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I am requesting a tutor with a STRONG Finance background who knows how to access the proper information and complete the assignment.For someone experienced, this
I am requesting a tutor with a STRONG Finance background who knows how to access the proper information and complete the assignment.For someone experienced, this should be easy. PLEASE do not accept this if you cannot solve the questions accurately. I will not approved the charge if the numbers don't correspond. Am not really good in solving mathematics problems and that's why I needs the help. Again please don't accept this assignment if you are good in FIN 370 Calculations!!! Thank you
Question 1 The Walgreen Corporation is contemplating a new investment that it plans to finance using one third debt. The firm can sell new $1,000 par value bonds with a 15 year maturity at a price of $945 that carry a coupon interest rate of 13.1 percent that is paid semiannually. If the company is in a 34 percent tax bracket, what is the after tax cost of capital to Walgreens for the bonds? Question 2 Compute the cost of the capital for the firm for the following: A bond that has a $1,000 par value (face value) and a contract or coupon interest rate of 11.9%. Interest rates is $59.50 and are paid in semiannually the bonds have a current market value of $1,125 and will mature in 10 years. The firm's marginal tax rate is 34%. b. A new common stock issue that paid a $1.78 dividend last year. The firm's dividends are expected to continue to grow at 7.1% forever. The price of the firm's common stock is now $27.83 c. A preferred stock that sells for $148, pays a dividend of 8.2% and has a $100 per value. d. A bond selling to yield 12.3% where the firms tax rate is 34%. What is the after tax cost of debt? What is the cost of common equity? What is the cost of preferred stock? What is the after tax cost of debt? All these answers must be round to 2 decimal places. Question 3 Gillian Stationery Corporation needs to raise $600,000 to improve its manufacturing plant. It Decide to issue a $1,000 par value bond with a 8% annual coupon rate and a 10-year maturity. If the investors require a 10% rate of return: a. Compute the market value of the bonds. (round to d nearest cent). B. What will the net price be if flotation costs are 11.5% of the market price? (round to the nearest integer) C. How many bonds will the firm have to issue to receive the needed funds? (round to 2 decimal places) Question 4 As a consultant to GBH skiwear, you have been ask to compute the appropriate discount rate to use to evalute the purchase of a new warehouse facility. You have determined the market value of the firm's capital structure as follows: Source of Capital Market Value Bonds $530,000 Preferred Stock $120,000 Common Stock $450,000 To finance the purchase, GBH will sell 20 year bonds with a $1000 per value paying 8.3 per year (paid semiannually) at the market price of $961. Preferred stock paying a $2.51dividend can be sold for $35.86 Common stock for GBH is currently selling for $50.06 per share. The firm paid a $3.97 dividend last year and expects dividends to continue growing at a rate of 4.5%per year. The firm's marginal tax rate is 34%. What discount rate should you use to evaluate the warehouse projects? Find the A. The weight of the preferred stock in the firm's capital structure. (2 decimal places) B. the weight of common stock in the firm's capital structure (2 decimal places) C. Calculate component costs of capital D. The after tax cost of debt for the firm (2 decimal places) E. The cost of preferred stock for the firm (2 decimal place) F. The cost of common equity for the firm (2 decimal place) G. Calculate the firms; weighted average cost of capital H. The discount rate to evaluate the warehouse project (3 decimal place) Question 5 Dharma Supply has earnings before interest and taxes (EBIT) of $545,000, interest expenses of $331,000 and faces a corporate tax rate of 36 percent. a. What is Dharma Supply's Net Income? b. what would dharmas net income be if it didnt have any debt? (round to the nearest dollar) c. what are the firms interest tax savings? (round to the nearest dollar) Question 6 the expected return for the general market is 11.5 percent, and the risk premium in the market is 7.8 percent. Tasaco, LBM, and Exxos have betas of 0.813, 0.616, and 0.518, respectively. What are the appropriate expected rates of return for the three securities? A. What is the appropriate expected return of Tasaco? B. What is the expected return of LBM? C. What is the appropriate expected return of Exxco. All Answers must be in 2 decimal places Question 7 James Fromholtz is considering whether to invest in a newly formed investment fun. The funds investment objective is to acquire home mortgage securities at what it hopes will be bargain prices. The fund sponsor has suggested to James that the funds performance will hinge on how the national economy performs in the coming year. Specifically, he suggested the following possible outcomes: State of Economy Probability Fund Returns Rapid expansion and recovery 10% 100% Modest growth 35% 45% Continued recession 10% 100% Falls A.) Based on these potential outcomes, what is your estimate of the expected rate of return from this investment opportunity? B.) Calculate the standard deviation in the anticipated returns found in part aStep by Step Solution
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