Financial Reporting, Financial Statement Analysis and Valuation
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN: 9781285190907
Author: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher: Cengage Learning
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Need the below table filled out for Short-term debt %, Long-term debt $,%, Common equity $,% and Total capital $,%. Market Value Capital Structure Suppose the Schoof Company has this book value balance sheet:   Current assets   $30,000,000   Current liabilities   $20,000,000         Notes payable   10,000,000 Fixed assets   70,000,000   Long-term debt   30,000,000         Common stock (1 million shares)   1,000,000         Retained earnings   39,000,000 Total assets   $100,000,000   Total liabilities and equity   $100,000,000 The notes payable are to banks, and the interest rate on this debt is 11%, the same as the rate on new bank loans. These bank loans are not used for seasonal financing but instead are part of the company's permanent capital structure. The long-term debt consists of 30,000 bonds, each with a par value of $1,000, an annual coupon interest rate of 6%, and a 15-year maturity. The going rate of interest on new long-term debt, rd, is 12%, and this is the…
Ned assistance with Q3 and Q4 below? Cost of Equity The earnings, dividends, and stock price of Shelby Inc. are expected to grow at 6% per year in the future. Shelby's common stock sells for $21 per share, its last dividend was $1.00, and the company will pay a dividend of $1.06 at the end of the current year. Using the discounted cash flow approach, what is its cost of equity? Round your answer to two decimal places.  11.06 % If the firm's beta is 1.3, the risk-free rate is 8%, and the expected return on the market is 11%, then what would be the firm's cost of equity based on the CAPM approach? Round your answer to two decimal places.   11.90% If the firm's bonds earn a return of 9%, then what would be your estimate of rs using the own-bond-yield-plus-judgmental-risk-premium approach? (Hint: Use the mid-point of the risk premium range.) Round your answer to two decimal places.   % On the basis of the results of parts a–c, what would be your estimate of Shelby's cost of equity?…
What monthly compounded interest rate would Second National Bank need to pay on savings deposits to provide an effective rate of 6.2%?
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