Suppose Caterpillar, Inc., has 665 million shares outstanding with a share price of $74.77, and $25 billion in debt. If in three years, Caterpillar has 700 million shares outstanding trading for $83 per share, how much debt will Caterpillar have if it maintains a constant debt-equity ratio?
Q: General accounting
A: Step 1: Define NoteThe note can be defined as a promissory note in which the borrower promises to…
Q: Expert of general account hrlp me
A: To determine how much depreciation expense will be included in Finished Goods Inventory under…
Q: Financial Accounting Question
A: Step 1: Given Notes payable = $420,000 Annual interest rate = 8% January to March 31: 3 monthsTime =…
Q: Subject: Financial Accounting
A: Concept of Net Sales:Net sales refer to the total revenue a company generates from selling its goods…
Q: General Accounting question
A: Step 1: Define Earnings Per ShareEarnings per share are computed by dividing the earnings available…
Q: Kindly help me with accounting questions
A: Step 1: Definition of Days Sales Outstanding (DSO)Days Sales Outstanding (DSO) measures the average…
Q: Don't use ai given answer accounting questions
A: Step 1: Definition of High-Low MethodThe high-low method is a cost estimation technique used to…
Q: What is the amount of income or loss from acceptance of the offer?
A: Step 1: Define Differential CostDifferential costs involve two alternative choice costs. It has the…
Q: Don't Use Ai
A: Explanation of Sales on Account:Sales on account represent the total revenue generated by a company…
Q: What does it cost per year to carry this inventory?
A: To calculate the annual inventory carrying cost, we sum up the cost components that contribute to…
Q: Do fast answer of this general accounting question
A: Step 1: Define Standard CostingStandard costs are used in variance analysis to help managers…
Q: What is net income under absorption costing???
A: Detailed explanation:Net Income using Variable Costing $ 908,000Less Change in Inventory :…
Q: Hi teacher please help me this question general accounting
A: Step 1: Define ManufacturingManufacturing is the process of producing goods using various inputs…
Q: Provide correct answer general Accounting
A: Step 1: ROE needs to be computed by using the DuPont formula as stated below: ROE = Profit Margin *…
Q: I want answer
A: Explanation of Assets:Assets are resources owned or controlled bya company that are expected to…
Q: Give me answer this accounting question
A: Step 1: Define Stockholders' EquityStockholders' equity represents the owners' claim on the…
Q: Net Sales of ___.
A: Explanation of Net Sales:Net sales represent the total revenue a company earns from its sales…
Q: Johnson, Inc. receives $5,000 cash for fees earned. What is the effect of this transaction? a. Total…
A: The correct answer is:c. Net income will increase. Explanation of the TransactionJohnson, Inc.…
Q: Johnson corp purchased
A: Explanation: In the given case, it is stated that the entity purchased a group of assets for…
Q: The gross profit margin? Please provide answer for below financial accounting question
A: Explanation of Sales:Sales refer to the total revenue generated by a business from selling goods or…
Q: Hello tutor please provide correct answer general Accounting
A: Step 1: Define Predetermined Overhead RateA company's predetermined overhead rate is used to…
Q: Need help with this accounting questions
A: Step 1: Definition of Degree of Operating Leverage and Its ImpactThe degree of operating leverage…
Q: None
A: Step 1: Define Marginal CostingMarginal costing is a decision-making technique that managers use to…
Q: Per unit of each product follows
A: Concept of Selling Price per Unit:The selling price per unit represents the amount a company charges…
Q: Provide correct answer the accounting question
A: Step 1: Define Stockholders' EquityStockholders' equity represents the residual interest in the…
Q: General accounting
A: Step 1: Definition of Operating LeverageOperating leverage measures the sensitivity of a company's…
Q: Units the price is ?????
A:
Q: Financial accounting
A: Step 1: Define Net IncomeThe net revenue earned on which taxes are paid after the business expenses…
Q: The basic accounting equation cannot be restated as: a. Assets Liabilities = Owner's Equity. b.…
A: The basic accounting equation is: Assets=Liabilities+Owner's Equity. This equation can be…
Q: Machine purchased solve this general accounting question
A: Step 1: Formula Annual depreciation = (Cost - Residual value)/Useful life Step 2: Substitution…
Q: George Company has a relevant range of 150,000 units to 400,000 units. The company has total fixed…
A: Step 1: Calculate the total variable costs at 175,000 unitsStep 2: Calculate the variable cost per…
Q: Quick answer of this accounting questions
A: Explanation for a: In the given case, we are required to calculate the no. of shares the bond can be…
Q: General Accounting Question please answer
A: Step 1: Define Contribution Margin and Target ProfitThe contribution margin is the difference…
Q: What is cost of equity on these financial accounting question?
