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all parts thank you TUULUU ( HU) (Weighted average cost of capital) Crawford Enterprises is a publicly held company located in Amold, Kansas. The firm

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TUULUU ( HU) (Weighted average cost of capital) Crawford Enterprises is a publicly held company located in Amold, Kansas. The firm began as a smaltool and de shop but grew over its 35-year ife to become a leading supplier of metal fabrication equipment used in the form tractor industry. At the close of 2019, the firm's balance sheet appeared as follow Al present the firm's common stock is selling for a price equal to its book value and the firm's bonde reelingut per Crawford's managers estimate that the market requires a retum of 15 percent on its common stock, the firm's bons command ayield to maurity of 7 percent, and the fem faces a tax rate of 23 percent What is Crawford's weighted average cost of capital? b. If Crawford's stock price were to rise such that sold at 15 times book value, causing the cost of equity to fall to 13 percent, what would the firm's cost of capital be assuming the cost of debt and tax rate do not change? Crawford is considering a new business opportunity involving the acquisition of a trucking fem. What do you think the firm should do to select an appropriate cost of capital for evaluating this acquisition? a. What is Crawford's weighted average cost of capital? O% (Round to two decimal places) ice equal to its book value, and the firm's bonds are selling at par. Crawford's managers estimate that the market requires a return of 15 pe tax rate of 23 percent tal? old at 1.5 times book value, causing the cost of equity to fall to 13 percent, what would the firm's cost of capital be (assuming the cost of de ity involving the acquisition of a trucking firm. What do you think the firm should do to select an appropriate cost of capital for evaluating thi tal? 1 Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) Cash $ 460,000 Accounts receivable 4,980,000 Inventories 8,400,000 Long-term debt Net property, plant, and equipment 18,883,000 Common equity $ 32,723,000 Total assets Total debt and equity $ 12,540,000 20,183,000 $ 32,723,000 Done click Check Answer. Clear All

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