70.2K

Verified Solution

Link Copied!

Please answer what the percentage is

HV AZ celorline Structured Activity: WACC The Poulsen Company's year end balance sheet is shown below. This cout of common equity 157, is before tax cost of the 11%, and to marginal 40% Assume that the firm long-term debt all at par value. The firm's total debt, whide the mom's short term debt and long-term 1.171 The tinhas 570 shares of common stock outstanding that sell for 4.00 pershare. The data has been collected in the Microsoft Online file below. Open the sprendheet and perform the required analysis to anwer the question below. Operpredsheet Calculate Poulion's WACC ning market value weights found your www to two decimales Docteunt your wtemedimte calculation Assets Liabilities And Equity Accounts and 510 NON Cash $ 120 240 61 Accounts roce inventories Short-term det Long-term debit 360 51.110 1,099 Pant and went net 2,160 Conegut Tucal abilities and equity 22,880 $2,1180 819 D E 5 15.0096 11.00% 40.00% 576 $4.00 Yes 1 WACC 2 3 Cost of common equity (ro) Before-tax cost of debt (ra) 5 Marginal tax rate (T) 6 Common shares outstanding 7 Current stock price 8 Long-term debt sells at par value 9 10 Balance Sheet: 11 Assets 12 Cash 13 Account receivable 14 Inventories 15 Plant and equipment, not T6 Total assets 17 18 19 Market value of total debt 20 Market value of common equity 21 Total capital 22 23 Percentage of debt + $120.00 $240.00 $380.00 $2,100.00 $2 880.00 Liabies and Equity Accounts payable and accruals Short-term debt Long-term debt Common equity Total liabilities and equity $10.00 $61.00 $1.110.00 $1,699.00 $2 880.00 Formulas WNIA WNIA WNA INA UNIA

Answer & Explanation Solved by verified expert

See Answer