Calculate the debt-equity ITEM (in $ millions) Accounts Payable Long Term Debt Common Stock ($1 par) $4.6 Capital Surplus Retained Earnings O 0.44 O 0.28 3.54 ratio by using the information below. 2022 $1.42 $4.33 0.51 $8.47 $7.26 O None of these options are correct
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- Today is Jan. 1, 2019. Below is a Treasury Strip quote: Treasury Bond, Stripped Principal Maturity Bid Asked Change Ask Yield 2,022 Jan 1 ????? ????? -0.125 6.689 What is the Asked Quote? Do not round intermediate calculations. Round your answers to 3 decimal places. (e.g., 32.164))What is the CAPM required return for Stock Z, in decimal form? Round your answer to 4 decimal places (example: if your answer is .13579, you should enter .1358). Margin of error for correct responses: +/- .0005. expected return (implied by market price) Beta Stock Z 9.7% 1.43 MRP 6% ? T-bonds 5% ?H5. Which of the following is the name of the semiannual payment of $20 that you receive on a bond you own? a. Face Value b. Discount c. Yield d. Call Premium e. Coupon Explain with details and also explain wrong options
- What equation was used to get the Aftertax Cost of Debt? Debt Face Value 1000 Bond Price 1271.59 Coupon Payment 75 Maturity 50 Yield to Maturity 11.64% Aftertax Cost of Debt 9.31%When is it possible, the Stock price of a REIT to be $9 while its Net Present Value (NAV) to be $10?how Will long term bonds effect current ratio, acid test ratio, and debt to equity ratio? how will purchase inventory effect Current ratio, acid test ratio, debt to equity ratio? how will these effect the ratios mention above: retirement of bonds, sale of common stock, purchase of short-term investment for cash, and decision to refinance on a long term basis some currently maturing debt? ,
- Which of the following is an example of a money market instrument? (Select all that apply) a. 2-year Treasury Bond b. Certificate of Deposit C. Swap d. Stop-call) Which of the following provides the best estimate of the risk-free interest rate for the CAPM approach to estimating the cost of retained earnings? 30-day Treasury bill 10- or 30-year Treasury bond 30-year IBM bond 90-day Treasury bill none of the aboveANSWER AS MANY QUESTIONS POSSIBLE THIS IS A STUDY GUIDE Ch 11 Bonds and LTL1. When will bonds sell at a premium and discount? 2. Calculate bond interest under SL method.3. Impact of amortization of bond premium/discount on interest expense.4. Give an example journal entry for amortization of bond premium/discount.5. What is the Gain/loss on redemption of bonds? How do you calculate?6. Understand method of calculating PV of future cash flows -specifically for a bond.7. Why are bonds a popular source of financing?8. Contract rate (market rate) is used for what calculation purpose?Ch 10 SE: Corporations1. What are Rights possessed by common stockholders?2. What are a journal entries for stock issuance, cash dividend, stock dividend?3. What is the calculation of dividends when cumulative preferred stock is outstanding?4. Journal entries for treasury stock, financial statement presentation. Gain/loss on reissue of treasury stock.5. Prior period adjustment - example of, accounting for?6.…
- Explain why y0u disagree 0r agree with the f0ll0wing statements. The answer sh0uld n0t be m0re than 3 sentences (with reference of google links) Step 1 Define Treasusy BondS & Corporate Bonds Step 2 Difference between annuity due and ordinary annuity Step 3 Treasury b0nds are riskier than c0rp0rate b0nds. All 0ther things held c0nstant; the future value 0f an 0rdinary annuity is always having a higher future value than annuity due. All 0ther things held c0nstant, the price 0r interest rate risk 0f sh0rt-term b0nd is always l0wer than l0ng-term b0ndAstromet is financed entirely by common stock and has a beta of 1.20. The firm pays no taxes. The stock has a price-earnings multiple of 11.0 and is priced to offer a 10.9% expected return. The company decides to repurchase half the common stock and substitute an equal value of debt. Assume that the debt yields a risk-free 4.6%. Calculate the following: Required: a. The beta of the common stock after the refinancing b. The required return and risk premium on the common stock before the refinancing c. The required return and risk premium on the common stock after the refinancing d. The required return on the debt e. The required return on the company (i.e, stock and debt combined) after the refinancing If EBIT remains constant: f. What is the percentage increase in earnings per share after the refinancing? g-1. What is the new price-earnings multiple? g-2. Has anything happened to the stock price? Complete this question by entering your answers in the tabs below. Reg A to E Reg F to G2…Using Excel to Calculate Dilutive Earnings Per Share PROBLEM Oakridge Corporation has provided the information that follows related to its calculation of earnings per share for 2023. Its common shares and bonds were outstanding during the entire year. Net income Common shares outstanding Face value of convertible bonds Shares into which bonds can be converted Face rate of the bonds Tax rate $ 400,000 100,000 900,000 15,000 10% 25%