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linda_us, Master's Degree
Category: Business and Finance Homework
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Experience:  A tutor for Business, Finance, Accounts and other related topics.
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These are 3 problems for my FIN/370 Homework. Please help by

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These are 3 problems for my FIN/370 Homework. Please help by providing these answers thank you!
1). Templeton Extended Care Facilities, Inc is considering the acquisition of a chain of cemeteries for $390 million. Since the primary assest of this business is real estate, Templeton's management has determined that they will be able to borrow the majority of the money needed to buy the business. The current owners have no debt financing but Templeton plans to borrow $280 million and invest only $110 million in equity in the acquisition. What weights should Templeton use in computing the WAAC for this acquisition?
a). The appropiate (W d) weight is _? (round to one decimal place)
b). The appropiate (W cs) weight is _? (round to one decimal place)
2). Compute the cost of capital for the firm for the following:
a). A bond that has a $1,000 par value (face value) and a contract or coupon interest rate of 11.2%. The bonds have a current market value of $1,127 and will mature in 10 years. The form's marginal tax rate is 34% .
aa). The cost of capital from this bond debt is _% (round to two decimals places)
b). A new common stock issue that paid a $1.76 dividend last year. The firm's dividends are expected to continue to grow at 7.5% per year forever. The price of the firm's common stock is now $27.27.
bb). The cost of capital from the common equity is _% (round to two decimal places)
c). A preferred stock paying a 9.9% dividend on a $150 par value.
cc). The cost of the preferred stock is _% (round to two decimal places)
d). A bond selling to yield 12.5% where the form's tax rate is 34%.
dd). The cost of capital from this bond debt is _% (round to two decimal places)
3). Your firm is considering a new investment proposal and would like to calculate its weighted average cost of capital. To help in this, compute the cost of capital for the firm for the following:
a). A bond that has a $1,000 par value (face value) and a contract or coupon interest rate of 12.2%. the bonds have a current market value of $1,127 and will mature in 10 years. The firm's tax rate is 34%.
aa). The cost of capital from this bond debt is _%. (round to two decimal places.)
b). If the firm's bonds are not frequently traded, how would you go about determining a cost of debt for this company? (multiple choice)
bb). A) It is standard practice to estimate the cost of debt using the yield to maturity on a portfolio of bonds with a similar credit rating and maturity as the firm's outstanding debt. B). It is standard practice to estimate the cost of debt using the yield to maturity on a treasury bond of the same maturity. C). It is standard practice to estimate the cost of debt using the average coupon rate on a portfolio of bonds with a similar credit rating and maturity as the firm's outstanding debt. D). It is standard practice to estimate the cost of debt using the bond's coupon rate and adjust it for inflation.
c). A new common stock issue that paid a $1.79 devidend last year. The par value of the stock is $14, and the firm's dividends per share have grown at a rate of 7.4% per year.. This growth rate is expected to continue into the forseeable future. The price of this stock is now $27.05.
cc). The cost of capital from the common equity is _% )round to two decimal places)
d). A preferred stock paying a 10.4% dividend on a $126 par value. The preferred shares are currently selling for $150.92.
dd). The cost of the preferred stock is _%
Submitted: 1 year ago.
Category: Business and Finance Homework
Expert:  linda_us replied 1 year ago.
Hello and welcome,
I would be glad to help you with your questions.
Please advise your deadline.
Thanks
Customer: replied 1 year ago.


Urgent time frame. Alos this is only week 2 of my course. I have week 3, 4 and 5 problems that are similar to these questions. I do not have enpugh money to pay you 50$ per week but i am severe need of your services, this is my last course till graduation. Is there anyway we can meet in the middle in regards XXXXX XXXXX I will need your services 3 more times a nd I do not have 200$ to give his month.

Expert:  linda_us replied 1 year ago.
I would be glad to help you with your entire course. How much are you willing to pay for the entire course?
Customer: replied 1 year ago.


I can give you 100$ today and I will be broke until I recieve my next financial aid check and thats not till April. So $100 for the entire course. Please

Expert:  linda_us replied 1 year ago.
OK. Dont worry I would be happy to help you with 100$. :)

So do you have all your questions with your right now? If yes you can upload the whole document here. If not, I will answer these 3 questions in an hour. Then you can post the questions here when you get them and I will answer them as they come.

