,960,000     Total current liabilities $1,250,000 Net fixed assets 1,355,000   Long-term debt 400,000       Common equity 2,665,000 Total assets $4,315,000   Total liabilities and equity $4,315,000     Lozano Chip Company: Income Statement for Year Ended December 31, 2019(Thousands of Dollars) Sales $7,500,000 Cost of goods sold 6,375,000 Selling, general, and administrative expenses 921,000   Earnings before interest and taxes (EBIT) $   204,000 Interest expense 40,000   Earnings before taxes (EBT) $   164,000 Federal and state income taxes (25%) 41,000 Net income $   123,000     Calculate the indicated ratios for Lozano. Do not round intermediate calculations. Round your answers to two…

General Accounting

The balance sheet and income statement for Cruise Corporation are as follows:                                                                                                                     Balance Sheet as of December 31, 2020                                                                                                                              ASSETS                                                                         LIABILITIES & EQUITY                         Cash & marketable securities $2,000             Accounts payable                    $30,000            Accounts Receivable               35,000             Taxes payable                         9,000            Inventory                                 15,000             Short-term borrowings           12,000            Total current assets                $52,000           Total current liabilities           $51,000            Net P,P & E                              $448,000         Long-term debt…