Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on May 19, 2024

I am calculating the cost of debt. Long term debt = 1,000,000 Short term debt = 100,000 Cash = 200,000 Long term yield = 7%

I am calculating the cost of debt.

Long term debt = 1,000,000

Short term debt = 100,000

Cash = 200,000

Long term yield = 7%

short term yield = 12%

Do i use net debt to calculate the cost of debt?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Applied Equity Analysis and Portfolio Management Tools to Analyze and Manage Your Stock Portfolio

Authors: Robert A.Weigand

1st edition

978-111863091, 1118630912, 978-1118630914

More Books

Students also viewed these Finance questions

Question

8.1. Dulles Electric Company buys 1 million tons of coal annually to burn at its power plant. The company wants to invest in a unit train that will haul coal from the mine to the power house, where...

Answered: 1 week ago

Question

1. Calculate the cost of each capital component, after-tax cost of debt, cost of preferred, and cost of equity with the DCF method and CAPM method. 2. What do you estimate the company?s WACC? Please...

Answered: 1 week ago

Question

6.1. Carbondale Company has the following credit policy 2/10, net 30. Carbondale also charges 1% per month interest on all accounts after 30 days. The following table shows the collection schedule of...

Answered: 1 week ago

Question

★★★★★

Consider a country that imports steel and exports automobiles. The value per unit of cars exported is measured in units of thousands of dollars per car by the random variable X. The value per unit of...

Answered: 1 week ago

Question

★★★★★

Mario Luongo and Bob Weaver both purchase the same stock for 100. One year later, the stock price is 110 and it pays a dividend of 5 per share. Weaver decides to buy another share at 110 (he does not...

Answered: 1 week ago

Question

★★★★★

Find the slope of the line through P and Q. P(-1, -4), Q(6, 0)

Answered: 1 week ago

Question

★★★★★

For each part of Exercise 8.68, determine whether or not ????1 is significantly different from 0 using ???? = 0.05.

Answered: 1 week ago

Question

★★★★★

On January 6, Aaron Co. sells merchandise on account to Foley Inc. for $9,200, terms 1/10, n/30. On January 16, Foley pays the amount due. Instructions Prepare the entries on Aaron Co.s books to...

Answered: 1 week ago

Question

★★★★★

Write in detail in two-three pages about the risk that the Insurance companies could encounter from the monetary policy, fiscal policy, and the instability in the interest rate (provide examples and...

Answered: 1 week ago

Question

★★★★★

During the first month of operations, the Banco Extrusion Inc, located in Ontario Canada, which specializes in auto component manufacturing completed the following transactions. Date 1 George Leblanc...

Answered: 1 week ago

Question

★★★★★

Fund accounting is used by governmental units with resources that must be: a) Composed of cash or cash equivalents. b) Segregated for the purpose of carrying on specific activities or attaining...

Answered: 1 week ago

Question

★★★★★

Simply put, it gave the impression that things were three times larger than they actually were. He improved the design of the telescope so that it could zoom in eight times and then thirty. The...

Answered: 1 week ago

Question

★★★★★

Makeup product (e.g. any one item such as eyeshadows, foundation etc. ) Hint: How will you obtain feedback about competitors' similar products? Use survey or other method for collecting customer...

Answered: 1 week ago

Question

★★★★★

During July, the following are given: Standard unit price 12.50 Standard Quantity Allowed for actual production 6,300 units Actual unit purchase price Quantity purchased and used for production...

Answered: 1 week ago

Question

★★★★★

An RFP is used for what type of procurement? Give an advantage and a disadvantage of the RFP process

Answered: 1 week ago

Question

★★★★★

You are the area manager of several starbucks and you make all of the decisions regarding land, building, and equipment. Additionally you are responsible for all of the profits of the starbucks in...

Answered: 1 week ago

Question

★★★★★

Rooney Company manufactures molded candles that are finished by hand. The company developed the following standards for a new line of drip candles. During Year 2, Rooney planned to produce 37,000...

Answered: 1 week ago

Question

★★★★★

Refer to the data for problem 13-36 regarding Long Beach Pharmaceutical Company. Required: Compute each division's residual income for the year under each of the following assumptions about the...

Answered: 1 week ago

Question

★★★★★

Consider a renewal process whose interarrival distribution F is a mixture of two exponentials. That is, F(x) = pe* + qe,q=1-p Compute the renewal function E[N(t)]. Hint Imagine that at each renewal a...

Answered: 1 week ago

Question

★★★★★

Consider the two-state Markov chain of Example 5.8(A), with X(0) = 0 (a) Compute Cov(X(s), X(y)) (b) Let S,(t) denote the occupation time of state 0 by t. Use (a) and (5.84) to compute Var(S(t)). = -

Answered: 1 week ago

Question

★★★★★

Let Y, X) X-1), i = 1,..., n + 1 where X(0) = 0, X(n + 1) = t, and X) = X(2) X() are the ordered values of a set of n independent uniform (0, 1) random variables. Argue that P{Y, y,, i = 1,.., n+1}...

Answered: 1 week ago

Previous Question Next Question