provide answer please QUESTION:Ramirez Company is considering a project that will requirea $500,000 loan. It currently has total liabilities of$220,000 and total assets of $620,000.a. Compute Ramirez's present debt-to-equity ratio.b. Compute Ramirez's debt-to-equity ratio assuming itborrows $500,000 to fund the project.

Definition of the Debt-Equity Ratio:The debt-to-equity ratio is a financial metric that analyzes how…

Answered: QUESTION: Ramirez Company is…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The company is in search of resources for a new investment of TL 3,000,000. As a financial manager,a) Find the current weighted average cost of capital according to the resource distribution below.b) Discuss, what kind of financing strategy would you propose for the investment project in question.
1. From the following information determine the appropriate WACC relevant for evaluating L-T Investment projects of the company: Cost of Equity AT Cost of L-T debt AT cost of S-T debt Source of Capital Equity L-T debt S-T debt 14% Book value Rs. 6,00,000 4,00,000 1,00,000 8% 5% Market Value Rs. 7,25,000 4,50,000 1,00,000
Find the Weighted Average Cost of Capital of K Ltd. For the new project.
An FI is planning the purchase of a $4 million loan to raise the existing average duration of its assets from 4.8 years to 6.3 years. It currently has total assets worth $20 million, $4 million in cash (0 duration), and $16 million in loans. All the loans are fairly priced. a-1. Assuming it uses the cash to purchase the loan, calculate the duration of the existing loan. a-2. Assuming the FI uses the cash to purchase the loan and that the loan has a 8.3 year duration, calculate the resulting duration of the asset portfolio. a-3. Should it purchase the loan if its duration is 8.3 years?b. What asset duration loans should it purchase in order to raise its average duration to 6.3 years?
Please use the images attached to answer the following:Determine the weighted average cost of capital (WACC) for VigourPharmaceuticals.
Required: i.Determine the initial capital of Project A and Project B. If Project A and Project B are mutually exclusive, calculate the Net Present Value (NPV) of Project A and Project B given that the cost of capital is 5%.Based on the NPV method, explain with reason which project should be invested. ii. Axis Sdn. Bhd.’s current investment policy is to accept only investments that are recoverable within 3 years.Calculate the discounted payback period of Project A and Project B if the cost of capital is5%. Based on the calculated discounted payback period of Project A and Project B, advise the company on which new project to select if they are mutually exclusive.
Soggy Bottom, Inc. has received a term sheet from WeBeFunding Ventures for a $4,000,000 investment. Use the following cap table and facts to answer the questions below: Round Date 1. The pre-money valuation is $8,000,000. 2. Jolly Angels invested $2,000,000 with conversion terms of the lesser of a. 20% discount off the qualified financing, and b. valuation cap of $6,000,000. The notes are interest free. 3. WeBeFunding term sheet requires establishment of an option pool of 500,000 shares immediately prior to funding. Owner Common Shares Roxanne Ben Option Pool Preferred Shares Jolly Angels Conv Note WeBeFunding Ventures Total Price per share Pre-money valuation Post-money valuation Questions Investment $1,000 $1,000 $2,000 S S S Founders 8/1/2020 Shares 1,000,000 1,000,000 Investment 50.0% S 50.0 % S $2,000,000 2,000,000 100.0% $2,000,000 0.001 2,000 Angel Round 9/1/2022 Shares A. What is the implied price/share of the WeBeFunding Ventures round? B. What is the post-money valuation? C.…
ABC Enterprise would like to evaluate/analyze a potential investment.. Given the following:Investment amount - 450,000 (2022)Dividends / Revenue stream - 100,000 for the first year and an interval of 5,000 for the succeeding years Discount rate - 14%a. NPV for the perio 2023 through 2029;b. Total NPV using manual computation;c. Total NPV using the Excel function; andd. IRR rate.
3. ABC is planning to undertake a certain project that will require an investment of P 350,000 from which it expects to realize a 22 % rate of return. Loans may be obtained at the interest rate of 18 % per annum and income tax rate is 35 %. Determine the cost of borrowed capital for ABC co. Will the loan be obtained by ABC for the new project ? Why ?

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