Bogy Enterprises is an all-equity firm with a weighted average cost of capital of 10.25 percent. The current market value of the equity is $32.8 million, and the tax rate is 30 percent. What is EBIT? a. $2,145,066.35 b. $3,425,714.97 c. $5,228,571.18 d. $6,790,110.53 e. $48,02,857.14
Q: none
A: Step 1: Definition of Unused or Idle CapacityUnused or idle capacity refers to the portion of…
Q: Financial Accounting Question please answer
A: Step 1: Define Recognized Gain and Stock BasisRecognized Gain is the taxable portion of a realized…
Q: Financial Accounting
A: To solve this depreciation problem using the straight-line method, we'll follow the necessary steps…
Q: What are the total budgeted cash disbursement ?
A: Calculation of Payment for Materials Purchases in JunePayment for May purchases, paid in June = May…
Q: hello teacher please solve question
A: Step 1: Introduction to cost accountingThe field of accounting known as cost accounting is utilized…
Q: Please give me true answer this financial accounting question
A: Step 1:The yield to maturity is the rate at which the sum of PV of coupon payments and maturity…
Q: Carecter answer is
A: Step 1: Definition of Contribution Margin AnalysisThe contribution margin analysis for a firm…
Q: Provide answer please
A: Step 1: Definition of Recognized Gain or LossRecognized Gain or Loss is the difference between the…
Q: can you please solve this answer
A: The Price-to-Earnings (P/E) Ratio is calculated using the formula:P/E=Earnings per Share (EPS)Market…
Q: Can you please solve this general accounting question?
A: Step 1: Define Weighted-Average Inventory Costing MethodThe weighted-average inventory costing…
Q: Hii expert provide correct answer general accounting
A: Step 1: Define Gross ProfitGross profit is the difference between net sales and the cost of goods…
Q: I need correct option of this question general Accounting
A: Total return = (Selling price - Purchase price + Dividends)/Purchase price Total return =…
Q: What will be the amount of depreciation recognized in 2023 on these financial accounting question?
A: Step 1: Definition of DepreciationDepreciation is the systematic allocation of the cost of an asset…
Q: What is the firm's return on assets of this financial accounting question?
A: Step 1: Definition of Return on Assets (ROA)Return on Assets (ROA) is a financial metric that…
Q: Step by step answer
A: Step 1: Calculate the number of units that can be produced for each product. Product X:Machine hours…
Q: need this general accounting subjects solutions
A: Step 1: Definition of Return on Equity (ROE)Return on Equity (ROE) is a financial ratio that…
Q: I want to correct answer general accounting
A: To determine Lightning Audio's earned revenue for the year, we need to adjust the sales revenue by…
Q: What is the accounts receivable turnover ratio for this financial accounting question?
A: Step 1: Definition of Accounts Receivable Turnover RatioThe Accounts Receivable Turnover Ratio…
Q: Ans ? General Accounting question
A: Step 1: Define Total ReturnTotal Return measures the overall profitability of an investment,…
Q: expert plz answer
A: Step 1: Identify the ROCE FormulaStep 2: Identify the Given DataStep 3: Plug the values into the…
Q: Answer
A: Income earned = Additional sales * Margin Income earned = $560,000*8% Income earned = $44,800
Q: What is the firm's PEG ratio of this financial accounting question?
A: Step 1: Define PEG RatioThe Price/Earnings to Growth (PEG) ratio is a valuation metric that compares…
Q: A company can sell all the units it can produce of either Product X or Product Y but not both.…
A: Step 1: Calculate the number of units produced with available machine hours for each product.For…
Q: What is the materials price variance for the month ?
A: Explanation of Direct Materials Variance:Direct materials variance measures the difference between…
Q: need this general account subjects solutions
A: Step 1: Definition of Contribution Margin (CM) Per UnitContribution Margin (CM) per unit is the…
Q: Want Answer
A: Concept of Cost of Material SuppliedThe cost of material supplied refers to the total monetary value…
Q: Provide correct answer general accounting question
A: Step 1: Definition of Labor Efficiency VarianceLabor efficiency variance measures the difference…
Q: AI ANSWER WILL GET UNHELPFUL RATE
A: QUESTION 1 PLEASE NOTE: Please clarify with your examiner which predetermined overhead should be…
Q: Calculate the annual depreciation expense
A: Explanation of Straight-Line Depreciation Method: The straight-line depreciation method is a…
Q: What is the unit cost
A: Step 1: Definition of Unit CostUnit cost refers to the total cost incurred to produce a single unit…
Q: What amount will hocco corporation record as the acquisition cost of the land?
