ABC is an all-equity firm that has 44,200 shares of stock outstanding at a market price of $14.70 per share. The firm is considering a capital structure with 53% debt at a rate of 5% and use the proceeds to repurchase shares. Determine the shares outstanding once the debt is issued.
Q: Question
A: Step 1: First, we determine the ending inventory or the number of products left.So: Production -…
Q: hi expert please help me
A: Step 1: Definition of Predetermined Overhead RateThe predetermined overhead rate is used to allocate…
Q: Sub: general Accounting
A: Step 1: Define Discounting a Note ReceivableDiscounting a Note Receivable is the process of selling…
Q: Solve this Accounting problem
A: Explanation of Total Return: Total return is a comprehensive measure of an investment's performance…
Q: Financial Accounting
A: Step 1: Define Economic Order Quantity (EOQ)The Economic Order Quantity (EOQ) is a fundamental…
Q: Manufacturing overhead is ???
A: Step 1: Definition of Manufacturing OverheadManufacturing overhead includes all indirect costs…
Q: Problem related general Accounting
A: Step 1: Introduction to factory overheadsFactory overheads are defined as indirect costs that are…
Q: Rehan Manufacturing's break-even point in units is 1,800. The sales price per unit is $20, and the…
A: Explanation of Break-even Point: Break-even point represents the level of sales where total revenues…
Q: General Accounting
A: Detailed explanation:Acquisition cost of the computer system: List price$ 120,000Installation cost…
Q: Chapter 15 Homework 13 Saved Help Save & Exit Submit Part 1 of 2 0.83 points eBook Ask Required…
A: First, we need to calculate the overhead costs for each job. The overhead is applied based on a…
Q: what is the degree of operating leverage?
A: Step 1: Definition of Operating LeverageIn management accounting, the operating leverage refers to…
Q: General accounting question
A: Step 1: Definition of Inventoriable CostsInventoriable costs refer to all costs incurred in the…
Q: Find out
A: Concept of Cost-Volume-Profit (CVP) AnalysisCost-Volume-Profit (CVP) Analysis is a financial tool…
Q: Calculate gross profit and gross profit ratio please given solution general accounting question
A: Step 1: Introduction to income statementIncome statement is referred to as the financial statement…
Q: Accurate answer
A: Explanation of Cost of Goods Sold (COGS):Cost of Goods Sold (COGS) represents the direct costs…
Q: What is the net operating income of this financial accounting question?
A: Step 1: Define Net Operating Income (NOI)Net Operating Income (NOI) measures a company's operating…
Q: The owner's equity in a business amounted to $76,000 at the beginning of the year and $135,000 at…
A: Step 1: Net Income for the year can be calculated by using the ending equity formula - Ending Equity…
Q: correct answer please
A: Step 1: Definition of Labor Rate VarianceLabor rate variance is the difference between the actual…
Q: None
A: Step 1: Definition of Inventoriable CostsInventoriable costs are all costs incurred in manufacturing…
Q: 76 Financial Accounting
A: Concept of Issued SharesIssued shares refer to the total number of shares that a company has sold to…
Q: None
A: The profit margin is 6.9%, which means the firm earns 6.9% of its sales as net income.Net Income =…
Q: general accounting fina
A: Step 1: Definition of Dupont AnalysisThe Dupont analysis is a significant study in management…
Q: What is the amount of budgeted direct labor cost?
A: Explanation of Direct Labor Cost: This represents the cost of wages paid to workers who directly…
Q: Give me correct answer this financial accounting question
A: Step 1: Definition of Return on Assets (ROA)Return on Assets (ROA) is a financial ratio that…
Q: Please give me true answer this financial accounting question
A: Step 1: Definition of Price-to-Earnings (P/E) RatioThe Price-to-Earnings (P/E) Ratio is a financial…
Q: plz best answer
A: Step 1: Definition of The Accounting EquationThe accounting equation is a very useful equation…
Q: What is its average inventory of this financial accounting question?
