• Company As balance sheet showed current assets of $5,000,000 and current liabilities of $3,000,000 before the following events.
  • The Company refinanced a note due in 3 months with another note due in 4 years. The amount of the note is $500,000
  • The Company determined that $200,000 of accounts receivable will have to be written off.
  • The Company leased a piece of equipment. The equipment cost $1,000,000 with annual equal payments of $50,000.
  • Goodwill of $100,000 was deemed to be impaired and was written off.

Compute working capital. Show calculations.

A Company is considering purchasing a piece of new equipment for $1,000,000. The equipment will reduce cost by $280,000 (assume the savings occurs at the end of the year) per year for 5 years. At that time the salvage value of the equipment is $50,000. Current cash inflow for is $1,200,000. The Company requires a 6% ROI.Assume: A Company has a targeted capital structure of 30% for debt, 10% for preferred stock and 60% for common equity. Before tax cost of debt is 11%, cost of preferred stock is 10.3% and the cost of common equity is 14.6%. A Companys tax rate is 40%

What is A Companys WACC? Show all calculations