give formula or example or info
6. Determine optimal capital structure. Given a specific level of capitalization (debt and equity), and different levels of debt, calculate the debt/ capitalization ratio and debt to equity ratio. You would be given the various levels of cost of debt for each level of debt. - Using the Hamada equation, calculate the leveraged beta and cost of equity for each debt level. Once cost of equity is found, you can calculate the WACC for each level of debt. Choose the OPTIMAL CAPITAL STRUCTURE 7. Calculate the dividend yield and the dividend payout ratio and the Residual Dividend Model. 8. Calculate the cash conversion cycle. I would provide you with inventory turnover ratio and payables deferable period formula for this calculation 9. Exchange Rate and hedging- exporter and importer- what are they (specifically) protecting against? Importer who pays in foreign currency and an exporter who receives foreign current. Forward contract- 'enter in a forward contract to buy/ sell foreign currency. 10. Yield to Maturity- which bond would you choose given various coupon payments and maturities, but identical risk ratings. 11. Calculate PV, FV and PMT of both a lump sum and annuity. 6. Determine optimal capital structure. Given a specific level of capitalization (debt and equity), and different levels of debt, calculate the debt/ capitalization ratio and debt to equity ratio. You would be given the various levels of cost of debt for each level of debt. - Using the Hamada equation, calculate the leveraged beta and cost of equity for each debt level. Once cost of equity is found, you can calculate the WACC for each level of debt. Choose the OPTIMAL CAPITAL STRUCTURE 7. Calculate the dividend yield and the dividend payout ratio and the Residual Dividend Model. 8. Calculate the cash conversion cycle. I would provide you with inventory turnover ratio and payables deferable period formula for this calculation 9. Exchange Rate and hedging- exporter and importer- what are they (specifically) protecting against? Importer who pays in foreign currency and an exporter who receives foreign current. Forward contract- 'enter in a forward contract to buy/ sell foreign currency. 10. Yield to Maturity- which bond would you choose given various coupon payments and maturities, but identical risk ratings. 11. Calculate PV, FV and PMT of both a lump sum and annuity