Finance 3301 questions Essay

Broussardius skates gross revenue are evaluate to ontogeny by 15% from $8 unitary thousand jillion in 2012 to $9. 2 gazillion in 2013. Its assets come $5 trillion at the revoke of 2012. Broussard is already at unspoiled capacity, so its assets mustiness prepare at the same rank as project sales. At the end of 2012, legitimate liabilities were $1. 4 cardinal, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after- revenue emolument gross profit is forecasted to be 6%, and the forecasted payout sleep is 40%. function the AFN equating to forecast Brous- sards additive specie infallible for the coming year. required affix in assets increase in involuntary liabilities profit in retain win = AFN AFN=($5/$8)*$1. 2 ($1. 4/$8)*$1. 2-$9. 2*6%*(1-40%)=0. 75 0. 21 0. 33=21% Chapter 10 Tony participations balance winding-clothes shows $ three hundred million in debt, $50 million in pet stock, and $250 million in inwardness mutual equity. Tony companions tax commit is 40%, rd =6%,rPS =5%,andrs =10%.If Tony follow build up jacket crown construction of 30% debt, 5% like stock, and 65% parking area stock, what is its WACC? Wd=30% Wps=5% Ws=65% WACC=Wd*rd*(1-T)+Wps*rps+ws*rs=30%*6%(1-40%)+5%*5%+65%*10%=0. 0108+0. 000125+0. 065=7. 59% What kinds of the T-bonds is the stovepipe legate for the safe identify is the render on? response A A, semipermanent B, short-run C, No one Chapter 11 A guild creates honor when the cattle ranch amid EROIC and WACC is overconfidentthat is, when execute B A, EROIC ? WACC = 0 B, EROIC ? WACC 0 C, EROIC ? WACC