1) Retained Earnings (average of CAPM, DCF, and bond yield risk premium approaches) Cash: 2,000,000 Accounts Receivable: 28,000,000 Inventories:…

1) Retained Earnings (average of CAPM, DCF, and bond yield risk premium approaches)Cash: 2,000,000Accounts Receivable: 28,000,000Inventories: 42,000,000Net Fixed Assets: 133,000,000Total Assets: 205,000,000Accounts Payable and Accruals: 18,000,000Notes Payable: 40,000,000Long-term debt: 60,000,000Preferred STock: 10,000,000Common Equity: 77,000,000Total Claims: 205,000,000* Last Year’s Sales were $225,000,000* The Company has 60,000 bonds with 30 yr life outstanding, with 15yrs until maturity. The bonds carry a 10% semi annual coupon and are currently selling for $874.78* You also have 100,000 shares of $100 par, 9% dividend perpetual preferred stock outstanding. The Current Market price is $90.00. Any new issues of preferred stock would incur $3.00 per share flotation cost.*The company has 10 million shares of common stock outstanding with a currently price of $14 per share. Stock exhibits constant growth rate of 10%. The last divident (Do) was $.80. New stock could be sold with flotation costs, including market pressure, of 15%.*Stockholders require a risk premium of 5% above the return on the firms bonds.*Firm doesn’t use Notes Payable for long-term financing*Firm’s Tax Rate is 40%* Firm’s dividend payout ratio is 50% and net profit margin was 8.89%””

Show more

Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more