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

Lydex Company Comparative Balance Sheet This Year Last Year Assets Current assets: Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities Note payable, 10% Total liabilities Stockholders' equity: Common stock, $ 78 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 960,000 0 2,700,000 3,900,000 240,000 7,800,000 9,300,000 $ 17,100,000 $ 3,900,000 3,600,000 7,500,000 7,800,000 1,800,000 9,600,000 $ 17,100,000 $ 1,260,000 300,000 1,800,000 2,400,000 180,000 5,940,000 8,940,000 $ 14,880,000 $ 2,760,000 3,000,000 5,760,000 7,800,000 1,320,000 9,120,000 $ 14,880,000 Sales (all on account) Lydex Company Comparative Income Statement and Reconciliation This Year $ 15,750,000 12,600,000 3,150,000 1,590,000 Last Year $ 12,480,000 9,900,000 2,580,000 Cost of goods sold Gross margin Selling and…

On January 1, 2024, the general ledger of Freedom Fireworks includes the following account balances: Accounts Cash Credit Debit $11,200 Accounts Receivable 34,000 Allowance for Uncollectible Accounts $1,800 Inventory 152,000 Land 67,300 Buildings 120,000 Accumulated Depreciation Accounts Payable 9,600 17,700 Common Stock 200,000 Retained Earnings Totals $ 384,500 155,400 $384,500 During January 2024, the following transactions occur: January 1 Borrow $100,000 from Captive Credit Corporation. The installment note bears interest at 7% annually and matures in 5 years. Payments of $1,980 are required at the end of each month for 60 months. January 4 Receive $31,000 from customers on accounts receivable. January 10 Pay cash on accounts payable, $11,000. January 15 Pay cash for salaries, $28,900. January 30 Firework sales for the month total $195,000. The cost of the units sold is $112,500. January 31 Pay the first monthly installment of $1,980 related to the $100,000 borrowed on January 1.…

Lydex Company Comparative Balance Sheet Assets Current assets: Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities Note payable, 10% Total liabilities Stockholders' equity: $ 1,260,000 This Year Last Year $960,000 0 2,700,000 3,900,000 240,000 7,800,000 9,300,000 $ 17,100,000 300,000 1,800,000 2,400,000 180,000 5,940,000 8,940,000 $ 14,880,000 $ 3,900,000 3,600,000 7,500,000 7,800,000 1,800,000 9,600,000 $ 2,760,000 3,000,000 5,760,000 7,800,000 1,320,000 9,120,000 Common stock, $ 78 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Lydex Company $ 17,100,000 $ 14,880,000 Comparative Income Statement and Reconciliation Sales (all on account) Cost of goods sold Gross margin Selling and administrative expenses Net operating income Interest expense Net income before taxes Income taxes…

Cullumber company has these comparative balance sheet data:

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…

nterpret the results of the debt to equity ratio and how the company has managed debt over the last two years.   Balance Sheet 2018 2019 Cash $63,000 $201,000 Accounts Receivable 199,000 305,000 Marketable Securities 81,000 42,000 Inventories 441,000 455,000 Prepaids 5,000 9,000        Total Current Assets 789,000 1,012,000 Property, Plant, and Equipment, net 858,000 858,000        Total Assets $1,647,000 $1,870,000       Account Payable $150,000 $100,000 Accruals               101,000          95,000         Total Current Liabilities $251,000 $195,000 Bonds Payable 405,000 575,000        Total Liabilities 656,000 770,000       Common Stocks 700,000 700,000 Retained Earnings 291,000 400,000        Total Stockholders’ Equity 991,000 1,100,000      Total Liabilities & Equity $1,647,000 $1,870,000   Income Statement…

return on Assets Sue Company reports the following information in its financial statements. Numbers are in thousands.                   2019                 2018Net Sales $42,075            $44,100Net Income 12,780           15,732Total Assets 63,900            87,400 There were 5,000 outstanding shares at December 31, 2019.Required a. What was Sue's return on assets for 2019 and 2019? (Round to one decimal point)

Selected financial data for Wilmington Corporation is presented below.   WILMINGTON CORPORATION Balance Sheet As of December 31   Year 7 Year 6 Current Assets     Cash and cash equivalents $    634,527 $   335,597 Marketable securities 166,106 187,064 Accounts receivable (net) 284,226 318,010 Inventories 466,942 430,249 Prepaid expenses 60,906 28,060 Other current assets 83,053 85,029 Total Current Assets 1,695,760 1,384,009       Property, plant and equipment 1,384,217 625,421 Long-term investment 568,003 425,000 Total Assets $3,647,980 $2,434,430       Current Liabilities     Short-term borrowings $   306,376 $    170,419 Current portion of long-term debt 155,000 168,000 Accounts payable 279,522 314,883 Accrued liabilities 301,024 183,681 Income taxes payable 107,509 196,802 Total Current Liabilities 1,149,431…

