Use the following information for TGC Inc. to determine, Ws, the weight of common stock in...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Use the following information for TGC Inc. to determine, Ws, the weight of common stock in the firm's WACC: Number outstanding # 525,000 3.2 million Price per bond/share $ 1,075 31.25 5.66% O 55.67% O 87,97% Bonds Preferred Shares Common Shares Ⓒ 61.73% 3.43% 27.25 million 39.33 Use the following information for TGC Inc. to determine, Ws, the weight of common stock in the firm's WACC: Number outstanding # 525,000 3.2 million Price per bond/share $ 1,075 31.25 5.66% O 55.67% O 87,97% Bonds Preferred Shares Common Shares Ⓒ 61.73% 3.43% 27.25 million 39.33
Expert Answer:
Answer rating: 100% (QA)
Calculation of total value of firm Category Number of ... View the full answer
Related Book For
Financial Accounting: A Business Process Approach
ISBN: 978-0136115274
3rd edition
Authors: Jane L. Reimers
Posted Date:
Students also viewed these finance questions
-
Use the following information for questions 1, 2, and 3. Bartell Inc., a U.S. company, acquired 90 percent of the common stock of a Malaysian company on January 1, 20X5, for $160,000. The net assets...
-
Use the following information for The Windshield Pro, a retail merchandiser of auto windshields, to compute the cost of goods sold: Web Site Maintenance.......$ 7,000 Delivery Expense......... 800...
-
Use the following information for a firm. Target capital structure = 40% debt and 60% equity Cost of debt = 8% Cost of equity = 12% Tax rate = 40% 1) Find the firm's WACC. 2) As a manager, you...
-
The Black Sheep Inc.'s call option has the following characteristics: Exercise price of The Black Sheep Inc.'s call option ($) 75 Annualized risk-free rate 4.5% Time to the expiration of the options...
-
Partial operating data for Brent Cross Company follow. Management has set the predetermined overhead rate for the current year at 90 percent of direct labor costs. Account/Transition December...
-
Small businesses are the ones that suffered the most during the pandemic and the recovery is still hard and slow. According to the study, among the different challenges for survival are marketing and...
-
What is the difference between an ectotherm and an endotherm? Which vertebrates are ectotherms, and which are endotherms?
-
1. In your own words, summarize the dealer-broker record retention requirements. 2. Reread the SECs 2003 interpretation. In your own words, explain the difference between integrated hardware and...
-
< On January 22, Jefferson County Rocks Inc., a marble contractor, issued for cash 230,000 shares of $20 par common stock at $25, and on February 27, it issued for cash 12,000 shares of preferred...
-
Diana and Ryan Workman were married on January 1 of last year. Diana has an eight-year-old son, Jorge, from her previous marriage. Ryan works as a computer programmer at Datafile Inc. (DI) earning a...
-
Megaware, Incorporated is a technology firm that was founded eight years ago by John Thompson and Jill Dillman. Megaware manufactures various hardware and software components. Its products are used...
-
Robin, age 23, is an employee participant of a 401(k) profit sharing plan sponsored by DL, LLC that is not top heavy. She has been an employee since her 19th birthday. DLs's plan uses the standard 21...
-
In what ways could individuals, communities, or societies experience adverse consequences as a result of misinformation or insufficient information disseminated through media channels?
-
How might we design this study of depression and relationships? Which statistical tests do we use for which designs? What are our independent and dependent variables? What kind of variables are they...
-
In recent years, countries like Vietnam and Malaysia have become more eco-conscious, attempting to reduce their industrial impact on the environment. As such, textile manufacturing has been...
-
why and how environmental regulation and technological innovation are complementary ?
-
Suppose this year your abundance estimate is 205 with a 95% confidence interval of 118 233. Next year you do another mark recapture study and get an estimated population size of 173 with a 95%...
-
Suppose you need to answer any four of seven essay questions on a history test and you can answer them in any order. a. How many different question combinations are possible? b. What is the...
-
A machine cost $235,000 and had accumulated depreciation of $200,000 when it was sold for a loss of $10,000. It was a cash sale. How much cash did the company collect for the sale and how would it be...
-
What is the difference between a purchase return and a purchase allowance? What is the effect of purchase returns and allowances on the overall cost of inventory to the buyer?
-
Ratio analysis. (LO3). Hudson Coffee Shops reported the following for the two most recent fiscal years: Calculate the following for the year ended December 31, 2010: 1. Current ratio 2. Accounts...
-
If \(X\) is a positive random variable, prove that its negative moments are given by, for \(r>0\) : (a) \(\quad \mathbb{E}\left(X^{-r} ight)=\frac{1}{\Gamma(r)} \int_{0}^{\infty} t^{r-1}...
-
Let \(X \stackrel{\text { law }}{=} \mathcal{N}\left(m, \sigma^{2} ight)\) and \(\lambda>0\). Prove that \[\mathbb{E}\left(e^{-\lambda X^{2}} ight)=\frac{1}{\sqrt{1+2 \lambda \sigma^{2}}} \exp...
-
Chi-squared Law. A noncentral chi-squared law \(\chi^{2}(\delta, \alpha)\) with \(\delta\) degrees of freedom and noncentrality parameter \(\alpha\) has the density \[\begin{aligned}f(x ; \delta,...
Study smarter with the SolutionInn App