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please help with all parts A-C (Weighted average cost of capita) Crawford Enterprises is a publicly held company located in Arnold, Kansas. The firm began
please help with all parts A-C
(Weighted average cost of capita) Crawford Enterprises is a publicly held company located in Arnold, Kansas. The firm began as a small tool and die shop but grew over its 35-year life to become a leading supplier of metal fabrication equipment used in the farm tractor industry. At the close of 2019, the firm's balance sheet appeared as follows: At present the firm's common stock is selling for a price equal to its book value, and the firm's bonds are selling at par. Crawford's managers estimate that the market requires a return of 18 percent on its common stock, the firm's bonds command a yield to maturity of 8 percent, and the firm faces a tax rate of 21 percent a. What is Crawford's weighted average cost of capital? b. If Crawford's stock price were to rise such that it sold at 1.5 times book value, causing the cost of equity to fall to 16 percent, what would the firm's cost of capital be (assuming the cost of debt and tax rate do not change)? c.Crawford is considering a new business opportunity involving the acquisition of a trucking firm. What do you think the firm should do to select an appropriate cost of capital for evaluating this acquisition? a. What is Crawford's weighted average cost of capital? % (Round to two decimal places) -X (Weighted average cost of capta) Crawford Enterprises is a publicly held company located in Amold, Kansas. The firm began as a small tool and die shop but grew over its 35-year life to become a leading supplier of metal fabrication equipment used in the farm tractor industry. At the close of 2019, the firm's balance sheet appeared as follows: At present the firm's common pot requires a return of 18 percent on its common stoc a. What is Crawford's weigh Data table b. If Crawford's stock price i be (assuming the cost of debt and tax rate do not cha c. Crawford is considering this acquisition? Click on the following icon in order to copy its contents into a spreadsheet) st of capital for evaluating Cash S70,000 Accounts receivable 4.720,000 Inventories 7,600,000 a. What is Crawford's weigh Long-term debe $ 11,590,000 18.455,000 0% (Round to two decine 19.755.000 Not property, plant and equipment Common equity Total assets $ 31.345.000 $ 31,345.000 Total debt and equity Dono Step by Step Solution
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