Also this post is for $50 so once you accept/rate the solution you can add $50 as a bonus making total $100.
How does that sound? Let me know..:)
Customer: replied 1 year ago.


Thats sounds great! I will give you the problems week by week but I will and the extra 50$ right now. Thank you so much my cell phone number is XXXXX Please text me if I am not by my computer to reply to you thank you.

Expert:  linda_us replied 1 year ago.
As you can see we are not allowed to share personal info with the customers and vice versa so no numbers and email etc.
I can only communicate with you through this site as is the policy.
And week by week sounds fine. Once you post the questins and I answer you will be intimated via mail or you can check back any time. And the extra $50 bonus you can only add after you rate/accept my solution when I post it.
Customer: replied 1 year ago.


ok thank you. looking forward to your assistance

Expert:  linda_us replied 1 year ago.
I am glad to help. Please check back for the solution to above questions as I will post them tonight.
Have a great evening!!
Customer: replied 1 year ago.


You too! so do I pay now or wait till you send the post?

Expert:  linda_us replied 1 year ago.
No you wait for the answers. You would like to pay for the answers right..:)
Also I would like to clarify do you know how many questions ae there in total for the entire course.
Customer: replied 1 year ago.


3 questions per week the same format as these first 3 i sent yes I would like to pay you. Thank you.

Expert:  linda_us replied 1 year ago.
Ok. Sounds fine.
No you misunderstood. I mean you should pay me only when I post the answers to your questions. So that why I said you should pay for the answers. :)
Sorry for the confusion in language..
Customer: replied 1 year ago.

I am confused on the payment. When you post these first 3 ansers how much do you want mr to pay? Becasue I can only pay you a total of 100$ for the whole course including these first 3 questions. I can pay the 100$ after your first post of these answers and then just accept the other weeks worth of ansers with no fee since i would be paying you the 100$ now.

Expert:  linda_us replied 1 year ago.
This is how we can do it to make it simple.
You have posted your question for week 1 here. I will answer tonight. Then you can accept/rate it. Then you will be charged $50 for it.
When you post week 2 I will again post the solution but you donot click the accept button consider it free.

Then for week 3 and 4 you again post the questions below here or create a new post. Once I answer the week 3 and 4 you can add the bonus of $50.

So you need to click accept/rate only ONCE and then add a Bonus ONCE.
So that will make a total of $100.

Customer: replied 1 year ago.


sounds great thank you

Expert:  linda_us replied 1 year ago.
Thanks.
See you!!
Expert:  linda_us replied 1 year ago.
linda_us, Master's Degree
Satisfied Customers: 7137
Experience: A tutor for Business, Finance, Accounts and other related topics.
linda_us and other Business and Finance Homework Specialists are ready to help you
Expert:  linda_us replied 1 year ago.
Hi Jarred,
Thank you. I have received the payment as well as the bonus. If you need any communication to be done please post in this thread as a reply.
Creating a new post will charge you additional money. I will ask the moderator to close the post.
Customer: replied 1 year ago.

Hi Linda I have my week 3 questions ready to send you. Are you available?

Expert:  linda_us replied 1 year ago.
Yes I am. Please send.
Customer: replied 1 year ago.

Hey is there anyway I can attach it as a document?

Expert:  linda_us replied 1 year ago.
Yes.

Click here to see upload process
Customer: replied 1 year ago.


Sorry Linda it will only allow me to create a link but I have it saved in a word document. I can copy and paste it like last week or I can email it to a your work email or something?

Expert:  linda_us replied 1 year ago.
Copy paste will work for me as we cannot share email as per policy.
Customer: replied 1 year ago.


ok I have it organized in word so if you have any questions just let me know.

Expert:  linda_us replied 1 year ago.
You can also upload it on site like www.box.com or www.mediafire.com and share the link here.
Customer: replied 1 year ago.


oh ok i will do that

Customer: replied 1 year ago.


Here are my questions.


The link is here

Expert:  linda_us replied 1 year ago.
Got the question, I will post the solution by tomorrow.
Customer: replied 1 year ago.


hank you Linda you are the best!

