9-15 was 12 percent. What are the firm's capital structure weights (that is, the proportionsof financing that came from debt and equity)?9-15. (Weighted average cost of capital) Crawford Enterprises is a publicly held com-pany located in Arnold, Kansas. The firm began as a small tool and die shop butgrew over its 35-year life to become a leading supplier of metal fabrication equip-ment used in the farm tractor industry. At the close of 2019 the firm's balance sheetappeared as follows:

Answer :(a.)Calculation of Crawford Weighted Average Cost of Capital (WACC)WACC = (Cost of Equity *…

Answered: was 12 percent. What are the firm's…

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter10: Liabilities: Current, Installment Notes, And Contingencies

Section: Chapter Questions

Problem 4MAD: Neiman Marcus Group (NMG) is one of the largest luxury fashion retailers in the world. Kohls...

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Company XYZ Ltd.is a manufacturer of house hold items and is working in this sector since last 80 years. This company has total assets of 110 million Rupees. The company’s accounting information indicates that these assets are financed with 60% debt and 40% equity. The company has adopted different ways to generate capital. Both preferred and common stocks are issued by the company, also different types of bonds are sold by this company to accomplish capital requirements. Furthermore loan from financial institutions has also been taken by the company for 60 million Rupees.Due to prevailing situation of Covid-19 pandemic, the company is facing decline in sales. The management of company is working to control this loss in order to keep their operations smooth. For this purpose company has hired two analysts from market whose major duty is to propose plans to control cost for company. As the company has generating funds by issuance of Coupon bonds with 9 year maturity period. The coupon…
Company XYZ Ltd.is a manufacturer of house hold items and is working in this sector since last 80 years. This company has total assets of 110 million Rupees. The company’s accounting information indicates that these assets are financed with 60% debt and 40% equity. The company has adopted different ways to generate capital. Both preferred and common stocks are issued by the company, also different types of bonds are sold by this company to accomplish capital requirements. Furthermore loan from financial institutions has also been taken by the company for 60 million Rupees.Due to prevailing situation of Covid-19 pandemic, the company is facing decline in sales. The management of company is working to control this loss in order to keep their operations smooth. For this purpose company has hired two analysts from market whose major duty is to propose plans to control cost for company. As the company has generating funds by issuance of Coupon bonds with 9 year maturity period. The coupon…
Company XYZ Ltd.is a manufacturer of house hold items and is working in this sector since last 80 years. This company has total assets of 110 million Rupees. The company’s accounting information indicates that these assets are financed with 60% debt and 40% equity. The company has adopted different ways to generate capital. Both preferred and common stocks are issued by the company, also different types of bonds are sold by this company to accomplish capital requirements. Furthermore loan from financial institutions has also been taken by the company for 60 million Rupees.Due to prevailing situation of Covid-19 pandemic, the company is facing decline in sales. The management of company is working to control this loss in order to keep their operations smooth. For this purpose company has hired two analysts from market whose major duty is to propose plans to control cost for company. As the company has generating funds by issuance of Coupon bonds with 9 year maturity period. The coupon…
Assume that you have been hired as a consultant by CGT, a major producer of chemicals and plastics, including plastic grocery bags, styrofoam cups, and fertilizers, to estimate the firm's weighted average cost of capital. The balance sheet and some other information are provided below. Assets Current assets Net plant, property, and equipment Total assets Liabilities and Equity Accounts payable Accruals Current liabilities Long-term debt (40,000 bonds, $1,000 par value) Total liabilities Common stock (10,000,000 shares) Retained earnings Total shareholders' equity Total liabilities and shareholders' equity b. 15.88% The stock is currently selling for $23.35 per share, and its noncallable $1,000.00 par value, 25-year, 12.00% bonds with semiannual payments are selling for $912.28. The beta is 1.08, the yield on a 6-month Treasury bill is 4.00%, and the yield on a 25-year Treasury bond is 6.00%. The required return on the stock market is 12.00%, but the market has had an average annual…
Assume that you have been hired as a consultant by CGT, a major producer of chemicals and plastics, including plastic grocery bags, styrofoam cups, and fertilizers, to estimate the firm's weighted average cost of capital. The balance sheet and some other information are provided below. Assets Current Assets Net, plant, property, and equipment Total assets $ $ $ Liabilities and Equity Accounts payable Accruals Current Liabilities Long-term debt (40,000 bonds, $1,000 par valu $ Total liabilities $ Common stock (10,000,000 shares) $ Retained earnings Total shareholders equity Total liabilities and shareholder's equity $ $ $ $ $ $ 38,000,000 101,000,000 139,000,000 10,000,000 9,000,000 19,000,000 40,000,000 59,000,000 30,000,000 50,000,000 80,000,000 139,000,000 The Stock is currently selling $15.25 per share, and its noncallable $1000 par value, 20 year, 7.25% bonds semiannual payments are selling for $875. The beta is 1.25, the yield on a 6-month treasury bill is 3.50% and the yield on a…
The caraway seed company grows heirloom tomatoes and sells their seeds. The heirloom tomatoes plants are preferred by many growers for their superior flavor. At the end of the most recent year the firm had current assets of $49,000, net fixed assets of $248,200, current liabilities of $28,100, and long-term debt of $101,000. A. Calculate caraways stockholder’s equity Caraway’s stockholder’s equity is Round to the nearest dollar. B. What is the firm’s net working capital? C. If caraway’s current liabilities consist of $20,100 in accounts payable and $8,000 in short term debt ( notes payable), what is the firm’s net working capital?
1. Assume that you have been hired as a consultant by CGT, a major producer of chemicals and plastics, including plastic grocery bags, styrofoam cups, and fertilizers, to estimate the firm's weighted average cost of capital. The balance sheet and some other information are provided below. Assets Current assets $ 38,000,000 Net plant, property, and equipment 101,000,000 Total assets $139,000,000 Liabilities and Equity Accounts payable $ 10,000,000 Accruals 9,000,000 Current liabilities $ 19,000,000 Long - term debt (40, 000 bonds, $1,000 par value) 40,000,000 Total liabilities $ 59,000,000 Common stock (10,000,000 shares) 30, 000, 000 Retained earnings 50, 000, 000 Total shareholders' equity 80,000,000 Total liabilities and shareholders' equity $139, 000, 000 The stock is currently selling for $15.25 per share, and its noncallable $1,000 par value, 20 - year, 7.25% bonds with semiannual payments are selling for $ 875.00. The beta is 1.25, the yield on a 6-month Treasury bill is 3.50%,…
The Caraway Seed Company grows heirloom tomatoes and sells their seeds. The heirloom tomato plants are preferred by many growers for their superior flavor. At the end of the most recent year, the firm had current assets of $51,700, net fixed assets of $249,800, current liabilities of $30,900, and long-term debt of $98,500. A) Calculate Caraway's stockholders' equity. B) What is the firm's net working capital? C) If Caraway's current liabilities consist of $21,900 in accounts payable and $9,000 in short-term debt (notes payable), what is the firm's net working capital?
Green Inc is involved in the business of manufacturing of plastic products which are used in houses and corporate offices. Green Inc. has current assets of $1,000,000, current liabilities of $500,000, fixed assets of $1,750,000, long term debt of $1,000,000, net sales of $3,000,000, equity multiplier of 2.20, and net income of $100,000. Compute debt to equity ratio for Green Inc
A financial analyst is in the process of estimating the cost of capital of Gewicht GmbH. The following informnation is obtained from the company web pages. Market value of debt: $50 million • Market value of equity: $600 million Table 1. Primary competitors and capital structures (in millions) Market value of Market value of Competitor debt equity A $25 $50 B $101 $190 C $40 $60 QUESTIONS: What are Gewicht GmbH target capital structure (DV and E/V) if the analyst uses current capital structure? und numberto four decimalpla to report the results Options: 0.4213 0.4921 0,4545 0,5454 D/V v EN
The Caraway Seed Company grows heirloom tomatoes and sells their seeds. The heirloom tomato plants are preferred by many growers for their superior flavor. At the end of the most recent year the firm had current assets of 48,500 , net fixed assets of $249,500, current liabilities of 28,500 , and long-term debt of 98,200 . a. Calculate Caraway's stockholders' equity. b. What is thefirm's net working capital? c. If Caraway's current liabilities consist of 18,700 in accounts.. Answer is $170,800 Question: What is the firm's net working capital? The firm's net working capital is $ enter your response here.
What is the net income for this firm? General accounting

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