## Just do my homework!

• HTML tags will be transformed to conform to HTML standards.
Question
Submitted by Pokes1587 on Tue, 2012-08-21 23:30
due on Sat, 2012-08-25 23:25
Hand shake with neel: In progress
Hand shake with Academia: In progress
Pokes1587 is willing to pay \$25.00
Pokes1587 bought 3 out of 3 answered question(s)

# The manager of Sensible Essentials conducted an excellent seminar explaining debt and equity financing and how firms should analyze their cost of capital.

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 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 calculation 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.

By Monday, August 20, 2012, deliver your assignment to the M4: Assignment 2 Dropbox.

Submitted by xoon on Sun, 2014-01-26 22:31
teacher rated 1011 times
4.554895
purchased 2 times
price: \$15.00

## 100% correct answer A+++++++++++++++++++TUTORIAL GUARANTEED PERFECT perfect calculations

body preview (0 words)

file1.xlsx preview (73 words)

# Sheet1

xxxxxxxxxxxxxxxxxxxxxxxxx
 xxxxxxxxx Calculating cost xx xxxx xx = 600000 xxx = 100000 Expected xxxx x 16.67% xxxxxxxxxxx cost of xxxxxx Using CAPM xxxxx xxxx xxxx xxxx free xxxx x 3% xxxxxxxx return x xxx xxxxx CAPM xxxxx Cost xx equity = Risk free xxxx + xxxx * (Expected return - xxxx free rate) x xxxxxxxxxxxxxxxx = xxxxxx Using WACC: Jones Total xxxxxx \$2,000,000 xxxxx & xxxxxxxxxx debt xxxxxxxx Common xxxxxxxx xxxxx xxxxxx xxxxxxxx New xxxxxx stock equity xxxxxxxxxx xxxxx liabilities & xxxxxx xxxxxxxxxx Total Debt = xxxxxxxxxxx Total xxxxxx = \$1,400,000.00 xxxxx \$2,000,000.00 xxxxxxxxxxx weights Debt 30.00% xxxxxx xxxxxx xxxx = xxxxxx

# xxxxxx

Submitted by Alvin on Wed, 2013-09-18 22:20
teacher rated 93 times
4.021505
purchased 10 times
price: \$11.99

4.5

## Assignment 2 Cost of Debt and Equity(Complete Answer With PowerPoint Presentation)

body preview (10 words)

Your assignment xx attached..Thanks xxx xxxxxxxxxx xx xxxx assignment!

file1.docx preview (342 words)

Cost of Equity:-

xxxx of equity is defined xx xxx xxxxxx which xxxxxxxxxxxx xxxxxxx on xxxxx investments. It is the xxxxxxxx rate of xxxxxx xxx xxx stockholder xxx it is xxxx xxx the company. Cost of equity can xx xxxxxxxxxx in xxx ways. Dividend valuation xxxxx xxx Capital xxxxx Pricing xxxxxx xxx the ways through xxxxx xxxx xx xxxxxx is calculated.

Formulas xxx the xxxx xxx xxxxxx xxx given below:-

xxxx Model:-

xxx x (Rm-Rf)*beta

Rm = Market xxxxxx

Rf= Risk free xxxxxx

Reference:

CAPM, defined at xxxxxxxxxxxx. xxxxxxxxx from http://www.investopedia.com/terms/c/capm.asp

Dividend xxxxxxxxx xxxxxxx

xxx x Dividend xxx xxxxxxxxxxxxx Market xxxxx of stock x xxxxxx rate of xxxxxxxxxx

xxxx of xxxxxx

Debts are xxx borrowing which xxxxxxx takes xx xxxxxxx the xxxxxxx xxxxxxxxx they have xx pay xxxxxxxx on those xxxxxxxxxx So xxx cost xx debt xx xxxx xxxxxxxx xxxxx xxxxxxx has xx pay on the xxxxxxxxxx xxx normally it xx xxxxx after tax as xx is xxx tax xxxxxxxxxx expense.

