Suppose a firm has 30.80 million shares of common stock outstanding at a price of $35.35 per share.  The firm also has 499000.00 bonds outstanding with a current price of $954.00. The outstanding bonds have yield to maturity 8.99%. The firm’s common stock beta is 1.88 and the corporate tax rate is 39.00%. The expected market return is 12.69% and the T-bill rate is 3.47%. Compute the following:  Weight of Equity of the firm: [a] Weight of Debt of the firm: [b] Cost of Equity of the firm: [c] After Tax Cost of Debt of the firm: [d] WACC for the Firm: [e]

There is a 42.20% probability of an average economy and a 57.80% probability of an above average economy.  You invest 23.80% of your money in Stock S and 76.20% of your money in Stock T.  In an average economy the expected returns for Stock S and Stock T are 14.90% and 14.20%, respectively.  In an above average economy the the expected returns for Stock S and T are 32.10% and 34.80%, respectively.  What is the expected return for this two stock portfolio?

There is a 14.80% probability of a below average economy and a 85.20% probability of an average economy.  If there is a below average economy stocks A and B will have returns of -2.80% and 4.10%, respectively.  If there is an average economy stocks A and B will have returns of 9.90% and 4.30%, respectively. Compute the: Expected Return for Stock A: [a] Expected Return for Stock B: [b] Standard Deviation for Stock A: [c] Standard Deviation for Stock B: [d]

Suppose a firm has 49.10 million shares of common stock outstanding at a price of $38.74 per share.  The firm also has 206000.00 bonds outstanding with a current price of $967.00. The outstanding bonds have yield to maturity 8.61%. The firm’s common stock beta is 1.19 and the corporate tax rate is 35.00%. The expected market return is 13.50% and the T-bill rate is 1.64%. Compute the following:  Weight of Equity of the firm: [a] Weight of Debt of the firm: [b] Cost of Equity of the firm: [c] After Tax Cost of Debt of the firm: [d] WACC for the Firm: [e]

There is a 19.70% probability of an average economy and a 80.30% probability of an above average economy.  You invest 26.10% of your money in Stock S and 73.90% of your money in Stock T.  In an average economy the expected returns for Stock S and Stock T are 6.10% and 6.70%, respectively.  In an above average economy the the expected returns for Stock S and T are 31.60% and 36.10%, respectively.  What is the expected return for this two stock portfolio?

Suppose a firm has 25.70 million shares of common stock outstanding at a price of $33.95 per share.  The firm also has 289000.00 bonds outstanding with a current price of $1,036.00. The outstanding bonds have yield to maturity 10.85%. The firm’s common stock beta is 0.96 and the corporate tax rate is 39.00%. The expected market return is 13.99% and the T-bill rate is 1.64%. Compute the following:  Weight of Equity of the firm: [a] Weight of Debt of the firm: [b] Cost of Equity of the firm: [c] After Tax Cost of Debt of the firm: [d] WACC for the Firm: [e]

Suppose a firm has 12.00 million shares of common stock outstanding at a price of $25.86 per share.  The firm also has 359000.00 bonds outstanding with a current price of $940.00. The outstanding bonds have yield to maturity 7.28%. The firm’s common stock beta is 2.32 and the corporate tax rate is 35.00%. The expected market return is 9.36% and the T-bill rate is 5.32%. Compute the following:  Weight of Equity of the firm: [a] Weight of Debt of the firm: [b] Cost of Equity of the firm: [c] After Tax Cost of Debt of the firm: [d] WACC for the Firm: [e]

Suppose a firm has 44.40 million shares of common stock outstanding at a price of $43.17 per share.  The firm also has 328000.00 bonds outstanding with a current price of $1,169.00. The outstanding bonds have yield to maturity 6.78%. The firm’s common stock beta is 0.82 and the corporate tax rate is 35.00%. The expected market return is 11.86% and the T-bill rate is 3.53%. Compute the following:  Weight of Equity of the firm: [a] Weight of Debt of the firm: [b] Cost of Equity of the firm: [c] After Tax Cost of Debt of the firm: [d] WACC for the Firm: [e]

There is a 23.20% probability of a below average economy and a 76.80% probability of an average economy.  If there is a below average economy stocks A and B will have returns of -9.20% and 11.70%, respectively.  If there is an average economy stocks A and B will have returns of 10.30% and 4.50%, respectively. Compute the: Expected Return for Stock A: [a] Expected Return for Stock B: [b] Standard Deviation for Stock A: [c] Standard Deviation for Stock B: [d]

When inputting an answer, round your answer to the nearest 4 decimal places. If you need to use a calculated number for further calculations, DO NOT round until after all calculations have been completed. For the final answer, Round to 4 decimal places unless otherwise stated. Assets Accounts 2021 2022 Cash $45.00 $50.00 A/R $342.00 $104.00 Inventory $252.00 $190.00 Total $639.00 $344.00 Net Fixed Assets $1,000.00 $1,200.00 Total Assets $1,639.00 $1,544.00 Liabilities Accounts 2021 2022 Accounts Payable $386.00 $241.00 Notes Payable $150.00 $125.00 Total $536.00 $366.00 Long-Term Debt $500.00 $750.00 Common Stock $400.00 $400.00 Retained Earnings $203.00 $28.00 Total Liabilities $1,639.00 $1,544.00 Sales Accounts 2021 2022 Sales   $2,607.00 Cost of Goods Sold   $2,085.60 Depreciation   $200.00 EBIT   $321.40 Interest   $40.00 Taxes   $128.56 Net Income   $152.84 Question Set 1 (2 points each, 18 points total) What is the Current Ratio for 2022? [1] What is the quick ratio for 2022? [2] What is the Times Interest Earned for 2022? [3] What is the Debt to Equity ratio for 2022? [4] What is the Profit Margin for 2022? Please share your final answer as a percentage rounded to 2 decimal places. [5] What is the Total Asset Turnover for 2022? [6] What is the Equity Multiplier for 2022? [7] What is the Return on Equity for 2022? Please share your final answer as a percentage rounded to 2 decimal places. [8] What is the Return on Assets (ROA) for 2022? Please share your final answer as a percentage rounded to 2 decimal places. [9]   Question Set 2 (2 points each, 16 points total) What is the Inventory Turnover? [10] What is the AR Turnover? [11] What is the AP Turnover? [12] What is the Inventory Period? [13] What is the AR Period? [14] What is the Operating Cycle? [15] What is the Cash Cycle? [16] What is Net Working Capital for 2022? Please share your answer as a dollar amount with 2 decimal places. [17]