A: Explanation of Land Acquisition Cost:Land acquisition cost refers to the total amount spent to…
Q: hello tutor please help me
A: Step 1: Definition of Days' Sales in ReceivablesThe days' sales in receivables (also known as the…
Q: What is the correct option ?? general Accounting
A: Step 1: Define Compound InterestCompound interest is the interest calculated on both the initial…
Q: help me to solve this questions
A: Substituting the values: ROCE = $0.69/$49.00 * 100 ROCE=1.41% Thus, the analysts were forecasting a…
Q: answer plz
A: Here's the corrected calculation:Given data:Net income = $500,000Dividends to common stockholders =…
Q: Answer ? Financial accounting question
A: Step 1: Define Annual Interest RateThe annual interest rate is the percentage increase in the value…
Q: 4 POINTS
A: Calculation of Contribution per unitContribution per unit = Selling Price - Variable Cost = $120 -…
Q: Provide step by step explanation general Accounting question
A: Step 1:Given,Initial investment: $15,000Annual payments: $3,450Number of years: 4Step 2:There should…
Q: need this general accounting subjects solutions
A: Step 1: Definition of Return on Assets (ROA)Return on Assets (ROA) measures how efficiently a…
Q: Hello tutor please help me with accounting questions
A: Step 1: Definition of Rate of ReturnThe rate of return (ROR) measures the percentage gain or loss on…
Q: answer plz
A: Step 1: Definition of EquityEquity represents the ownership interest in a company held by…
Q: Hi expert please help me this question
A: Step 1: Given Value for Calculation Annual Revenue Increase = r = $31,000Annual Expenses Increase =…
Q: hello tutor please help me
A: Calculate Contribution MarginThe Contribution Margin per Unit is given by:Contribution Margin per…
Q: hi expert please help me
A: Step 1: Definition of Corporate TaxCorporate tax is a direct tax imposed on a company's income or…
Q: Solve this Accounting problem
A: Explanation of Debt-Equity Ratio:The debt-equity ratio is a financial metric that compares a…
Q: How much of the customer support cost will be assigned to department X?
A: Explanation of Customer Support Cost:Customer support cost represents the expenses incurred in…
Q: ག 頁 頁 頁 1 1 1 A ག ་ Common Stock Wage Expense. Revenue Cash- Utility Expense Beginning Retained…
A: Step 1:The income statement is prepared as follows: Formula table: Result of the above formula…
Q: What was the net income for the year?
A: Step 1: Introduction to stockholders' equityStockholders' equity refers to the residual value of the…
Q: Hy teacher give me answer please
A: Step 1: Definition of High-Low MethodThe high-low method is a cost estimation technique used to…
Q: Hello tutor provide answer this financial accounting question
A: Step 1: Analysis of information givenBeta = 1.2The yield on a 6-month T-bill can be taken as a…
MCQ
Step by step
Solved in 2 steps
- Bogy Enterprises is an all-equity firm with a weighted average cost of capital of 10.25 percent. The current market value of the equity is $32.8 million, and the tax rate is 30 percent. What is EBIT? a. $2,145,066.35 b. $3,425,714.97 c. $5,228,571.18 d. $6,790,110.53 e. $ 48,02,857.14SLG Corp. is an all-equity firm with a weighted average cost of capital of 10.02 percent. The current market value of the equity is $13.4 million and the total tax rate is 22 percent. What is EBIT?Dillon Enterprises has the following capDillon Enterprises has the following capital structure. Debt ........................ 40% Common equity ....... 60 The after-tax cost of debt is 6 percent, and the cost of common equity (in the form of retained earnings) is 13 percent. What is the firm’s weighted average cost of capital? a. An outside consultant has suggested that because debt is cheaper than equity, the firm should switch to a capital structure that is 50 percent debt and 50 percent equity. Under this new and more debt-oriented arrangement, the after-tax cost of debt is 7 percent, and the cost of common equity (in the form of retained earnings) is 15 percent. Recalculate the firm’s weighted average cost of capital. b. Which plan is optimal in terms of minimizing the weighted average cost of capital?