Reference:

xxxx

- - - more text follows - - -

file2.xls preview (37 words)

# xxxxxx

xxxxxxxxxxxxxxxxxx
 Cost xx Debt PVIF x xxxxxxxx xxxx x in xxxx formula xxxxxxxxxxxxx xxx x xx xxxx formula is xxxxxxxxxxxx 10.50% xxxx xx xxxxxx xxxxxxxxxxxx 15.5% WACC to be xxxx xx xxxxxxxx rate of xxxxxx Debt 600000 xxxxxx xxxxxx Equitgy 1400000 xxxxx 0.10857 2000000 xxxxx

x

# xxxxxx

x

file3.pptx preview (240 words)

xxxx xx Debt

xxxx of xxxx = xxxxxxxx xxxxxxxx

xxxxxxxxxx

Debts are xxx borrowing xxxxx company takes xx finance xxx company therefore xxxx xxxx xx pay xxxxxxxx on those borrowing. So the cost xx xxxx is xxxx interest which company xxx to xxx xx the borrowings xxx xxxxxxxx xx is taken after tax as xx xx xxx tax deductible xxxxxxxxx

xxxxxxxxxxxx

xxxx xx xxxx

xxxx

x

xxxxxxxx rate

x in xxxx xxxxxxx

1-1/1+x^10)/x

The x xx xxxx formula is

xxxxxxxx

10.50%

xxxx xx xxxxxxxxxxxxx

xxxx of xxxxxx = xxxxxxxxxxxxx

xxxx of Equity (Dividend xxxxxxxxx Model)

Cost xx xxxxxx x xxxxxxxx xxx xxxxxxxxxxxxx Market value of xxxxx x xxxxxx rate xx dividends.

xxxxxxxxxx

xxxx xx equity xx xxxxxxx xx the return which stockholders require xx xxxxx investments. xx xx the xxxxxxxx rate xx xxxxxx xxx the xxxxxxxxxxx xxx xx xx xxxx for the company. Cost xx xxxxxx xxx xx calculated in xxx xxxxx Dividend valuation model xxx xxxxxxx Asset xxxxxxx xxxxxx xxx xxx xxxx through xxxxx xxxx of xxxxxx is calculated.

- - - more text follows - - -

Submitted by xoon on Tue, 2014-01-28 16:19
teacher rated 1011 times
4.554895
purchased 4 times
price: \$10.00

## 100% correct answer A+++++++++++++++++++TUTORIAL GUARANTEED PERFECT NEW FRESH WORK

body preview (0 words)

file1.xlsx preview (73 words)

# Sheet1

xxxxxxxxxxxxxxxxxxxxxxx
 Solution: Calculating cost of Debt xx = 600000 xxx x xxxxxx xxxxxxxx rate = 16.67% xxxxxxxxxxx xxxx of equity Using CAPM xxxxx Beta 1.39 Risk free rate x 3% xxxxxxxx return = xxx xxxxx CAPM xxxxx Cost of xxxxxx = xxxx xxxx xxxx x xxxx x (Expected xxxxxx - risk free rate) = xxxxxxxxxxxxxxxx x 15.51% Using WACC: xxxxx Total xxxxxx xxxxxxxxxx xxxxx & xxxxxxxxxx debt xxxxxxxx Common xxxxxxxx xxxxx xxxxxx xxxxxxxx New xxxxxx xxxxx xxxxxx \$1,000,000 Total xxxxxxxxxxx & xxxxxx xxxxxxxxxx xxxxx Debt x xxxxxxxxxxx xxxxx xxxxxx x xxxxxxxxxxxxx Total xxxxxxxxxxxxx Calculating xxxxxxx Debt 30.00% Equity 70.00% WACC x xxxxxx

# xxxxxx

Submitted by Assignment Ex... on Sun, 2013-08-11 12:45
teacher rated 247 times
4.554655
price: \$20.00

## No Answer Can Be BETTER Than This!! GUARANTEED!!!

body preview (0 words)

file1.docx preview (342 words)

xxxx of xxxxxxxx

Cost xx equity is defined xx the xxxxxx which stockholders xxxxxxx xx their investments. It xx the required xxxx xx xxxxxx xxx xxx xxxxxxxxxxx but xx is cost xxx xxx xxxxxxxx xxxx of equity xxx xx xxxxxxxxxx in two ways. xxxxxxxx valuation xxxxx xxx xxxxxxx xxxxx xxxxxxx xxxxxx are xxx xxxx xxxxxxx xxxxx xxxx xx equity is xxxxxxxxxxx

Formulas for the xxxx xxx xxxxxx xxx xxxxx xxxxxxx

xxxx Model:-

xxx = xxxxxxxxxxxx

Rm = xxxxxx xxxxxx

Rf= xxxx xxxx return

xxxxxxxxxx

Dividend Valuation Model:-

k.e = Dividend per share/Current xxxxxx value of xxxxx x Growth xxxx xx dividends.

Cost xx Debt:-

xxxxx are xxx xxxxxxxxx xxxxx xxxxxxx xxxxx xx finance the company xxxxxxxxx they xxxx xx xxx xxxxxxxx on xxxxx borrowing. xx the xxxx of xxxx is xxxx interest which xxxxxxx has to xxx on xxx xxxxxxxxxx xxx xxxxxxxx it is xxxxx after xxx as xx xx xxx tax xxxxxxxxxx xxxxxxxx

xxxxxxxxxx

xxxx

- - - more text follows - - -

file2.rar preview (0 words)

file3.xls preview (37 words)

# Sheet1

xxxxxxxxxxxxxxxxx
 xxxx of xxxx PVIF 6 Interest rate x xx xxxx xxxxxxx xxxxxxxxxxxxx The x xx PVIF xxxxxxx xx xxxxxxxxxxxx 10.50% xxxx of xxxxxx xxxxxxxxxxxx xxxxx WACC xx be xxxx as required xxxx of xxxxxx xxxx xxxxxx xxxxxx 0.0315 xxxxxxx xxxxxxx 15.5% 0.10857 xxxxxxx 14.0%

x

# Sheet3

Submitted by Kumail Raza on Thu, 2012-08-23 10:07
teacher rated 24 times
4.375
price: \$0.00

## http://www.homeworkmarket.com/content/assignment-2-cost-debt-and-equity

Submitted by Kumail Raza on Wed, 2012-08-22 06:50
teacher rated 24 times
4.375
purchased 2 times
price: \$25.00

## Answer file is attached. Feel free to contact for any further assistance.

body preview (0 words)

file1.pptx preview (577 words)

Debt and xxxxxx Financing

xxxx of Debt xxx Equity

Prepared xx xxxxxx Raza

1

Cost xx Debt

xxxxxxx xx xxxx Financing Debt: xxxxx Industries borrows \$600,000 for 10 years with xx xxxxxx xxxxxxx of xxxxxxxxx xxxx xx the expected xxxxxxxx rate (cost of xxxxxx

Prepared xx Kumail xxxx

x

xxx an xxxxxxxxxx to xx xxxxxxxxxxx xxx expected return on xxxxxxx must be greater xxxx the xxxx xx xxxxxxxx xxx xxxx xx capital xx xxx xxxx of xxxxxx that xxxxxxx could be expected to earn in xx alternative xxxxxxxxxx xx equivalent risk. If a project xx of similar xxxx to a company's xxxxxxx business activities xx is xxxxxxxxxx to use the xxxxxxxxx average xxxx xx xxxxxxx as x xxxxx xxx xxx xxxxxxxxxxx x xxxxxxxxx securities typically xxxxxxx both debt and xxxxxxx xxx xxxx xxxxxxxxx xxxxxxxxx both the cost xx xxxx and the cost xx xxxxxx to determine a company's cost xx xxxxxxxx xxxxxxxx a rate of xxxxxx xxxxxx xxxx xxx cost of xxxxxxx is xxxxxxx required.

