Business, 23.03.2020 21:29 itscheesycheedar
FCOJ, Inc., a prominent consumer products firm, is debating whether to convert its all-equity capital structure to one that is 30 percent debt. Currently, there are 5,000 shares outstanding, and the price per share is $86. EBIT is expected to remain at $26,000 per year forever. The interest rate on new debt is 4.5 percent, and there are no taxes.
a. Ms. Brown, a shareholder of the firm, owns 150 shares of stock. What is her cash flow under the current capital structure, assuming the firm has a dividend payout rate of 100 percent?
b. What will Ms. Brown’s cash flow be under the proposed capital structure of the firm? Assume that she keeps all 150 of her shares.
c. Assume that Ms. Brown unlevers her shares and re-creates the original capital structure. What is her cash flow now?
Answers: 3
Business, 21.06.2019 21:30, gokusupersaiyan12345
Afreezer manufacturer might purchase sheets of steel, wiring, shelving, and so forth, as part of its final product. this is an example of what sub-classification of business market?
Answers: 1
Business, 22.06.2019 08:50, sandram74691
Dyed-denim corporation is seeking to lower the costs of value creation and achieve a low-cost position. as a result, it plans to move its manufacturing plant from the u. s. to thailand, which based on company research, is the optimal location for production. this strategic move will most likely allow the company to realize
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Business, 22.06.2019 12:10, montgomerykarloxc24x
The cost of the beginning work in process inventory was comprised of $3,000 of direct materials, $10,000 of direct labor, and $10,000 of factory overhead. costs incurred during the period were comprised of $15,000 of direct materials costs, and $100,000 of conversion costs. the equivalent units of production (eup) for the period were 9,000 for direct materials and 6,000 for conversion. the costs per eup were:
Answers: 3
FCOJ, Inc., a prominent consumer products firm, is debating whether to convert its all-equity capita...
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