Expert:  linda_us replied 1 year ago.
Thanks :-)
Customer: replied 1 year ago.

Good evening Linda, here is my wk 4 questions click here. Also i have 1 more week in my class. I have a final exam and a homework assignment. Will u be available to help with my final and homework assignment?

Expert:  linda_us replied 1 year ago.
Whats your deadline for this assignment.

I can help you with final exam and a homework assignment. Let me know how many questions would be there and whats you total offer for these two assignments.
Customer: replied 1 year ago.

The final exam will need to be done in less than 3 hours once i send it to u. the assignment is not due till next tuesday.. what is the least amount i can pay?

Expert:  linda_us replied 1 year ago.
I can complete it in the required time. I am not sure about total number of question in final and assignment but since the time involved is 3 hours. Around $50-$80 should be fair amount.
Customer: replied 1 year ago.


ok i will pay 50$ for exam and last assignment. thank u so much!

Expert:  linda_us replied 1 year ago.
I just gave you the range. It all depends upon number of question in final exam & assignment and its difficulty level.

Do you have idea how many question would be there in final exam and number of questions in assignment.
Customer: replied 1 year ago.


20-30 questions all multiple choice

Expert:  linda_us replied 1 year ago.
And the assignment?
Customer: replied 1 year ago.


4 questions

Expert:  linda_us replied 1 year ago.
Are thes also multiple choice. I can do final for $40 (if 20 Question) or $50 (if 30 questions) and then depending upon assingment question we can decide the price later.
Customer: replied 1 year ago.


the assignment is the same as all the other assignments we have been doing. Im sorry i may have been confused because i thought the wk 5 assignment was included into our deal we made earlier. the final exam would be the only extra assignment i am asking for. If im wrong just let me know and we work it out. but thank u for evrything and im sure we will get it it right lol

Expert:  linda_us replied 1 year ago.
Yes, even I got confused. Week 5 is the part of deal.

So for final we agree to $50. Let me know when you want to take that up so that I can be online.
Customer: replied 1 year ago.


ok thank u i will asap

Expert:  linda_us replied 1 year ago.
Let me tomorrow at 8:30 PM EST. I will complete you week 4 assignment by then.
Customer: replied 1 year ago.


ok thanks

Customer: replied 1 year ago.


hey linda i have a last minute group assignment that i need help with with. i just have to answer 2 questions. i will pay an additional 20$ if u can assist me. thanks

Expert:  linda_us replied 1 year ago.
Sure. Please post your questions.

Also do you want to do timed assignment today?
Expert:  linda_us replied 1 year ago.
For week 4 Question 4 some details is missing. Can you post that.
Customer: replied 1 year ago.


what details r missing?

Expert:  linda_us replied 1 year ago.
Similar to this

"To finance the purchase, Ranch Manufacturing. will sell 10 year bonds paying 6.8% per year at the market price of $1073. Preferred stock paying a $2.07 dividend can be sold for $25.32. Common stock for Ranch Manufacturing. is currently selling for $55.69 per share and the firm paid a $3.03 dividend last year. Dividends are expected to continue growing at rate of 4.6% per year into the indefinite future. If the firms tax rate is 30% what discount rate should you use to evaluate the equipment purchase?"
Customer: replied 1 year ago.

 


To finance the purchase, ranch manufacturing will send 10-year bonds paying 7.1% per year at the market price of $1,042. Preferred stock paying a $2.02 dividend can be sold for $24.93. Common stock for Ranch Manufacturing is currently selling for $55.45 per share and the firm paid a $3.03 dividend last year. Dividends are expected to continue growing at a rate of 4.7% per year into the indefinite future. If the firm’s tax rate is 30%, what discount rate should you use to evaluate the equipment purchase?

Expert:  linda_us replied 1 year ago.
Working on it.
Expert:  linda_us replied 1 year ago.

Please click here for week 4 solution

Let me know if you want to do group assignment problem today or timed assignment. I would wait for you for another 15-20 minutes before logging out.
Customer: replied 1 year ago.


i will do the group assifnment tonight

Customer: replied 1 year ago.

this is the group questions i will pay the 20$ thanks linda! click here

Expert:  linda_us replied 1 year ago.

