Need parts L-R done please. Please be thorough and include the timeline in part K. Explain everything please.

COMMON SIZED BALANCE SHEET Private company Assets: Current assets: Cash and cash equivalents Accounts receivable Inventories other Total current assets Long-term assets: Plant,property & equipment $ $ $ Global Partners LP (GLP) Armco Metals Empire Resources Holdings, Inc Inc. (ERS) (AMCO) 172,890 461,633 336,813 71,513 $ 912,000 $ 611,000 $ 5,425,000 $ $ 6,948,000 $ 1,658,000 $ 825,051 $ Less: accumulated depreciatio $ (315,000) $ other Total longterm assets $ Total assets $ Liabilities: Current liabilities: Notes payable $ Bonds payable $ Other current assets Total current liabilities $ Long-term liabilities: Long-term debt excluding curr $ other Total liabilities $ Equity: Common stock $ Retained earnings $ Other equity $ Total equity $ Total liabilities & equity $ $ 1,838,624 $ 1,345 $ 6,388 1,343,000 8,291,000 $ 2,663,675 $ 314,283 $ 52,822 829,000 $ 207,000 $ $ 1,036,000 $ 707,491 $ 707,491 $ ### ### 308,680 308,680 41,438 41,438 1,658,000 $ $ 2,694,000 $ 593,896 849,979 $ 2,151,366 $ $ - 51 308,731 $ - 186,000 5,411,000 5,597,000 8,291,000 512,309 512,309 2,663,675 117 $ $ 7,889 $ 5,552 $ 314,283 $ $ $ $ $ $ $ $ $ $ $ - 1,130 96,881 192,064 18,605 308,680 $ $ $ $ 1,885 43,203 9,154 2,831 13,870 4,258 $ 32,564 ### $ $ $ $ $ $ $ $ $ - 6 2,727 50,089 52,822 52,822 COMMON SIZED INCOME STATEMENT Sales COGS Gross profit SG&A(including marketing) EBIT Interest expense EBT Income taxes Net income Private company $ 3,648,000 $ 1,459,000 $ 2,189,000 $ 292,000 $ 1,897,000 $ 216,000 $ 1,681,000 $ 588,000 $ 1,093,000 Global Partners LP (GLP) Armco Metals Empire Resources Holdings, Inc Inc. (ERS) (AMCO) $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 17,269,954 16,725,167 544,787 358,031 186,756 47,764 138,992 963 138,029 521,736 498,881 22,855 14,519 8,336 6,000 2,336 1,075 1,261 $ $ $ $ $ $ $ $ $ 128,738 125,427 3,311 5,928 (2,617) 2,157 (4,774) 422 (5,196) Shares outstanding MULTI YEAR ROE DECOMPOSITION ROE=Net Income/Equity = (Net income/Pretax Income)* (Pretax Income/EBIT) * (EBI Private company Gross margin operating margin ROA Current Ratio Global Partners LP (GLP) Armco Metals Empire Resources Holdings, Inc Inc. (ERS) (AMCO) 0.19528 0.26943 0.22713 -0.09837 60.01% 29.96% 13.18% 6.71 3.15% 0.80% 5.18% 0.00 4.38% 0.24% 0.40% 1.00 2.57% -4.04% -9.84% 0.33 Gross margin represents the proportion of each dollar revenue that the company retains as gross profit from the above tab Private company retains the highest proportion of their revenues compared to the rest of the competitors standing at 60.0 and the general industry retaining 16.49% from the firms in the industry. operating margin measure the proportion of revenue that remains after paying various cost of production and determine t The higher the ratio the better position for it to satisfy creditors. Private company has a relatively high ratio and in much be Return on Assets is used to indicate how a company is profitable in relation to its assets. It gives investors a picture of how the ratio the more favorable it is. Like in this case Private company has the highest ROA (13.18) compared to the rest of the Current Ratio is a ratio used to determine whether a company is capabale of meeting its short term obligations using its sh obligation. Private company INC has the highest ratio though all companies range in the same level with industry average b These five public firms are comparable to the private firm because WACC = E/V * Re + D/V *Rd * (1-Tc) Where E = market value of firm's equity D = market value of firm's debt Re = Cost of equity Rd = Cost of debt Private company E/V Re D/V Rd 1-Tc WACC Global Partners LP (GLP) V=E+D E/V = percentage of equity finan D/V = percentage of debt financ Tc = Corporate tax rate Armco Metals Empire Resources Holdings, Inc Inc. (ERS) (AMCO) 