FINANCE QUESTIONS 2023 Business & Finance
2023 1 Suppose that Lil John Industries equity is currently selling for 41 per share and that 2 4 million shares
|
1. Suppose that Lil John Industries’ equity is currently selling for $41 per share and that 2.4 million shares are outstanding. Assume the firm also has 34,000 bonds outstanding, and they are selling at 102 percent of par. |
|
What are the firm’s current capital structure weights? (Do not round intermediate calculations. Round your answers to 2 decimal places.) |
|
|
Capital structure weights |
||
|
Equity |
|
[removed] % |
|
|
Debt |
|
[removed] % |
|
|
2. Suppose a firm has had the following historic sales figures. |
|
|
|
Year: |
|
2009 |
|
|
2010 |
|
|
2011 |
|
|
2012 |
|
|
2013 |
|
|
Sales |
$ |
3,100,000 |
|
$ |
3,350,000 |
|
$ |
3,000,000 |
|
$ |
3,600,000 |
|
$ |
3,200,000 |
|
|
|
|||||||||||||||
|
What would be the forecast for next year’s sales using the naïve approach? |
|
|
|
Next year’s sales |
$ [removed] |
3. Suppose that Papa Bell, Inc.’s, equity is currently selling for $25 per share, with 2.0 million shares outstanding. The firm also has 9,000 bonds outstanding, which are selling at 93 percent of par. Assume Papa Bell was considering an active change to its capital structure so as to have a D/E of 0.5.
Which type of security (stocks or bonds) would the firm need to sell to accomplish this?
Sell bonds and buy back stock ?
Sell stock and buy back bonds ?
How much would it have to sell? (Enter your answer in dollars not in millions. Do not round intermediate calculations and round your final answer to 2 decimal places.)
Selling amount$ [removed]
|
4. Suppose a firm has had the following historic sales figures. |
|
|
|
Year: |
|
2009 |
|
|
2010 |
|
|
2011 |
|
|
2012 |
|
|
2013 |
|
|
Sales |
$ |
3,000,000 |
|
$ |
4,250,000 |
|
$ |
2,900,000 |
|
$ |
2,500,000 |
|
$ |
3,100,000 |
|
|
|
|||||||||||||||
|
What would be the forecast for next year’s sales using the naïve approach? |
|
|
|
Next year’s sales |
$ [removed] |
Please only bid if you know how to do the work. Please follow instructions correctly. I don’t need to show work only answers. If you have any questions email me.
We give our students 100% satisfaction for their assignment, which is one of the most important reasons students prefer us from other helpers. Our professional group and planners have more than ten years of rich experience. The only reason that our inception days, we have helped more than 100000 students with their assignments successfully. Our expert’s group have more than 2200 professionals of different topics, and that not all; we get more than 300 jobs every day more than 90% of the assignment get the conversion for payment.
Place Order Now