XYZ anticipates earning $1,500,000 and paying $300,000 in dividends this year. XYZ's capital structure is 20% debt and 80% equity and its tax rate is 35%.  Compute the equity breakpoint to the nearest dollar

Q: The management of Final Designs, Inc., or FinD, has decided that the optimal capital structure for…

A: Since asked only for number 3, the only answer of only 3 will be provided

Q: Flaherty Electric has a capital structure that consists of 70 percent equity and 30 percent debt.…

A: Weighted average cost of capital is the average cost of raising funds from various sources by the…

Q: Trident Corporation is currently worth $1,000,000. Its current debt-to-value (D/V) ratio is 40%. The…

A: 1. The market value of Trident Corporation would be $ 800,000 if it were unlevered. Vu = VL-T*D…

Q: The GIN Corp. is expected to pay a dividend of S3 which is expected to grow at 2% for a foreseeable…

A: WACC is the overall average cost of the all finance sources. It is equal to sum of product of cost…

Q: Lauryn’s Doll Co. had EBIT last year of $47 million, which is net of a depreciation expense of $4.7…

A: Given, EBIT $47 million Depreciation $4.7 million capital expenditures $7.25 million Net working…

Q: Dillon Labs has asked its financial manager to measure the cost of each specific type of capital as…

A: WACC is the weighted average cost of capital. It is the overall cost of capital which is used for…

Q: Blue Co. has a capital structure that consists of 25% equity and 75% liabilities.  The company…

A: Given information, Capital structure consists of 25% equity and 75% liabilities.  Net income…

Q: The management of Final Designs, Inc., or FinD, has decided that the optimal capital structure for…

A: The cost of capital is the cost paid by the issuer to the investor or holder of the security. It…

Q: TGN Corporation generated FCF of $1,200,000 in the most recently completed year.  FCF is expected to…

A: The free cash flow to the firm shows cash available to equity and debt provides after adjusting for…

Q: Lilly Inc has a DSO of 20 days, and its annual sales are $3,550,000. What is its accounts receivable…

A: (Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: The management of Final Designs, Inc., or FinD, has decided that the optimal capital structure for…

A: The cost of debt which is known as a kd in the terms of finance is the cost of purchasing the debt…

Q: XYZ anticipates earning $1,800,000 and paying $300,000 in dividends this year. XYZ's capital…

A: equity break point=retained earningfraction of equity

Q: the kosol co. can raise $200,000 by (1) selling 1,000 shares of common stock at $200 each or (2)…

A: Alternate 1: Debt = $200,000 Interest Rate = 7% Interest Amount = $200,000 × 7% = $14,000 Existing…

Q: Sand Key Development Company has a capital structure consisting of $20 million of 10% debt and $30…

A: Operating Income measures the amount of profit realized from a business’ operations, after deducting…

Q: Leon Inc. has the following capital structure, which it considers to be optimal: Debt  25%…

A: given, interest rate =12% tax rate = 25% Dividend last year(D0)=3.6 growth(g )=9% price of…

Q: Sandhill Co. has a capital structure, based on current market values, that consists of 35 percent…

A: Weight Average Cost Of capital  The weighted normal expense of capital (WACC) is a computation…

Q: Blue Co., a company with 25% tax rate, has a free cash flow of P150,000,000 for the next year and is…

A: FCF1 = P 150,000,000 Growth rate (g) = 4% Debt to equity (D/E) = 0.25 Cost of debt = Rd = 5% Cost of…

Q: Andover, Inc has the following capital structure: Assets $ 500,000 $ 125,000 Debt Preferred stock…

A: “Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the…

Q: Cost of Common Equity =  % Cost of Preferred Stock =  % Cost of Debt = %

A: Cost of equity is the rate which the company pays to equity shareholders for taking a risk. it is…

Q: Planet Express has liabilities of $400 and assets of $1000. The average YTM on its debt is 10% and…

A: FORMULA FOR WACC: WACC=WP×KP+WD×KD×1-TAX WHERE, WD=weight of debtwp=weight of preferred sharekd=cost…

Q: The ABC corp. is expected to have the earnings before interest and taxes of $60,000 and the…

A: EBIT= $60,000 Unlevered Cost of capital (Vu)= 12% Tax rate= 30% Debt value= $20,000 Annual coupon…