A: Step 1: Define Inventory Turnover RatioThe Inventory Turnover Ratio is a financial metric that…
Q: Fixed expenses:140000, variable expenses:720000
A: Explanation of Contribution Margin: Contribution margin represents the difference between sales…
Q: Need help with this financial accounting question not use ai and chatgpt
A: Step 1: Definition of Accounts Receivable Turnover RatioThe Accounts Receivable Turnover Ratio…
Q: What is the Equity Ratio for this general accounting question?
A: Step 1: Definition of Equity RatioThe Equity Ratio measures the proportion of a company's total…
Q: Accurate answer
A: Explanation of Consolidated Net Income:Consolidated net income represents the combined net income of…
Q: financial accounting ans
A: Step 1: Definition of Return On EquityReturn on equity is often used to gauge the overall efficiency…
Q: What would be the operation profit
A: Income Statement Sales 936,000 (24,000 * 39)Less:Variable cost(552,000) (24,000 * 23) Contribution…
Q: What is the net profit margin of this general accounting question?
A: Step 1:The sales divided by total assets is known as the asset turnover ratio. The net profit margin…
Q: What is hamilton's gross profit percentage?
A: Explanation of Net Sales: Net sales represents the total revenue generated from sales after…
Q: What is the cost of goods sold for the company?
A: To calculate the Cost of Goods Sold (COGS) for New Technologies, we can use the information…
Q: Revenue that should be recorded for the quarter ending
A: The interest revenue that should be recorded for the quarter ending March 31 is calculated as…
Q: What is the length of the firms cash conversion cycle?
A: The question requires the determination of the cash conversion cycle. The cash conversion cycle,…
Q: What is the couple marriage penalty or benefit?
A: 1. Filing Jointly (combined taxable income of $300,000):Tax on $300,000 (2013 tax brackets for…
Q: assume the cost of capital is
A: Return of the original investment:This is the initial amount Mirar Vision Clinic invested, which is…
Q: need help this questions
A: Current Earnings Per Share (EPS)EPS= Net Income/Shares OutstandingEPS= 9,750,000/5,500,000=1.7727P/E…
Q: What is the beginning inventory?
A: Explanation of Beginning Inventory:Beginning inventory refers to the value of goods a company has on…
Q: ABC is an all-equity firm that has 44,200 shares of stock outstanding at a market price of $14.70…
A: We start with the following information:Initial number of shares: 44,200Current market price per…
Q: What is the net income?
A: Explanation of Sales Revenue: Sales revenue represents the total amount of money a company receives…
Q: If you give me correct answer the financial accounting question I will give you helpful rate
A: Step 1: Calculation of average cost per unitTotal units purchased = 700Total cost = $5,180Step 2:…
Q: One year ago, you purchased 500 shares of Summit Tech Corp. stock at a price of $10.50 per share.…
A: The question requires the determination of the total percentage return of a stock. A "total…
Q: provide correct answer
A: Step 1: Definition of Total Product CostThe Total Product Cost includes all costs related to…
Q: answer plz
A: Step 1: Definition of Variable CostingVariable costing is a cost accounting method where only…
Q: Java Company uses a job order cost system and applies overhead based on estimated rates. The…
A: Concept of Overhead CostsOverhead costs are indirect costs that are not directly tied to the…
Q: general accounting an
A: Step 1: Definition of Degree of Operating LeverageThe degree of operative leverage (DOL) indicates…
Provide Right solution
Step by step
Solved in 2 steps
- ABC IS AN ALL-EQUITY FIRM THAT HAS 43,240 SHARES OF STOCK OUTSTANDING AT A MARKET PRICE OF $15.97 PER SHARE. THE FIRM IS CONSIDERING A CAPITAL STRUCTURE WITH 50% DEBT AT A RATE OF 6% AND USE THE PROCEEDS TO REPURCHASE SHARES. THE SHARES OUTSTANDING DETERMINE ONCE THE DEBT IS ISSUED.Need answerJimmy Shoes Inc. has 10,000 shares outstanding with a stock price of $40 per share. The current weighted average cost of capital is 7%. It also carries long-term debt of $200,000 at an interest rate of 7% p.a. One of the agenda items in its AGM is to switch to a D/E of 1. Based on this information, answer the following questions: a) What will be the number of outstanding shares for Jimmy Shoes Inc. if it switches to a D/E ratio of 1? (Hint: Current Debt = $200,000, current equity = 10,000 shares x $40 = $400,000, current D/E = 2/4 = 0.5/1. If the firm seeks to increase its D/E to 1, it can think of borrowing more)