A: Step 1: Given Value for Calculation Risk free Rate = rf = 3%Market Return = rm = 11%Beta = b = 1.6…
Q: Determined the predetermined shop overhead rate
A: Explanation of Predetermined Overhead Rate: The predetermined overhead rate is a cost allocation…
Q: Do fast answer of this general accounting question
A: Explanation: In the given case, we are required to calculate the amount of manufacturing overhead…
Q: Packard Corporation reported pretax book income of $501,100. Included in the computation were…
A: Step 1: Understanding the DataWe are given:Pretax Book Income: $501,100Favorable Temporary…
Q: MCQ
A: Concept of Intangible Assets:Intangible assets are non-physical resources that provide long-term…
Q: I want to this question answer gquestion Accounting
A: Step 1: Define Gross ProfitBefore any deductions or taxes, the total of all wages, salaries,…
Q: Provide Answer
A: Calculation of Direct Labor CostDirect Labor Cost = Number of Hours x Driver Rate of Labor = 5 x $9…
Q: I want to this question answer general Accounting
A: Step 1: Determine the taxable portion of the $2,000 gross earningsStep 2: Calculate the Social…
Q: General Accounting question
A: Step 1: Define Weekly payWeekly pay is the income that the individual earns by providing different…
Q: Financial Account query
A: To compute the equivalent units of production (EUP) for conversion costs under the weighted-average…
Q: financial account
A: Step 1: Key Formula for Net IncomeUnder variable costing, net income is calculated as:…
Q: Alpha Corporation applies overhead costs to jobs on the basis of direct labor costs. Job O, which…
A: Explanation of Job Costing: Job costing is a cost accounting method used to track and accumulate…
Q: Please answer the accounting question without use Ai
A: Step 1: Define Variable CostVariable cost is a cost that varies with the level of production output.…
Q: Merchandise is sold on account to a customer for $72,500, terms GEB shipping point, 3/10, n/30. The…
A: Explanation of FOB Shipping Point: FOB Shipping Point (Free on Board Shipping Point) indicates that…
Q: Provide general Account Answer. NO AI USE FOR YOUR INFORMATIONS
A: The correct term is:Asset Explanation:An asset is defined as an economic resource that is expected…
Q: Financial Accounting Question please solve this problem
A: Step 1: Define Preferred Stock OutstandingPreferred stock outstanding refers to the number of…
Q: What is the cost of goods manufactured for the year ended December 31 , 2004? General accounting
A: Step 1: Define Cost Of Goods ManufacturedIt represents the sum of all the costs incurred on the…
Please give me answer this financial accounting question
Step by step
Solved in 2 steps
- Please help me.Suppose that Papa Bell, Inc.’s equity is currently selling for $50 per share, with 3.5 million shares outstanding. Assume the firm also has 12,000 bonds outstanding, and they are selling at 94 percent of par.What are the firm’s current capital structure weights? Capital Structure Weights Equity % Debt %What is the value of equity and debt?
- Time Warner shares have a market capitalization of $55 billion. The company just paid a dividend of $0.35 per share and each share trades for $35. The growth rate in dividends is expected to be 6.5% per year. Also, Time Warner has $20 billion of debt that trades with a yield to maturity of 7%. If the firm's tax rate is 30%, compute the WACC?Suppose Compco Systems pays no dividends but spent $4.95 billion on share last year. Compco's equity cost of capital is 11.9% and if the amount spent on repurchases is expected to grow by 7.8% per year, estimate Compco's market capitalization. If Compco has 5.2 billion shares outstanding, what stock price does this correspond ?Time Warner shares have a market capitalization of $70 billion. The company is expected to pay a dividend of $0.35. per share and each share trades for $20. The growth rate in dividends is expected to be 8% per year. Also, Time Warner has $15 billion of debt that trades with a yield to maturity of 8%. If the firm's tax rate is 25%, compute the WACC? O A. 9.09% B. 7.72% C. 8.63% OD. 8.18%
- Suppose Compco Systems pays no dividends but spent $5.15 billion on share repurchases last year. If Compco's equity cost of capital is 12.3%, and if the amount spent on repurchases is expected to grow by 8.9% per year, estimate Compco's market capitalization. If Compco has 5.9 billion shares outstanding, to what stock price does this correspond?Time Warner shares have market capitalization of $55 billion. The company just paid a dividend of $0.30 per share and each share trades for $45. The growth rate in dividends is expected to be 7% per year. Also, Time Warner has $15 billion of debt that trades with a yield to maturity of 9%. If the firms tax rate is 40%, compute the WACC? A. 7.22% B. 8.3% C. 7.94% D. 6.86%A company has a current value of operations of $800 million,and it holds $100 million in short-term investments. If thecompany has $400 million in debt and has 10 million commonshares outstanding, what is the estimated price per share?($50.00
- Suppose Compco Systems pays no dividends but spent $5.16 billion on share repurchases last year. If Compco's equity cost of capital is 12.7%, and if the amount spent on repurchases is expected to grow by 8.2% per year, estimate Compco's market capitalization. If Compco has 5.7 billion shares outstanding, to what stock price does this correspond? Compco's market capitalization will be $ billion. (Round to two decimal places.)Time Warner shares have a market capitalization of $65 billion. The company just paid a dividend of $0.30 per share and each share trades for $35. The growth rate in dividends is expected to be 8% per year. Also, Time Warner has $15 billion of debt that trades with a yield to maturity of 7%. If the firm's tax rate is 25%, compute the WACC? O A. 7.82% O B. 8.24% OC. 9.06% O D. 9.47%Suppose that Papa Bell Inc. equity is currently selling for $41 per share, with 3.6 million shares outstanding. The firm also has 8000 bonds outstanding, which are selling at 95% of par. Assume Papa Bell was considering an active change to its capital structure so as to have a D/E ratio of 0.5. Which type of security (stocks or bonds) would the firm need to sell to accomplish this? How much would it have to sell? (Enter your answer in dollars not in millions. Do not round immendiage calculations and round your final answer to 2 decimal places.)