The target capital structure for QM Industries is 45% common stock, 6% preferred stock, and 49% debt. If the cost of common equity for the firm is 17.9%, the cost of preferred stock is 10.6%, the before-tax cost of debt is 8.9%, and the firm’s tax rate is 35%, what is QM’s weighted average cost of capital? QM’s WAAC is _%? 2).(Weighted average cost of capital)Crypton Electronics has a capital structure consisting of 45% common stock and 55% debt. A debt issue of $1,000 par value, 6.1% bonds that
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Million (2014) Highlights of B/S 33% Investments 216% Cash Total Cost 9% ₹ 53111 Million (2013) ₹ 3654 Million (2014) 30% Receivables Secured Loan -15% PAT Secured Loan 53% ₹ 2393 Million (2013) -100% CASH FLOW ANALYSIS Britannia is concentrating more on investment than Nestle. ₹ 17964 Million (2014) Operating Activities 6% ₹ 16933 Million (2013) ₹ (9408) Million (2013) Decrease in cash outflow from Investing activities company is investing less Less expansion
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Venture The pros and cons to starting-up a business have been weighed. I do not have the money to start-up a business and neither the patience or time to see a business venture through. I weighed my options in starting a business: borrow money, sell stock, or license the technology. I have decided to license my technology. By doing this, I will have freed up my time and will not have to worry about incurring the expense in manufacturing, marketing, distributing, and selling a product. (Jackim, 2009)
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tobacco products which manage by using the conservative debt policy and high dividend payout. Since the firm has faced the decline of the growth from year 1993, the company decided to make the recapitalization by borrowing $1 billion to repurchase their stock in order to maximize the company’s value. By borrowing, interest charged on loan is tax-deductible which the firm can benefit from tax shield and can also reduce the cost of capital. With the combination of debt and equity financing, the company
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of Screening and Signaling’ 99 Riley – 2001 2 101 Harris & Raviv (1990) ‘Capital Structure and the Informational Role of Debt’ 106 Harris & Raviv (1990) 2 108 Harris & Raviv – 1990 3 109 Heinkel & Zechner (1990) ‘The Role of Debt and Preferred Stock as a Solution to Adverse Investment Incentives’
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[pic] Al-Azhar University - Gaza Faculty of Economics and Administrative Sciences Business Administration Department Financial Analysis For : [pic] Prepared by: Ahmed Al-Saqqa Ibrahem Al-Shanti Under the supervision of: Mr.. Nizar Naim 2010-2011 Introduction Microsoft Corporation is one of the largest companies in the field of software and information technology, noted in recent years, the performance
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Name: Nam Do Class: ACC 617 Instructor: Dr. Nancy Lankton Question 1 a. Independence from current/former executives The good Board of Directors should be independent from current/former executives to commit to high standards of corporate governance. There should have different Boards including the Board of Executives which is responsible for day-to-day activities and Board of Directors elected by the shareholders for supervising the Board of Executives. The Board of Directors holds the highest authority
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Corporate Finance 1 Group assignment (Version 1) Group assignment instructions The objective of the group assignment is to promote deep thinking on a selected range of topics and to develop your practical quantitative modelling skills. The assessment is a group assignment and should be performed in your allocated groups (usually between 4 and 6 people). Seeking assistance from anyone outside your group or providing assistance to any other group constitutes academic misconduct and will
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and lines of business. 1. Comparison of Ford’s financial statements for the past 3 years. Ratio Analysis A. Perform three year trend and ratio analysis for 2007, 2008, and 2009. Stock Price Analysis A. Research the company’s common stock price. 1. Research the S&P for the past five years. 2. Chart the price movement in the company’s common stock against the S&P movement. Conclusion Executive Summary Ford, General Motors, and Chrysler known
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FIN 6406 A Financial Ratio Quarterly Trend Analysis of : Wal-Mart WMT Listed on New York Stock Exchange Liquidity Liquidity ratio measures the financial health of the company for the payment of short term obligation. Current ration is a general and quick measure of liquidity it represents margin of safety or cushion available to creditors. It is the index of company’s financial stability, technical solvency and strength of working capital. Quick ratio eliminates the inventories from current
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