Finance Question: What is Jacks weighted average cost of capital?
Finance
Question:
Jack’s Construction Co. has 80,000 bonds outstanding that are selling at par value. Bonds with similar characteristics are yielding 8.6 percent. The company also has 4 million shares of common stock outstanding. The stock has a beta of 1.1 and sells for $40 a share. The U.S. Treasury bill is yielding 4 percent and the market risk premium is 8 percent. Jack’s tax rate is 34 percent. What is Jack’s weighted average cost of capital? 11.47% 10.43% 10.10% 10.65% 11.39%
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Finance
Question:
doors Ltd purchases doors in bulk and resells them to the public. Last year the comapny had sales of R1 000 000. Each door is sold at R50. The company rents a shop that comes with a small warehouse at a locall mall. The financial manager of the company has estimated that it costs the company R5 per year to keep each door in storage based on the amount of space they have and rental costs. When the company places an order, it takes 11 days for their supplier to deliver new stock and the owner of the bussiness wishes to always keep atleast 100 doors in stock. The financial manager has also estimated that it costs the company R1 000 for each order they place a) Calculate the economic order quantity for Doors Ltd b)calculate the reorder point of the company c) A supplier offers he following credit terms:3/14 net 60. Calculate the cost of giving up the cash discount d) an organisation has a cash conversion cycle (CCC) of 45 days and an operating cycle of 75 days. what was the company’s average payment period.
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Finance
Question:
Calculate the traditional payback period, IRR, NPV, and PVI (present value index) for the project with the following cash flows. The opportunity cost of capital for the project is 14%. Year Cash Flows 0 -1,500,000 1 400,000 2 600,000 3 550,000 4 450,000 5 200,000 *For full credit please copy and paste any Excel tables you used to arrive at your answer. Clearly label each final answer ("Payback = XX.XX (to 2 decimal places), IRR = XX.XX% (% to two decimal places), NPV = XX.XX (to the nearest penny), PVI = XX.XX (to 2 decimal places) at the top of the answer box. For full credit paste all Excel tables and work below the final answers.
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Economics
Question:
1. Define GDP. Why is GDP growth important to any government? What is the difference between real and nominal GDP? 2. What is inflation? What do we mean by real income and nominal income? Who benefits/loses during inflationary period?