0.10087 0.00 0.8991 0.1000 0.6502 0.46312 0.00 1.0000 0.1000 0.9931 1.00000 0.09 0.0000 0.1000 0.5398 1.00000 0.00 0.0000 0.1000 1.0884 5.85% 9.93% 9.21% 29.41% The use of the above scheme is important as it allows for efective comparison of the financial performance of the private c Additionally, we are able to know the company that is more stable from determining the capital structure. We are also able to tell the companies with heavy tax burden part c Firm's cost of debt Private company Bond yields Bond amount Bond payable Cost of debt $1,093,000.00 $1,658,000.00 $207,000.00 0.1248 Global Partners LP (GLP) $138,029.00 $593,896.00 $0.00 10.0000 Armco Metals Empire Resources Holdings, Inc Inc. (ERS) (AMCO) $1,261.00 $0.00 $0.00 10.0000 -$5,196.00 $0.00 $0.00 10.0000 A figure that would be used to improve the finding would be the already provided cost of debt. Bonds found per firm can be found adding total bond amount by the number of firms i.e total bond amount/Number of firm $ 511,516 Part d Private company Global Partners LP (GLP) Armco Metals Empire Resources Holdings, Inc Inc. (ERS) (AMCO) E/V Re D/V Rd 1-Tc 0.10087 0.00003 0.89913 0.10000 0.65021 0.46312 0.00000 1.00000 0.10000 0.99307 1.00000 0.09212 0.00000 0.10000 0.53981 1.00000 0.00000 0.00000 0.10000 1.08840 WACC 0.05847 0.09931 0.09212 0.29410 The beta is given by bE= {1 + (1-t)D / E} bUnlevered firm Hence Private company Global Partners LP (GLP) Armco Metals Empire Resources Holdings, Inc Inc. (ERS) (AMCO) (1-t)D (1-t)D /E 1+(1-t)D /E (Beta) 1078045.21118 5.79594 6.79594 589781.21751 0 1.00000 0.00000 0.00000 1.00000 0.00000 0.00000 1.00000 The ratios are as follows Private company Gross margin operating margin ROA Current Ratio Global Partners LP (GLP) Armco Metals Empire Resources Holdings, Inc Inc. (ERS) (AMCO) 0.19528 0.26943 0.22713 -0.09837 0.60005 0.29962 0.13183 6.70656 0.03155 0.00799 0.05182 0.00000 0.04381 0.00242 0.00401 1.00000 0.02572 -0.04036 -0.09837 0.33472 Part e The appropriate capital structure to use would be to increase the amount of debt financing while reducing the amount of e This is evidenced by the fact that the company uses aproximates 89.9% of debt in its capital structure while the amount of requirement of 70% debt and 30% equity financing. Part f Market risk premium = Expected return - Risk free rate Private company WACC Expected return Risk free rate Market risk premium 0.05847 0.13183 0.10000 0.03183 Global Partners LP (GLP) 0.09931 0.05182 0.10000 -0.04818 Armco Metals Empire Resources Holdings, Inc Inc. (ERS) (AMCO) 0.09212 0.00401 0.10000 -0.09599 0.29410 -0.09837 0.35000 -0.44837 Part g Private company E/V Re D/V Rd 0.10087 0.00003 0.89913 0.10000 Global Partners LP (GLP) 0.46312 0.00000 1.00000 0.10000 Armco Metals Empire Resources Holdings, Inc Inc. (ERS) (AMCO) 1.00000 0.09212 0.00000 0.10000 1.00000 0.00000 0.00000 0.10000 1-Tc 0.65021 0.99307 0.53981 1.08840 WACC 0.05847 0.09931 0.09212 0.29410 Part h Cost of equity Private company WACC Expected return Risk free rate Market risk premium Cost of equity 0.05847 0.13183 0.10000 0.03183 0.26 Global Partners LP (GLP) 0.09931 0.05182 0.10000 -0.04818 0.10 Armco Metals Empire Resources Holdings, Inc Inc. (ERS) (AMCO) 0.09212 0.00401 0.10000 -0.09599 0.01 0.29410 -0.09837 0.35000 -0.44837 -0.20 The cost of equity is not reasonable because they are quite small for some companies and huge for others. This can be att the some companies never had any debts and financing was purely from equity. part i Calculate the WACC for the firm Private company E/V Re D/V Rd 1-Tc WACC 0.10087 0.00003 0.89913 0.10000 0.65021 0.00000 5.85% From the above findings, it is true that the WACC is not quite reasonable since most of the financing is done by equity with This creates an undesired capital structure that a company should have basing on the recommended 30% equity and 70% d Part j Expanding into