FIN550- Cost of Capital discussion

You are now completing a Comparable Company Analysis (“CCA” or “Public Comps”) for this same company, and you’re trying to decide on the proper screening criteria. You run several screening reports on Capital IQ and count the number of companies produced by each criteria set (described below).The U.S.-based company you’re valuing has an LTM Revenue of approximately $10 billion with an EBITDA of $1.5 billion.Which of the following is the BEST screen for this company’s Public Comps?a. U.S. and Canadian steel manufacturing companies with LTM Revenue above $5billion USD; 15 companies in the set.b. U.S., Canadian, and European steel manufacturing companies with LTM EBITDA above $1 billion USD; 12 companies in the set.c. U.S. steel manufacturing companies with LTM Revenue above $5 billion and a Current Enterprise Value of less than $10 billion; 6 companies in the set.d. U.S. steel manufacturing companies with LTM Revenue above $5 billion; 8companies in the set.e. It’s impossible to answer…

Please help me with this question cuz most of the responses are wrong. Thanks

Ma3. Assume that Nike decides to build a new warehouse complex at significant cost, financed with additional project-specific long-term debt. Describe how this project and financing will impact Nike’s financial statements. In your response, focus on the impact on the ratios gross margin, profit margin, ROA, current ratio, and debt-to-equity   Second, assume that management is wondering whether to capitalize the interest associated with the warehouse project’s financing. Describe how the financial statements will be impacted by the choice to capitalize interest or not. Also describe managements’ incentives to capitalize interest (or not to capitalize).

(Related to Checkpoint 14.4) (Flotation costs and NPV analysis) The Faraway Moving Company is involved in a major plant expansion that involves the expenditure of $211 million in the coming year. The firm plans on financing the expansion through the retention of $142 million in firm earnings and by borrowing the remaining $69 million. In return for helping sell the $69 million in new debt, the firm's investment banker charges a fee of 150 basis points (where one basis point is 0.01 percent). If Faraway decides to adjust for these flotation costs by adding them to the initial outlay, what will the initial outlay for the project be? The flotation cost adjusted initial outlay is $. (Round to the nearest dollar.)

Kashmiri's Cost of Capital. Kashmiri is the largest and most successful specialty goods company based in Bangalore, India. It has not yet entered the North American marketplace, but is considering establishing both manufacturing and distribution facilities in the United States through a wholly owned subsidiary. It has approached two different investment banking advisors, Goldman Sachs and Bank of New York, for estimates of what its costs of capital would be several years into the future when it planned to list its American subsidiary on a U.S. stock exchange. Using the assumptions by the two different advisors in the popup window, E, calculate the prospective costs of debt, equity, and the WACC for Kashmiri (U.S.). What is the after-tax cost of debt estimated by Goldman Sachs for Kashmiri? 6.24% (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Assumptions Symbol Goldman Sachs Bank of New York 0.86 0.36 Estimate of…

Montclair Company is considering a project that will require a $520,000 loan. It presently has total liabilities of $210,000 and total assets of $630,000. 1. Compute Montclair's (a) current debt-to-equity ratio and (b) the debt-to-equity ratio assuming it borrows $520,000 to fund the project. 2. If Montclair borrows the funds, does its financing structure become more or less risky? 1. (a) 1. (b) 2. 1 Choose Denominator: 1 1 1 If Montclair borrows the funds, does its financing structure become more or less risky? Choose Numerator: Debt-to-Equity Ratio

You have estimated the NOPLAT for each of the divisions in a three-division firm at $20 million, $30 million, and $50 million, respectively, for Divisions A, B, and C. Using these figures, you assume that Divisions A, B, and C contribute 20, 30, and 50 percent, respectively, to overall firm value. Is this an appropriate valuation technique? Why or why not?

A developing country has determined that each additional​ $1 billion of investment in capital goods adds 0.3 percentage point to its​ long-run average annual rate of growth of per capita real GDP. Domestic entrepreneurs recently began to seek official approval to open a range of businesses employing capital resources valued at ​$27 billion. If the entrepreneurs undertake these​ investments, and assuming that other things are​ equal, calculate the​ nation's long-run average annual rate of growth of per capita real GDP up to a fraction of a percentage point.   nothing percent.  ​(Round your answer to one decimal​ place.)

Budget Wings Airlines is considering upgrading its fleet of aircraft as it expands from a regional airline to one offering service to a more nationwide portfolio of cities and airports. In support of this process, the CFO has asked you to determine the appropriate weighted average cost of capital (WACC) to use in the discounted cash flow analysis. You spend the morning gathering the following information: - Budget Wings has debt outstanding with a market value of $150 million. This debt is in the form of bonds that are currently priced at $946.33 per $1,000 face value and pay a coupon of 3.45%. The current yield-to-maturity (YTM) on these bonds is 4.11%. - Budget Wings stock is currently priced at $54.41 per share. You expect that next year's dividend will be $3.75 and you expect dividends to grow at 3%. The current market value of Budget Wings' common equity is $240 million. - Budget Wings has preferred equity outstanding with a market value of $30 million that offers an annual…

Montclair Company is considering a project that will require a $500,000 loan. It presently has total liabilities of $220,000 and total assets of $620,000. 1. Compute Montclair’s (a) current debt-to-equity ratio and (b) the debt-to-equity ratio assuming it borrows $500,000 to fund the project. 2. If Montclair borrows the funds, does its financing structure become more or less risky?

I need assistance on Identifying each of the following as either capital budgeting (investment) or financing decisions and an explanation on why? Intel decides to spend $1 billion to develop a new microprocessor. Volkswagen borrows 350 million euros from Deutsche Bank. Royal Dutch Shell constructs a pipeline to bring natural gas onshore from a production platform in Australia. Avon spends 200 million euros to launch a new range of cosmetics in European markets. Pfizer issues new shares to buy a small biotech company.

SA Construction Limited currently operates in Trinidad. The company is considering setting up another location in either Barbados or Jamaica. The Projected Income Statement for 2023 is as follows:USDIncomeSales 90,000Interest Income 2,500Dividend Income 6,000Other Income (exempt) 2,000ExpensesDepreciation 20,000Interest Expenses (1) 7,000 Repairs & Maintenance 1,500Legal & professional fees (2) 8,000Salaries 30,000 Bad debts (3) 3,000Other Expenses (4) 20,000  Taxation 2,250Notes1. All Interest was paid. There was no accrued interest at year end.2. Professional fees consist of:• Audit and accountancy fees $3,600• Legal fees re collection of bad debts $2,000• Cost of setting up business in the selected location $900• Architect’s fee for designing a warehouse that has not yet been constructed $1,5003. The Bad Debts expense represents a debt which was outstanding for 270 days.4. Other expenses include $1,000 for expenses paid on behalf of another company owned by SA Construction…

please solve this question general accounting

Solve this