FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Debt-to-Equity ratio of the company is 0.6. In terms of equity, 80% is ordinary equity. Determine the weight of debt, ordinary equity and preference

The Debt-to-Equity ratio of the company is 0.6. In terms of equity, 80% is ordinary equity. Determine the weight of debt, ordinary equity and preference equity to be used in the calculation of the after tax WACC. (3 Marks) Please answer as a decimal to 4 decimal places.

Answers:

Weight DebtAnswer

Weight OrdinaryAnswer

Weight PreferenceAnswer

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

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

Financial Accounting and Reporting

Financial Accounting and Reporting

Authors: Barry Elliott, Jamie Elliott

18th edition

1292162406, 978-1292162409

More Books

Students also viewed these Accounting questions

Question

★★★★★
The following information is for the third quarter of this year: Planned Production 92,000 units Direct labor hours 506,800 DL hrs Fixed manufacturing overhead $205,000 Variable manufacturing...

Answered: 1 week ago

Question

★★★★★
5. The random variable X is said to be a discrete uniform random variable on the integers 1, 2,..., n if $$ P(X=i) = \frac{1}{n} $$ (i = 1, 2,..., n) For any nonnegative real number x, let Int(x)...

Answered: 1 week ago

Question

★★★★★
1. Letters and diaries in history.

Answered: 1 week ago

Question

★★★★★
Interpreting disclosures regarding long-lived assets Exhibit 9.8 presents a partial balance sheet for Hewlett-Packard Company (HP). a creator and manufacturer of computer hardware and software and...

Answered: 1 week ago

Question

★★★★★
If a network having address 1 3 7 . 6 5 . 1 7 6 . 0 2 0 is to be further subdivided into 7 6 subnets. Provide an answer to the following: ( Show Steps ) a . What is the maximum number of hosts that...

Answered: 1 week ago

Question

★★★★★
Due to COVID 19 situation, what are the impacts on the Pharmaceuticals sector/ industry in Bangladesh ? you have to discuss your views on the changes of share price, EPS, share volume, future...

Answered: 1 week ago

Question

★★★★★
Imagine your sister calls you and starts sharing the difficulty she is having at work with the team she is leading. Many members of her team are experiencing interpersonal conflict with each other...

Answered: 1 week ago

Question

★★★★★
Subject :- CREDIT & RISK MANAGEMENT Total Marks: 10 SEMESTER FALL 2021 CREDIT & RISK MANAGEMENT (FIN625) Assignment 2 - Due Date: February 22, 2022 Topic: COLLATERAL ABC bank is a well-established...

Answered: 1 week ago

Question

★★★★★
Portions of the financial statements for Parnell Company are provided below. PARNELL COMPANY Income Statement For the Year Ended December 31, 2024 ($ in thousands) Revenues and gains: Sales Gain on...

Answered: 1 week ago

Question

★★★★★
As CIO of BellyBig, a new chain of fast - food restaurants, you are responsible for setting up the information systems infrastructure. Brefly outline your vision for all the components of this...

Answered: 1 week ago

Question

★★★★★
Outdoor Equipment (OE) sells camping equipment. On December 1, the accounts receivable account had a balance of $50,000, the bad debt expense account had a balance of $0, and the allowance for...

Answered: 1 week ago

Question

★★★★★
Consider a uniform distribution from a = 3 to b = 24. (a) Find the probability that x lies between 6 and 16. (b) Find the probability that x lies between 10 and 17 Uniform Distribution (c) Find the...

Answered: 1 week ago

Question

★★★★★
5. Imagine a situation where you were really annoyed by someone elses behaviour. Try to find the positive intention behind the behaviour.

Answered: 1 week ago

Question

★★★★★
3. Imagine a communication situation at work or at home where you felt that you were locked (inflexible). Reflect on three alternative strategies that could have led to you becoming more flexible,...

Answered: 1 week ago

Question

★★★★★
4. In the next communication situation you are in, already think through three different communication strategies, which will make you achieve greater flexibility. Then practice on these as soon as...

Answered: 1 week ago

Previous Question Next Question