Q: Colbyco Industries Company has a target capital structure of 60 percent common equity, 30 percent…

A: Computation:

Q: A firm has total assets of $1,000,000 and a debt ratio of 30 percent. Currently, it has sales of…

A: Return on equity (ROE):It is a profitability measure that is related with the firm's equity. It is…

Q: Sorensen Systems Inc. is expected to pay a $2.00 dividend at year end (D1 = $2.00), the dividend is…

A: wacc formula is given as: WACC =wd×kd×1-tax+we×kewhere,wd= weight of debtwe= weight of equitykd=cost…

Q: Mama Inc. utilizes the residual dividend model to determine its ordinary dividend payout. This year…

A: Introduction Under Residual dividend policy the amount of dividends paid to the shareholders amount…

Q: National Inc. has forecasted that its net income will be P520,000. The company has an debt-to-equity…

A: debt-to-equity ratio of 25% means that for every one 1P invested in the company, about 25% come…

Q: HBM, Inc has the following capital structure: Assets $ 600,000   Debt $ 150,000         Preferred…

A: Weighted-average cost of capital is the average cost of capital can be calculated by multiplying the…

Q: XYZ anticipates eaming $1,800,000 and paying $300,000 in dividends this year. XYZ's capital…

A: Given:Anticipates earnings=$1800000Dividend=$300000Capital structure=20% debt and 80% equityTax…

Q: Grateway, Inc., has a weighted average cost of capital of 11.5 percent. Its target capital structure…

A: Given: Pre tax cost of debt =9.00%Tax rate =30%Capital structure: Equity =55%Capital structure: Debt…

Q: XYZ anticipates earning $1,000,000 and paying $200,000 in dividends this year. XYZ's capital…

A: Equity breakpoint is the financial term used to determine the breaking point after which the firm…

Q: It was reported last week that Blue Bell Enterprises earned $18.5 million this year. The report also…

A: Growth rate = Retention ration * Retrun of equity

Q: Gilbert and Sons is a leveraged firm, it has 300,000 shares of stock outstanding with a market price…

A: Computation of debt-equity ratio:

Q: Leon Inc. has the following capital structure, which it considers to be optimal: Debt  25%…

A: break point =available retained earningrequired equity weight

Q: Johnson Tire Distributors has debt with both a face and a market value of $90,000,000. This debt has…

A: given information   market value = 90,000,000  EBIT = 50,000,000 tax rate = 25% unleavered cost of…

Q: rage cost of capital. The weighted average cost is to be measured by using the following​ weights:…

A: Cost of debt is yield to maturity of the stock and after tax cost can be reduced for tax purpose.

Q: Munich Re Inc. is expected to pay a dividend of $4.82 in one year, which is expected to grow by 4% a…

A: The weighted average cost of capital or WACC is one of the important financial concepts that is used…

Q: Mullineaux Corporation has a target capital structure of 65 percent common stock and 35 percent…

A: WACC = Weight of equity * Cost of equity + Weight of debt * cost of debt * (1-tax rate)

Q: Bulldogs Inc. has forecasted that its net income will be P520,000. The company has an debt-to-…

A: Under residual model, amount of dividend paid to common stockholders is the balance of Net Income…

Q: Acme Inc. had net profits of $1,000,000 last year, has 100,000 shares outstanding and has maintained…

A: Net profit = $ 1,000,000 Number of shares = 100,000 Earning per share = 1,000,000/100,000 = $ 10…

Q: Blue Co. has a capital structure that consists of 25% equity and 75% liabilities.  The company…

A: The solution requires the application of residual dividend policy. Here, the retained earnings would…

Q: The management of Final Designs, Inc., or FinD, has decided that the optimal capital structure for…

A: The Weighted average cost of capital is the cost of each capital consider with their weights. The…

Q: The management of Final Designs, Inc., or FinD, has decided that the optimal capital structure for…

A:

Q: Steph & Sons has a capital structure that consists of 20 percent equity and 80 percent debt.  The…

A: In this we have to determine the retained earning that would be equity structure of target capital…

Q: The Gallagher Co. has a target capital structure of 65% debt and the remainder common equity.…

A: WACC(Weighted Avg. Cost of Capital) is average cost paid by company to finance their capital…