2

Cost xx Debt

xxxxxxxxxxxxxxxxxxxx

- - - more text follows - - -

Submitted by Engineer Maxw... on Tue, 2015-02-03 05:00
teacher rated 62 times
3.87097
price: \$6.00

## A++ PERFECTLY DONE

body preview (0 words)

file1.pptx preview (242 words)

Cost xx Debt

Cost xx debt = xxxxxxxx xxxxxxxx

Definition

xxxxx xxx xxx xxxxxxxxx xxxxx xxxxxxx xxxxx xx xxxxxxx xxx company therefore they xxxx xx xxx interest on those borrowing. So xxx cost of debt xx that interest which company xxx to pay on the xxxxxxxxxx xxx normally it xx xxxxx after tax xx it xx xxx xxx xxxxxxxxxx expense.

xxxxxxxxxxxx

Cost xx Debt

xxxx

x

xxxxxxxx rate

x in PVIF xxxxxxx

xxxxxxxxxxxxx

xxx x in PVIF xxxxxxx is

6.014773

xxxxxx

xxxx xx xxxxxxxxxxxxx

xxxx xx xxxxxx x (Rm-Rf)*Beta

xxxx of Equity (Dividend xxxxxxxxx Model)

Cost of xxxxxx = Dividend per xxxxxxxxxxxxx xxxxxx xxxxx of stock + Growth xxxx xx xxxxxxxxxx

Definition

Cost of xxxxxx is defined xx xxx return which stockholders require on xxxxx investments. xx is the required xxxx of xxxxxx xxx the xxxxxxxxxxx but it is xxxx for xxx xxxxxxxx xxxx of xxxxxx xxx xx calculated in xxx xxxxx xxxxxxxx valuation model xxx Capital xxxxx Pricing xxxxxx xxx xxx ways xxxxxxx xxxxx cost of xxxxxx xx xxxxxxxxxxx

- - - more text follows - - -

file2.xls preview (37 words)

# Sheet1

xxxxxxxxxxxxxx
 xxxx xx xxxx PVIF x Interest xxxx x xx PVIF formula xxxxxxxxxxxxx xxx x in PVIF formula xx xxxxxxxxxxxx 10.50% xxxx of Equity 3+1.39(12-3) 15.5% WACC to be xxxx as required rate of return Debt 600000 xxxxxx xxxxxx Equitgy xxxxxxx 15.5% 0.10857 2000000 14.0%

# xxxxxx

x

Submitted by Good_Morning on Tue, 2014-11-04 20:06
teacher rated 41 times
3.731705
price: \$8.99

## Cost_of_equity

body preview (3 words)

xxxxxxxxxxxxxx

file1.docx preview (342 words)

Cost of xxxxxxxx

Cost xx xxxxxx is xxxxxxx as the return xxxxx xxxxxxxxxxxx xxxxxxx on their investments. xx xx xxx xxxxxxxx xxxx xx xxxxxx xxx the xxxxxxxxxxx but xx xx cost for xxx xxxxxxxx Cost xx xxxxxx xxx be xxxxxxxxxx in two xxxxx xxxxxxxx xxxxxxxxx xxxxx xxx Capital Asset xxxxxxx models are the xxxx through which cost of xxxxxx xx xxxxxxxxxxx

xxxxxxxx for xxx xxxx xxx models xxx given xxxxxxx

CAPM Model:-

xxx = xxxxxxxxxxxx

xx x xxxxxx return

Rf= Risk free xxxxxx

Reference:

CAPM, defined at investopedia. xxxxxxxxx from http://www.investopedia.com/terms/c/capm.asp

xxxxxxxx Valuation Model:-

k.e x xxxxxxxx per share/Current Market value xx stock x xxxxxx xxxx xx dividends.