Brazil Assumptions include the fact that the company has its financing purely from debt and equity another assumption is that the cost of debt acrues from the bonds issued If the firm expands its operations, then the risk may be higher and more of the equity may be used in financing. Consequen In order to raise the wacc, then more sales need to be made to realize higher profits. The excess profits would be used to in part k The relevant cash flows for computing npv/irr include Cost of the project Upfront investment cost biannually Salvage value incremental revenue incremental expenses EET Huttig Building Products Inc. (HBP) Louisiana-Pacific Corp. (LPX) $ $ $ $ 532,700 153,500 229,800 34,300 $ $ $ $ $ 500 48,900 67,400 7,800 124,600 $ 917,800 $ 16,900 $ - ### $ 1,431,000 $ 16,500 $ 2,348,800 $ 158,000 $ $ $ $ 172,700 $ 172,700 $ ### ### 66,100 66,100 $ $ $ 754,800 $ 478,200 $ 1,233,000 $ 62,400 3,800 132,300 $ $ $ $ $ 152,800 812,300 150,700 1,115,800 2,348,800 200 (14,900) 40,400 25,700 158,000 $ $ $ $ $ MENT Louisiana-Pacific Corp. (LPX) Huttig Building Products Inc. (HBP) $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 1,934,800 1,757,800 177,000 157,000 20,000 29,800 (9,800) 27,200 (37,000) 623,700 501,100 122,600 114,300 8,300 2,500 5,800 5,800 averages E DECOMPOSITION tax Income/EBIT) * (EBIT/Sales) *(sales/Assets)* (Assets/Equity) Louisiana-Pacific Corp. (LPX) Huttig Building Products Inc. (HBP) -0.03316 0.22568 0.13100 9.15% -1.91% -1.58% 0.00 19.66% 0.93% 3.67% 1.89 16.49% 4.33% 1.84% 1.65438 rofit from the above table of ratios. petitors standing at 60.01% with the last being AMCO, INC at 2.57% duction and determine the ability of a company to satisfy its creditors. gh ratio and in much better postion since they are above the indurstry level. vestors a picture of how a company is converting their money to useful company assets,the higher mpared to the rest of the competitors and its above the industry average of 1.84. m obligations using its short-term assets, the higher the ratio the higher the chance of meeting its with industry average being lower which is unfavorable. ercentage of equity financing ercentage of debt financing porate tax rate Louisiana-Pacific Corp. (LPX) Huttig Building Products Inc. (HBP) 0.59649 0.00 0.8316 0.1000 3.7755 0.29171 0.15 0.9968 0.1000 1.0000 31.40% 14.20% 100.00% ormance of the private company with the public companies. Louisiana-Pacific Corp. (LPX) -$37,000.00 $754,800.00 $0.00 10.0000 Louisiana-Pacific Corp. (LPX) Huttig Building Products Inc. (HBP) $5,800.00 $62,400.00 $0.00 10.0000 Huttig Building Products Inc. (HBP) 0.59649 0.00000 0.83164 0.10000 3.77551 0.29171 0.14500 0.99681 0.10000 1.00000 0.31399 0.14198 Louisiana-Pacific Corp. (LPX) Huttig Building Products Inc. (HBP) TOTAL 1195894.00000 3069096.00000 207000.00000 50.12485 2849755.10204 18.65023 19.65023 Louisiana-Pacific Corp. (LPX) 62400.00000 312.00000 313.00000 Huttig Building Products Inc. (HBP) -0.03316 0.22568 0.09148 -0.01912 -0.01575 0.00000 0.19657 0.00930 0.03671 1.88502 educing the amount of equity financing. re while the amount of equity is only 10.01%. This is against the conventional Louisiana-Pacific Corp. (LPX) 0.31399 -0.01575 0.35000 -0.36575 Louisiana-Pacific Corp. (LPX) 0.59649 0.00000 0.83164 0.10000 Huttig Building Products Inc. (HBP) 0.14198 0.03671 0.35000 -0.31329 Huttig Building Products Inc. (HBP) 0.29171 0.14500 0.99681 0.10000 3.77551 1.00000 0.31399 0.14198 Louisiana-Pacific Corp. (LPX) 0.31399 -0.01575 0.35000 -0.36575 -0.03 Huttig Building Products Inc. (HBP) 0.14198 0.03671 0.35000 -0.31329 0.07 r others. This can be attributed to the fact that g is done by equity with little or no debt used by some companies. d 30% equity and 70% debt. 0.04 in financing. Consequently, the use of more equity and less debt will affect the capital structure ofits would be used to increase equity financing