- Company X has debt and equity as sources of funds. Company X has market value of debt as $150,000 and book value of debt as $80,000. The company has book value of equity as $100,000 and market value of equity as $125,000. The cost of debt is 8.25% and cost of equity is 9.57%. the tax rate is 38%. What is the Weighted Average Cost of Capital (WACC)? a. 7.59% b. 7.78% c. 7.14% d. 7.68%← Unida Systems has 35 million shares outstanding trading for $12 per share. In addition, Unida has $95 million in outstanding debt. Suppose Unida's equity cost of capital is 16%, its debt cost of capital is 8%, and the corporate tax rate is 38%. a. What is Unida's unlevered cost of capital? b. What is Unida's after-tax debt cost of capital? c. What is Unida's weighted average cost of capital? a. What is Unida's unlevered cost of capital? Unida's unlevered cost of capital is%. (Round to two decimal places.)The Tip-Top Paving Co. has an equity cost of capital of 16.97%. The debt to value ratio is .6, the tax rate is 34%, and the cost of debt is 11%. What is the cost of equity if Tip-Top was unlevered? O a. 10.0%. O b. 16.0%. C. 12.0%. O d. 14.0%
- A company has determined that its optimal capital structure consists of 34 percent debt and the rest is equity. Given the following information, calculate the firm's weighted average cost of capital. Rd = 7.8%; Tax rate = 28 %: Po = $ 39.01; Growth = 5.1%; and D1 = $ 1.02. Show your answer to the nearest .1% Your Answer: Answer(Individual or component costs of capital) Compute the cost of capital for the firm for the following a. Currently bonds with a similar credit rating and maturity as the firm's outstanding debt are selling to yield 8.84 percent while the borrowing firm's corporate tax rate is 34 percent. b. Common stock for a firm that paid a $1.02 dividend last year. The dividends are expected to grow at a rate of 4 1 percent per year into the foreseeable future. The price of this stock is now $25 56, c. A bond that has a $1,000 par value and a coupon interest rate of 11.2 percent with interest paid semiannually. A new issue would sell for $1,151 per bond and mature in 20 years. The firm's tax rate is 34 percent d. A preferred stock paying a dividend of 7.7 percent on a $107 par value. If a new issue is offered, the shares would sell for $84 71 per share a. The after-tax cost of debt debit for the firm is (Round to two decimal places)Here is Icknield’s market-value balance sheet (figures in $ millions): Net working capital $550 Debt $800 long term assets $2,150 Equity $1,900 value of firm $2,700 $2,700 The debt is yielding 7%, and the cost of equity is 14%. The tax rate is 21%. Investors expect this level of debt to be permanent. a. What is Icknield’s WACC? b. How would the market-value balance sheet change if Icknield retired all its debt?
- Alpha Corporation has average annual free cashflows to the equity holder and to the firmof P3,000,000 and P3,350,000 respectively. Assuming that the weighted average cost ofcapital and actual return of on assets is 16.75% while the market return on Alpha's debt is7%, what is the value of its equity? a. P34,358,974.36 b.P15,000,000.00 c.P17,910,447.76 d.P20,000,000.00The Two Dollar Store has a cost of equity of 12.8 percent, the YTM on the company's bonds is 5.3 percent, and the tax rate is 35 percent. If the company's debt–equity ratio is .63, what is the weighted average cost of capital? Multiple Choice 7.86% 9.18% 7.06% 8.57% 9.80%(Individual or component costs of capital) Compute the cost of capital for the firm for the following: a. A bond that has a $1,000 par value (face value) and a contract or coupon interest rate of 10.4 percent. Interest payments are $52.00 and are paid semiannually. The bonds have The firm's marginal tax rate is 34 percet. b. A new common stock issue that paid a $1.76 dividend last year. The firm's dividends are expected to continue to grow at 7.8 percent per year, forever. The price of the firm's common stock is now $27.86. c. A preferred stock that sells for $125, pays a dividend of 9.1 percent, and has a $100 par value. d. A bond selling to yield 11.4 percent where the firm's tax rate is 34 percent. current market value of $1,125 and will mature in 10 years. a. The after-tax cost of debt is %. (Round to two decimal places.)