- Simone's Sweets is an all-equity firm that has 9,100 shares of stock outstanding at a market price of $27 per share. The firm's management has decided to issue $88,000 worth of debt at an interest rate of 6 percent. The funds will be used to repurchase shares of the outstanding stock. What are the earnings per share at the break-even EBIT?The common stock of High Energy is selling for $58 a share. Currently, the firm has a total market value of $1,314,900 and a book value of $647,600. How many shares of stock will be outstanding if the firm does a stock split of five-for-two?A firm has 1 million shares outstanding with a book value per share of $10 per share. The stock sells for a price of $20 per share. The firm’s bonds have a par value of $8 million and are currently selling at a price of 120 percent of par. What is the appropriate proportion of equity to use in the WACC calculation? 71.4 percent 51.0 percent 55.6 percent 48.0 percent 67.6 percent
- National Power has 1020000 shares outstanding. Each share sells for $25. The company wants to raise $5100000 in new equity. Suppose the exercise (subscription) price is set at $15 per share. Calculate the Number of Shares per Right.Covid Contractors has 4.5 million shares of common stock outstanding, 1 million shares of preferred stock outstanding, and 200 thousand bonds ($1,000 par). The common shares are selling for $50.00 per share, the preferred share are selling for $75 per share, and the bonds are selling at par. What would be the weight used for common stock in the computation of Team's WACC? What would be the weight used for preferred stock in the computation of Team's WACC? c. What would be the weight used for bonds in the computation of Team's WACC?Flaherty Electric has a capital structure that consists of 70 percent equity and 30 percent debt. The company’s long-term bonds have a before-tax yield to maturity of 8.4 percent. The company uses the DCF approach to determine the cost of equity. Flaherty’s common stock currently trades at RM40.50 per share. The year-end dividend (D1) is expected to be RM2.50 per share, and the dividend is expected to grow forever at a constant rate of 7 percent a year. The company estimates that it will have to issue new common stock to help fund this year’s projects. The company’s tax rate is 40 percent. What is the company’s weighted average cost of capital, WACC?
- MV Corporation has debt with market value of $100 million, common equity with a book value of $104 million, and preferred stock worth $22 million outstanding. Its common equity trades at $54 per share, and the firm has 6.4 million shares outstanding. What weights should MV Corporation use in its WACC? The debt weight for the WACC calculation is __% ? The preferred stock weight for the WACC calculation is __% ? The common equity weight for the WACC calculation is __% ?Bernard Corporation wants to obtain P4 million in its first public issue of common stock. After the issuance, the total market value of a stock is estimated at $10 million. At present, there are 120,000 closely-held shares. REQUIREMENTS: (a) What is the amount of new shares that must be issued to obtain the P4 million? (b) After the stock issuance, what will be the expected price per share?Nacho Libre S.A. has 3,000,000 common shares outstanding that trade for $20.00 per share. The company has also issued one bond with a par value of $60,000,000 that currently trades at 110 percent of par. You observe that the company's required return on stock is 10.00 percent and the (after-tax) yield to maturity on its debt is 2.00 percent. What is the weighted average cost of capital? Write your answer as a percent rounded to two decimals, but don't include % sign. Numeric Response
