The simplified balance sheet for the Dutch manufacturer Rensselaer Felt (figures in € thousands) is as follows:Cash and marketable2,200€Short-term debt€ 76,300securitiesAccounts receivable120,700Accounts payable62,700€ 139,000Inventory125,700€ 248,600Current liabilitiesCurrent assetsProperty, plant, andequipment212,700Long-term debt209,300Deferred taxes45,70088,300Other assetsShareholders' equity247,000Total€ 595,300€ 595,300TotalThe debt has just been refinanced at an interest rate of 4.25% (short term) and 6.25% (long term). The expected rate of return on thecompany's shares is 13.25%. There are 7.53 million shares outstanding, and the shares are trading at €53. The tax rate is 25%.Calculate this company's weighed-average cost of capital. (Do not round intermediate calculations. Enter your answer as a percentrounded to 2 decimal places.)Weighed-average cost of capital

The firm has three sources of capital:Short term debtLong term debtEquityWe need to estimate the…

Answered: The simplified balance sheet for the…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Monty Corp.’s comparative balance sheets are as follows. Monty Corp.Comparative Balance SheetsDecember 31 2022 2021 Cash $ 16,700 $ 17,500 Accounts receivable 25,100 22,300 Investments 19,850 15,850 Equipment 60,050 69,950 Accumulated depreciation—equipment (14,150 ) (10,100 ) Total $107,550 $115,500 Accounts payable $ 14,750 $ 11,150 Bonds payable 11,000 30,000 Common stock 49,900 45,300 Retained earnings 31,900 29,050 Total $107,550 $115,500 Additional information: 1. Net income was $18,250. Dividends declared and paid were $15,400. 2. Equipment which cost $9,900 and had accumulated depreciation of $2,000 was sold for $3,400. 3. No noncash investing and financing activities occurred during 2022. Prepare a statement of cash flows for…
Dallas and associates Total assets of $2.5 million Net plant and equipment equals $2 million notes payable $150000 Long term debt of $710000 Common total equity of $1.5 million The firm also has accounts payable and accruals of $100000 on its balance sheet What is the company’s total debt?
The balance sheet for Stuart Corporation follows: Current assets Long-term assets (net) Total assets Current liabilities Long-term liabilities Total liabilities Common stock and retained earnings Total liabilities and stockholders' equity Working capital Current ratio Debt-to-assets ratio Debt-to-equity ratio $ 94,000 1.7 $ Required Compute the following. (Round "Ratios" to 1 decimal place.) % 238,000 770,000 $1,008,000 $ 144,000 441,000 585,000 423,000 $1,008,000
Barger Corporation has the following data as of December 31, 2024: Total Stockholders' Equity Total Current Liabilities Total Current Assets $ 36,210 58,200 181,630 Other Assets Long-term Liabilities Property, Plant, and Equipment, Net Compute the debt to equity ratio at December 31, 2024. (Round your answer to two decimal places, X.XX.) = = C $? 45,600 269,640 Debt to equity ratio
Consider this simplified balance sheet for Geomorph Trading: Current assets $ 120 Current liabilities $ 70 Long-term assets 520 Long-term debt 270 Other liabilities 90 Equity 210 $ 640 $ 640 Required: What is the company’s debt-equity ratio? Note: Round your answer to 2 decimal places.
Ledger Properties of XYZ Itd has the following financlal information: Current Prior Year Year Revenues $18,915 $13,610 Administrative 2,106 1,602 expenses Interest expense 816 468 Cost of goods 9,715 6,309 sold Depreciation 408 387 Net fixed assets 12,711 11,984 Current liabilities 4,652 4,625 Common stock 5,000 4,000 Current assets 6,506 4,687 Long-term debt 2,200 ? Retained earnings 1365 246 Dividends paid 290 275 What is the cash flow of the firm for the current year if the tax rate is 12 percent? Select one:a. 1500 b. 2096 c. 25000
You find the following financial information about a company: net working capital = $7, 809; total assets $11,942; and long-term debt Multiple Choice $9, 115 $4, 507 $10, 339 $6, 129 $4, 133 = = = $1, 287; fixed assets $4,589. What is the company's total equity?
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)
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The current asset section of the Excalibur Tire Company’s balance sheet consists of cash, marketable securities, accounts receivable, and inventory. The balance sheet revealed the following: Inventory $ 1,010,000 Total assets $ 3,600,000 Current ratio 2.20 Acid-test ratio 1.20 Debt to equity ratio 1.5 Complete the Following 1. Current Assets 2. Shareholders Equity 3. Long-Term Assets 4. Long-Term Liabilites
Calculate the following ratios all are required 1-Receivables Turnover 2-Inventory Turnover 3-Payables Turnover 4-Debt-Equity Ratio 5-Debt Ratio Balance sheet Group Parent Company 31 December 2018 31 March 2018 31 December 2018 31 March 2018 Notes RO RO RO RO ASSETS Non-current Property, plant and equipment 5 6,406,433 7,113,759 3,683,610 4,182,275 Investment in subsidiaries - - 515,750 515,750 Fixed deposit 9.1 1,048,399 - 1,048,399 - Deferred tax assets 27 675,393 537,722 727,632 602,078 Non-current assets 8,130,225 7,651,481 5,975,391 5,300,103 Current Inventories 6 4,481,209 3,832,010 4,450,529 3,651,720 Trade and other receivables 7 3,771,104 3,502,574 3,244,883 2,758,158 Due from related parties 18 - - 351,897 2,439,914 Financial assets at…
What is the debt-to-asset ratio of Company B in 2022? What is the debt-to-equity ratio of Company A in 2021

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