A portfolio holds shares in three companies. Given the information for each company in the table above, calculate the portfolio weighting for each company. Company Number of shares Current share price RIO 200 $126.70 BHP 450 $78.40 FMG 630 $23.05       RIO: 30%; BHP: 40%; FMG: 30%     RIO: 15.6%; BHP: 35.2%; FMG: 49.2%     RIO: 33.7%; BHP: 47.0%; FMG: 19.3%     RIO: 47%; BHP: 33.7%; FMG: 19.3%

Q: nofar Energy Services maintains a mix of 30%, debt, 25% preferred stock, and 45% common stock in its…

A: WACC is the overall avg. cost of the firm from all different finance sources. It is equal to the sum…

Q: hudson plc’s outline statement of financial position as at a particular date was as follows:…

A: The documented assets, liabilities, and equity balances of a company are represented by its…

Q: The following information relates to A Ltd and B Ltd. Two companies which operate in the same…

A: Earning Per Share- Earning Per Share is the ratio of a company's earnings for its equity…

Q: Faber Corporation has a target capital structure of 40% bond financing, 10% preferred stock…

A: Bond Weight= 40% Preferred Stock Weight = 10% Common Stock Weight = 50% Cost of Bond =7% Cost of…

Q: he following table shows the share price, EPS and growth rates for three stocks.  Based on PEG…

A: To determine PEG ratio, we need to use the formula below: PEG ratio = P/E ratioGrowth %P/E Ratio…

Q: Price-Earnings Ratio: Dividend Yield The table that follows shows the stock price, earnings per…

A: Ratio analysis means where the various ratio can be found out with different name and meaning and…

Q: The company capital structure consists of debt 135000 at 6.05%, common stock 410000 at 10.09% and…

A: The weighted normal expense of capital (WACC) is a computation of an association's expense of…

Q: A company issues 10% preference shares with a par value of Sh 100 per share. The current market…

A: Preference share refer to the those shares which gives the shareholder a surety of fixed dividend…

Q: Reuters PLC has the following capital structure: Ordinary shares - $0.70 Retained earnings 7000 4500…

A: Weighted Average overall cost of capital of the firm under which the cost related to all sources of…

Q: and equity of $5,432,000 with a P%. What is Skyler's weighted average I your intermediate…

A: Sum of equity and debt = $4,268,000 + $5,432,000 = $9,700,000

Q: EBIT-EPS and capital structure Data-Check is considering two capital structures. The key information…

A: A leveraged company is one that has long term debt in its capital structure along with equity. More…

Q: The following financial information is available on Morgan Company: Current per share market price:…

A: Here,Current per Share Market price is $58.90Current per Share Dividend is $2.80Expected Long term…

Q: Clockmaker Plc. owns 50% of the ordinary shares of Cloud Plc. On the acquisition date, Cloud Plc.…

A: Acquisition can refer to the process of acquiring or obtaining something, often with the implication…

Q: Assume Skyler Industries has debt of $4,343,000 with a cost of capital of 7.8% and equity of…

A: Weighted average cost of capital is one of important calculation being done in finance. This means…

Q: An investor is deciding whether to purchase 5,000 ABC Inc. shares which has an EPS ratio of P75. He…

A: Price which the investor should pay should be the price as per the PE ratio of the industry minus…

Q: You are required to calculate the Weighted Average Cost of Capital (WACC) of Sethoo & Sons Limited…

A: Proportion of ordinary shares and debt for each companies is calculated as below: Excel Working:…

Q: The company capital structure consist of debt 380000 @ 4.05%, common stock 220000@ 12.09% and…

A: WACC is the average cost of capital which can be calculated by using this equation WACC =Debttotal…

Q: Assume the following information about a firm's capital components: What is the firm's WACC? capital…

A: WEIGHT = Amount / Total amount.Product = Weight * Cost.WACC = Total of Product.

