Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

You are the Genesis accountant and have taken a class recently in the financing. You agree to make a PowerPoint presentation of approximately 6 to 8 minutes by using the exs and information given below:

1. Debt: Jones Industries borrows $600,000 for 10 years with a yearly payment of $100,000. What is expected interest rate (cost of debt)?

2. Internal common stock: Jones Industries has a beta of 1.39. The risk free rate as measured by rate on short-term US Treasury bill is 3 percent, and the anticipated return on the whole market is 12 percent. Determine the expected rate of return on Jones’s stock (cost of equity). Here are the details:

Jones Total Assets                        $2,000,000
Long- & short-term debt               $600,000
Common internal stock equity        $400,000
New common stock equity             $1,000,000
Total liabilities & equity                  $2,000,000

Build up a 10–12-slide presentation in PowerPoint format. Perform your computation in an Excel spreadsheet. Cut and paste the computation in your presentation. comprise speaker’s notes to elucidate each point in detail.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91199

Have any Question? 


Related Questions in Basic Finance

What type of constraints may a client impose on a portfolio

What type of constraints may a client impose on a portfolio manager? If an investment in stock has a value of $3,000 at the beginning of the year and $3,500 at the end of the year, and paid a dividend of $250 at the end ...

1 how can a company effectively force conversion of a

1. How can a company effectively force conversion of a convertible security? 2. What is the preemptive right of common stockholders? In what type of company is the preemptive right important? Unimportant? 3. Why would a ...

Consider the context-free grammara give a leftmost

Consider the context-free grammar: a) Give a leftmost derivation for the string. b) Give a rightmost derivation for the string. c) Give a parse tree for the string. ! d) Is the grammar ambiguous or unambiguous? Justify y ...

Calculate the total lift force on the arctic hut shown

Calculate the total lift force on the Arctic hut shown below as a function of the location of the opening. The lift force results from the difference between the inside pressure and the outside pressure. Assume potential ...

An annual survey of first-year college students asks 270000

An annual survey of first-year college students asks 270,000 students about their attitudes on a variety of subjects. According to a recent survey, 54% of first-year students believe that abortion should be legal. Use a ...

Your firm is considering a new investment proposal and

Your firm is considering a new investment proposal and would like to calculate its weighted average cost of capital. To help in this, compute the cost of capital for the firm for the following: a. A bond that has a $1000 ...

1 in many industrialized countries the average inventory

1. In many industrialized countries, the average inventory turnover index is around 20 for dairy products and around five for household electrical appliances. Discuss these figures. 2. Consider a warehouse equipped with ...

Suppose that you wish to buy stock and protect yourself

Suppose that you wish to buy stock and protect yourself against a downside movement in its price. You consider both a covered call and a protective put. What factors will affect your decision? You have inherited some sto ...

Fortune magazine published a 1998 interview with peter

Fortune Magazine published a 1998 interview with Peter Drucker ("Peter Drucker Takes the Long View: The Original Management Guru shares his vision of the future with Fortune's Brent Schlender") where the following appear ...

Once researchers calculate a value for t they compare that

Once researchers calculate a value for t, they compare that calculated value to a critical value of t. What two pieces of information must be known in order to find the critical value of t in a table of critical values?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen