The return on assets for Super Express Ltd is 12.3% pa. Currently the capital structure for Super Express Ltd is 100% equity but management are considering issuing debt. Super Express Ltd has 34,400 shares on offer at a current price of $5.78 per share. Management wishes to issue enough debt capital to repurchase 35% of existing shares at the current share price. a)Calculate the amount of debt that the management of Super Express will be issuing. Give your answer in dollars to the nearest dollar. Debt issued = $  b)Calculate the debt to equity (leverage) ratio of Super Express Ltd after the debt issue. Give your answer rounded to 2 decimal places. Debt to equity ratio =

Q: Serbanika Limited has issued share capital of 2 million common shares, par value $1.00. The board of…

A: Ordinary shares = 2,000,000 Right issue =1:4 shares Cost of Issue = $50,000 Par value = $1 Issue…

Q: Sambo Ltd is a levered firm with a debt ratio of 55% and its Net Income for next year is projected…

A: Earnings per share "EPS" is the Net Income divided by number of shares outstanding. Similarly,…

Q: The directors of Pav Limited have appointed you as their financial consultant. They are considering…

A: Answer image:WESTWOOD LIMITED INVESTMENT PROJECT SHARE VALUE$0.75NO. OF SHARES$3,450,000.00MARKET…

Q: Santa PLC is an all equity financed company with 100 million shares outstanding trading at €2 per…

A: Discount- In simple terms, Discount is an allowance or compromise in value. Discount is given so…

Q: e and the share sells for R 30. Their abbreviated balance sheet before paying out dividend is : R.…

A: A dividend is a profit distribution made by a corporation to its shareholders. When a corporation…

Q: Pipe Ltd is a totally equity-financed company with a value of R200 000,00. Management wants to…

A: The capital structure refers to the kind of securities and the proportionate amounts that make up…

Q: A. The capital for investment of Executive Consultants, Inc. is as follows: Sources of capital…

A: Meaning of Cost of Equity Capital :- Cost of equity is the percentage return demanded by a company's…

Q: Mayr Inc. currently has no debt in its capital structure. It has 50,000 shares outstanding that are…

A: EBIT = $400,000Number of shares outstanding = 50,000Current share price = $158Tax rate = 30%The…

Q: A company with 30 million shares outstanding at price £9.00/share pays corporate taxes of 32%. The…

A: Given Information: Existing number of shares = 30 million Price per share = £9.00 Corporate taxes =…

Q: Brian Inc has a asset of 400,000 in total where it comprises of equity 70% and debt of 30% (12%)…

A: Optimal capital structure is mix of financing the company with equity and debt level with the intent…

Q: suppose that the Matrix corporation has $120 million of assets, all financed with equity, and that…

A: The combination of debt and equity used to fund a company's assets and activities is referred to as…

Q: Serbanika Limited has issued share capital of 2 million common shares, par value $1.00. The board of…

A: There are various means in which the company can raise the additional finance required such as…

Q: A firm had a current market value of $3,637,500 and is comparing two different capital structures:…

A: EPS stands for Earnings Per Share. It's a financial metric that is calculated by dividing a…

Q: ou were hired as a consultant to XYZ Company, whose target capital structure is  32% debt, 11%…

A: WACC better known as Weighted Average Cost of Capital is the summation of weighted average of…

Q: Assume Tiger Corporation needs to raise in capital so it can expand its operational activities.…

A: THE WACC is the overall cost of the capital. It is the average of debt and equity cost components.…

Q: Company ABC is planning a $4,000,000 expansion this year. The expansion can be financed by issuing…

A: Earnings per share- Earnings per share (EPS) is a financial term that measures a company's ability…

Q: Jetpack Ltd. has an all equity capital structure. It has total assets worth $10 million, 10,000…

A: The proportionate share of each source of finance in the total capital of a company is known as its…

Q: The directors of Gamma plc are investigating the possibility of launching a new product line which…

A:

Q: Sand Key Development Company has a capital structure consisting of $20 million of 10% debt and $30…

A: When the earnings per share is the same when debt financing is used and when equity financing is…

Q: Light Speed plc requires £1,500,000 to fund a new project. The firm expects to earn an EBIT of…

A: The value of the company refers to the worth of the business that can be measured using the asset…

Q: Stamford Ltd has 4 million shares outstanding. The current share price is R15 per share. The beta…

A: Given Number of shares outstanding 4 million shares Current price of stock is R15 per share

Q: Jetpack Ltd. has an all equity capital structure. It has total assets worth $10 million, 10,000…

A: Leverage is a method to create add a potion of debt in the capital of a company, a leveraged capital…

Q: Camtek currently has assets of $25,000,000. Given the significant growth of the company's…

A: Long-term debt$10,000,000Preferred shares (150,000 shares)$5,000,000Common shares$8,000,000Profits…

Q: Cross Town Cookies is an all-equity firm with a total market value of $695,000. The firm has 46,000…

A: Market value of equity = $695,000Number of shares outstanding = 46,000Debt issued = $146,000The…

Q: my Shoes Inc. has 10,000 shares outstanding with a stock price of $40 per share. The current…

A: EPS (Earnings per share) is calculated as shown below.

Q: A totally equity financed company with 15 000 outstanding ordinary shares, each with a book value…

A: Tax Rate = 28% Sales = 600,000 Fixed Costs = 100,000 Variable Costs = 30%*Sales = 30%*600,000 =…

Q: AutoZone Tyre Ltd wants to expand its production capacity by investing R10 million in new plant and…

A: Weighted average cost of capital is the minimum expected rate of return that is required from a…

Q: andom Tools is currently an all-equity firm that has 7,200 shares of stock outstanding at a narket…

A: Share Repurchase:Share repurchase (also known as buy-back) refers to the decision of the firm to buy…

Q: Clayton Industries has the following account balances: Current assets Noncurrent assets $ 22,000…

A: Detailed explanation:Finance (Business Finance) Let's dive deeper into each part of the analysis to…

Q: A company with EBIT of $6,000,000 is considering two financing alternatives. The first alternative…

A: EBIT/EPS indifference point in part 4 will be (EBIT-interest in alternative1)*(1-tax)Number of…

Q: The Palantir is an all-equity firm with a total market value of $536,000 and 21,200 shares of stock…

A: Repurchase shares refer to a strategy that is being followed by the company for buying back its own…

Q: QUESTIONS: A. What is the weighted average cost of capital for Orange Ltd?  B. With reference to…

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

Q: Sand Key Development Company has a capital structure consisting of $20 million of 10% debt and $30…

A: When the earnings per share is the same when debt financing is used and when equity financing is…