Q: The company capital structure consists of debt 150000 at 4.05%, preferred stock is 20% from debt…

A: Weighted average cost of capital (WACC): It is a method of calculating a company's cost of capital…

Q: The company capital structure consists of debt 250000 at 6.05%, preferred stock is 50%  from debt…

A: The weighted average cost of capital (WACC) refers to the average cost that is paid by a company to…

Q: Consider the following table of Earnings Components: Reported EPS Analyst's EPS composition:…

A: EPS is a tool used by investors to assess a company's long-term success. A company's capacity to…

Q: Gulf Shores Inn is comparing two separate capital structures. The first structure consists of…

A: The capital structure of a firm refers to the way that the firm finances its operations by using a…

Q: Paranto company has the following Capital structure: 50% equity, 30% debt; and 20% preferred stock.…

A: Weighted average cost of capital(WACC) is the average cost of capital calculated by multiplying the…

Q: You would like to make a direct comparison between Maligaya Co. and Masaya Inc. stocks. Maligaya and…

A: Book Value: Book value is the accounting worth of an organization's assets less any claims that have…

Q: Assume Skyler Industries has debt of $4,326,000 with a cost of capital of 7.9% and equity of…

A: Determination of Weighted Cost PARTICULAR AMOUNT COST OF CAPITAL WEIGHTED COST         Debt…

Q: The Tyler Oil Company's capital structure is as follows: Debt Preferred stock Common equity 15% 20…

A: The cost of capital is the expense a company incurs to finance its operations. It includes the cost…

Q: The company capital structure consists of debt 150000 at 4.05%, preferred stock is 20% from debt…

A: The weighted average cost of capital (WACC) refers to the average cost that is paid by a company to…

Q: Market price Outstanding units Book value Cost of capital Equity $30.00 120,000 $3,000,000 15%…

A: WACC is the cost of capital and is the weighted cost of equity ,weighted cost of debt and weighted…

Q: Consider firm X and Y.The firm had total earrings of $400,000 and shares outstanding of $95,000.…

A: We have to find the total assets of the combined entity after the merger transactions, in two…

Q: Global Technology's capital structure is as follows: Debt Preferred stock Common equity 15% 50 35…

A: Cost (after-tax)WeightDebt8.50%15%Preferred stock12.00%50%Common equity15.50%35%

Q: The Capital Structure for the ABC Corp. is as follows: Preferred Stock $ 3,750 Common Stock $ 5,750…

A: To calculate the weighted average cost of capital (WACC) for ABC Corp., we need to first determine…

Q: Compute Proprietary Ratio From the following Particulars $ Equity Share Capital 5,00,000 Preference…

A: Proprietary ratio is one of the solvency ratio of the business which is useful for determining…

Q: Calculate the total cost, proceeds, and gain (or loss) (in $) for the stock market transaction.…

A: Purchase cost of buying Stock :— It is calculate by adding all the cost paid for the acquisition of…

Q: The company capital structure consists of debt 250000 at 0.071, preferred stock 230000 at 11% and…

A: Here, Debt is 250,000 Cost of Debt is 7.1% Preferred Stock is 230,000 Preferred Rate is 11% Common…

Q: The company capital structure consist of debt 340000 @ 4.05%, common stock 40% of preferred stock @…

A: Weighted average cost of capital (WACC) is a firm's cost of capital.

Q: 4. An entity showed the following data: Share capital, par value P50 5,000,000 Share premium 200,000…

A: According to the given question, we need to compute the total shareholders' equity and balance of…

Q: Given the following information: Percent of capital structure: Debt Preferred stock Common equity…

A: Cost of each source of capital is calculated below After tax cost of debt = Bond yield to…

Q: If a company issues common stock and coupon bonds and the debt-to-equity ratio are 0.85, the cost of…

A: Given information Debt Equity ratio = 0.85 Cost of equity = 12% Pretax cost of debt = 7% Tax rate =…

Stock Yields

The stock yield is otherwise known as the dividend yield. The dividend yield is an annual payment of the stock dividends to the holder of a firm’s stock. The dividend yield is a financial ratio to measure the value of dividend payout every year for the relative stock price. The yield of a stock is usually shown in a percentage that discloses the expected future earnings from stock depending on the current stock price in the future. Stock yield will change depending on the market fluctuations and in accordance with the market fluctuations, the dividends will be increased or decreased by the firm.