Selected financial data for Wilmington Corporation is presented below.   WILMINGTON CORPORATION Balance Sheet As of December 31   Year 7 Year 6 Current Assets     Cash and cash equivalents $    634,527 $   335,597 Marketable securities 166,106 187,064 Accounts receivable (net) 284,226 318,010 Inventories 466,942 430,249 Prepaid expenses 60,906 28,060 Other current assets 83,053 85,029 Total Current Assets 1,695,760 1,384,009       Property, plant and equipment 1,384,217 625,421 Long-term investment 568,003 425,000 Total Assets $3,647,980 $2,434,430       Current Liabilities     Short-term borrowings $   306,376 $    170,419 Current portion of long-term debt 155,000 168,000 Accounts payable 279,522 314,883 Accrued liabilities 301,024 183,681 Income taxes payable 107,509 196,802 Total Current Liabilities 1,149,431…

Selected financial data for Wilmington Corporation is presented below.   WILMINGTON CORPORATION Balance Sheet As of December 31   Year 7 Year 6 Current Assets     Cash and cash equivalents $    634,527 $   335,597 Marketable securities 166,106 187,064 Accounts receivable (net) 284,226 318,010 Inventories 466,942 430,249 Prepaid expenses 60,906 28,060 Other current assets 83,053 85,029 Total Current Assets 1,695,760 1,384,009       Property, plant and equipment 1,384,217 625,421 Long-term investment 568,003 425,000 Total Assets $3,647,980 $2,434,430       Current Liabilities     Short-term borrowings $   306,376 $    170,419 Current portion of long-term debt 155,000 168,000 Accounts payable 279,522 314,883 Accrued liabilities 301,024 183,681 Income taxes payable 107,509 196,802 Total Current Liabilities 1,149,431…

Presented here are the financial statements of Coronado Company. Coronado Company Comparative Balance Sheets December 31 Assets 2022 2021 Cash 37,500 19,100 Accounts Receivable 33,000 20,000 Inventory 30,700 20,200 Property, Plant, and Equipment 59,700 77,100 Accumulated Depreciation (29,900) (23,100)       Total 131,000 113,300 Liabilities and Stockholders’ Equity Accounts Payable 28,100 17,000 Income Taxes payable 7,200 8,300 Bonds Payable 27,800 33,000 Common Stock 19,000 14,800 Retained Earnings 48,900 40,200        Total 131,000 113,300   Coronado Company     Income Statement     For the Year Ended December 31, 2022     Sales revenue   241,900 Cost of Goods Sold   177,000 Gross Profit   64,900 Selling Expenses 18,150   Administrative Expenses 6,050 24,200 Income from Operations   40,700…

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?

What is Ratio Corporation's Fiscal 2021 Times Interest Earned Ratio?       1.41   2.57   4.5   1.63

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 Nguyen Industries:     Statement of Financial Position as of December 31, 2018               Cash $ 232,500   Accounts payable $ 86,500 Accts. receivable   357,500   Short-term bank note   254,000 Inventories   150,500   Accrued wages & taxes   80,000   Total current assets $ 740,500     Total current liabilities $ 420,500         Long-term debt   566,000 Net fixed assets   774,500   Common equity   528,500 Total assets $ 1,515,000   Total liab. & equity $ 1,515,000               Profit & Loss Statement for 2018   Industry Average Ratios               Net sales $ 1,894,000   Current ratio 1.4× Cost of goods sold   1,382,500   Quick ratio 1.0× Gross profit $ 511,500   Days sales outstanding 63 days Operating expenses   373,000   Inventory turnover 9.5×   EBIT $ 138,500   Total asset turnover 1.5× Interest expense   64,000   Net…

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?

...///// 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…

Question 4 Financial information for Mango Corporation is shown below: Mango Corporation Income Statements for the years ended (millions of dollars) 2019 ($m) 2,400 2,040 360 2018 ($m) 2,000 1,700 300 Sales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization ЕBIT 60 50 300 250 Interest expense 43.4 40.4 209.6 EBT 256.6 Таx (30%) Net income Common dividends 77 179.6 146.6 62.9 146.7 92.7

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Presented here are the financial statements of Sheffield Company. Sheffield Company Comparative Balance Sheets December 31 Assets 2022 2021 Cash $37,400 $19,100 Accounts receivable 32,000 19,700 Inventory 29,600 20,100 Property, plant, and equipment 59,600 78,000 Accumulated depreciation (29,600 ) (23,500 ) Total $129,000 $113,400 Liabilities and Stockholders' Equity