Skip to main content

Here are the instructions: Assignment 2: Cost of Debt and Equity The manager of Sensible Essentials conducted an excellent seminar explaining debt and equity financing and how firms should analyze their cost of capital. Nevertheless, the guidelines failed to fully demonstrate the essence of the cost of debt and equity,

By
Here are the instructions:

Assignment 2: Cost of Debt and Equity

The manager of Sensible Essentials conducted an excellent seminar explaining debt and equity financing and how firms should analyze their cost of capital. Nevertheless, the guidelines failed to fully demonstrate the essence of the cost of debt and equity, which is the required rate of return expected by suppliers of funds.

You are the Genesis Energy accountant and have taken a class recently in financing. You agree to prepare a PowerPoint presentation of approximately 6–8 minutes using the examples and information below:

  1. Debt: Jones Industries borrows $600,000 for 10 years with an annual payment of $100,000. What is the 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 the rate on short-term US Treasury bill is 3 percent, and the expected return on the overall 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

Develop a 10–12-slide presentation in PowerPoint format. Perform your calculations in an Excel spreadsheet. Cut and paste the calculations into your presentation. Include speaker’s notes to explain each point in detail. Apply APA standards to citation of sources. Use the following file naming convention: LastnameFirstInitial_M4_A2.ppt.

Comments

Post a Comment

Popular posts from this blog

Starting with this provided code, add the following functionality

By
1.Starting with this provided code, add the following functionality: Replace hardcoded strings “Zero”, “One”, “Two”, “Three” in the ArrayList based on user typed input (use Scanner or JOptionPane classes). The user will be prompted for the String to be stored in the ArrayList and then hit enter. The user will be able to continue to add items to the ArrayList until they just hit enter without typing anything. Once the user does this (hits enter without typing anything), the program will display all of the elements of the ArrayList, both the index and String values, in a table. It will do this via a single loop making use of an iterator method. 2. Starting with this provided code, add the following functionality: Use a Try/Catch block so that the exception is caught and the program exits a bit more gracefully. Save this file as TryCatch.java. (Be sure to rename the Public Class accordingly.) Starting with the provided code again (without the Try/Catch block), fix the code so that
2 comments
Read more

Josie Eskander

By
  Question 1: Task 1: Report Assume you are Josie Eskander. You are writing in response to techno trading P/L’s advertisement of a new laptop at 20% below normal price. You want information on brand name, availability of service and repairs, delivery times and methods of payment. Write the letter using the seven basic parts of the letter. In the opening paragraph present a clear and courteous request. Secondly write a response from techno trading giving details and proposing the sale. Provide draft of both emails in the space below. Question 2: Task 2: Report In pairs, nominate a good and a bad letter writer. Discuss the key differences. Write a good/bad letter from techno training to Alex Antonov accepting/declining his proposal to invest in the business Question 3: Task 3: Report Write a letter from techno trading p/l to a new client ‘new realities p/l’ urging them to buy techno new virtual reality software. Make a strong argument for the product. Question 4: Task 4: Report Write a l
Post a Comment
Read more

THE AMERICAN REVOLUTION AND THE EARLY REPUBLIC

By
Assignment Overview The American Revolution and Independence As we saw in the Module Overview, there were numerous factors that ultimately led to revolution and independence. In this second Case assignment, you’ll be researching and writing about some of those factors. Case Assignment Write a 3 to 4-page essay identifying at least FOUR factors which led to colonial independence. In your paper, explain which events triggered discord between the colonies and the Mother Country. Be sure to do some research on your own and use other resources to analyze the thought-processes which sparked independent thinking. The best way to approach and organize the paper would be to create a title for each event and then discuss your findings. For example; for the first one you could write, “Event 1, The Seven Years War”. This would be followed by your narrative on how this war led to independence. The rest of the paper would follow this pattern. Assignment Expectations Use concepts from the background
Post a Comment
Read more