Cost xx xxxxxx

Debts xxx xxx borrowing xxxxx company xxxxx to finance the xxxxxxx xxxxxxxxx xxxx xxxx to xxx interest on xxxxx borrowing. xx xxx cost of xxxx is xxxx interest which xxxxxxx xxx xx xxx on xxx xxxxxxxxxx xxx xxxxxxxx xx xx xxxxx after xxx as it xx the tax deductible xxxxxxxx

xxxxxxxxxx

xxxx

- - - more text follows - - -

file2.xls preview (37 words)

# xxxxxx

xxxxxxxxxxx
 Cost of Debt PVIF x Interest rate x xx PVIF xxxxxxx xxxxxxxxxxxxx The x xx PVIF formula xx xxxxxxxxxxxx xxxxxx xxxx xx Equity 3+1.39(12-3) 15.5% WACC to xx xxxx as required rate of xxxxxx Debt 600000 xxxxxx xxxxxx Equitgy xxxxxxx xxxxx xxxxxxx xxxxxxx 14.0%

x

# xxxxxx

file3.pptx preview (240 words)

xxxx of xxxx

xxxx of xxxx = xxxxxxxx Payments

xxxxxxxxxx

Debts are xxx xxxxxxxxx xxxxx company xxxxx xx xxxxxxx xxx company therefore they have to xxx interest on those xxxxxxxxxx xx xxx xxxx of debt xx that xxxxxxxx xxxxx company xxx to xxx on xxx xxxxxxxxxx and normally it is xxxxx after tax as it is xxx xxx deductible expense.

Calculations

xxxx xx Debt

PVIF

6

xxxxxxxx rate

x xx xxxx xxxxxxx

xxxxxxxxxxxxx

The x in PVIF formula xx

6.014773

10.50%

xxxx xx xxxxxxxxxxxxx

xxxx of equity x xxxxxxxxxxxxx

Cost xx xxxxxxxxxxxxxxxx Valuation Model)

xxxx of Equity x xxxxxxxx per xxxxxxxxxxxxx Market xxxxx of xxxxx x xxxxxx xxxx of xxxxxxxxxx

Definition

xxxx of xxxxxx is xxxxxxx xx the xxxxxx which xxxxxxxxxxxx require on xxxxx investments. It is xxx xxxxxxxx rate of xxxxxx xxx the xxxxxxxxxxx but it xx cost for the xxxxxxxx xxxx xx equity xxx xx calculated in two xxxxx xxxxxxxx valuation xxxxx xxx xxxxxxx Asset Pricing xxxxxx are the xxxx xxxxxxx xxxxx xxxx xx equity xx xxxxxxxxxxx

- - - more text follows - - -

Submitted by shahimermaid on Wed, 2012-08-22 13:18
teacher rated 387 times
4.322995
purchased 3 times
price: \$25.00

3

## the answer is attached along with excel file

body preview (0 words)

file1.pptx preview (864 words)

xxx Cost of xxxxxxx

Sensible xxxxxxxxxx

Types of Long-term xxxxxxx xxxx xxxxx xxx

xxx xxxxxxxxx decision

The firm needs capital xx xxxxxx xx the xxxxxxx They are xx xxx types: xxxxxxx assets xxx the xxxxx xxxxxxx Current xxxxxx xxx used xx xx year xxx xxxxx assets xxxxxxx xxxxx machinery, buildings xxxx remain xxx xxxx term with xxx company. xxx xxxxxxx xxx xx xxxxx the financing with xxx investment decisions. The xxxxxxx assets xxxxxx be financed from current liabilities & fixed assets should be financed xxxx xxx long term xxxxxxxxxxxxxx xxx xxxxxxx two xxxxxxxxxx xx xxxx xxxx xxxxxxxx Debt and equity. Debt xx xxxx is borrowed xxxx banks and has to be xxxxxxxx xxxxx with xxxxxxxxxxxxxxx xx the xxxxxxxxxx by the shareholders that remains for xxxx term and xxxx xxx xxxxxxxx by xxxxxxxx .

x

xxx xxxxxxxxxx xxx rate of xxxxxx on a security is x benefit of investing. For xxxxxxxxx xxxxxxxxx xxx xxxx xxxx xx return xx x cost xx xxxxxxx xxxxx xxxx xxx needed to xxxxxxx xxx xxxxxxxxx

- - - more text follows - - -