This question has seven parts and to solve the second question you posted we need to solve cash flow first. I will post the solution to all seven parts :-)

 


You need to create a new post as this one is already rated. We can do the final quiz and this assignment in your new post.

Customer: replied 1 year ago.


click here ok here are all 7 questions you can answer all that are necesarry to get the ansers for questions 3 and 4. i will pay you accordingly. Once i open the final exam i have 3 hours to complete. will u have that time tongiht? it is not due till next tuesday i april 2nd.

Expert:  linda_us replied 1 year ago.
Here are the seven answer you are looking for

Please click here for Caledonia (Word Doc)

Please click here for Caledonia (Excel Working)

We can do the Quiz tomorrow and then you can pay me for both the question together.

I will be offline in 10 minutes. If you have any doubts please reply ASAP or I will answer them tomorrow morning.
Customer: replied 1 year ago.


ok thanks tomorro it is

Expert:  linda_us replied 1 year ago.
Good night.
Customer: replied 1 year ago.

Hey linda, happy easter. i am down to the last session for my class. I have the final exam and the wk 5 questions. I am with family today. I will be available monay evening and all day tuesday. let me know if ur available at any point during tomorrow and tuesday. thanks

Expert:  linda_us replied 1 year ago.
I would be available on Monday evening after 8:30 PM EST. Let me know if you want to complete the remaining assignment tomorrow.
Customer: replied 1 year ago.


absolutely thank u talk to u then

Customer: replied 1 year ago.


hey linda

Expert:  linda_us replied 1 year ago.
Hi

I am here.
Customer: replied 1 year ago.

hey linda so for my last wk assignment i have some graph problems related to my finance class. can i give u my username and password XXXXX u can access the "my finance lab" and you can see and solve the problems because i can not rewrite a graph.

Expert:  linda_us replied 1 year ago.
So I wont be able to login but don't worry you just give me the remaining information and I will make the graph for you.

I have done these in past ;-)
Customer: replied 1 year ago.


ok great, well i will give u a screen shot and let me know if that works

Expert:  linda_us replied 1 year ago.
Yes that would work.
Customer: replied 1 year ago.

So if you have any questions let me know. click here

Expert:  linda_us replied 1 year ago.
I got the assignment. Do you want to complete the timed assignment today?

Also since I posted the solution to Caledonia assignment in this post I never got paid for that. Request you to create a new post for timed assignment and in that post itself you can pay me for both (Timed and Caledonia).
Customer: replied 1 year ago.


yes i would like to the timed assignment today. ok i will pay for both thanks!

Expert:  linda_us replied 1 year ago.
Thanks.
Expert:  linda_us replied 1 year ago.
I waited for you to do the timed assignment. Let me know if you to complete this today. I will also post the solution to your last assignment today.
Customer: replied 1 year ago.


yes im sorry i waiting for the assignment. ok im rdy now

Expert:  linda_us replied 1 year ago.
I can't do it now but we can do it in evening or after 2 PM.
Customer: replied 1 year ago.

ok, i have class at 6pm pt. so 2pm we will b cutting it close. can we make sure we are online at 2pm?

Expert:  linda_us replied 1 year ago.
Sure, I would be online at 2 PM.
Customer: replied 1 year ago.


ok u can post the assignment as well. would u like me to pay now for both or at 2pm

Expert:  linda_us replied 1 year ago.

I wont be able to complete it by then. Lets do everything at 8 PM EST.

Customer: replied 1 year ago.


ok so i will send u the final exam at 2pm and then i have 3 hours to complete it.

Expert:  linda_us replied 1 year ago.
That would be good.
Customer: replied 1 year ago.


ok thanks, and if u could finish it b for 5 so i can have time to submit it and submit my assignment b for class i would appreciate it. thanks linda i will b back at 2

Customer: replied 1 year ago.


can i pa now? how much for both?

Expert:  linda_us replied 1 year ago.
Please create a new post of $20 for the new assignment. Once you post the questions I will be able tell you the amount depending on work involved.
Customer: replied 1 year ago.


r u ready for the final exam now? thats the only new questions i have.

Expert:  linda_us replied 1 year ago.
Yes, please make a new post as i suggested above .
Customer: replied 1 year ago.


i created a new question

Expert:  linda_us replied 1 year ago.
Yes I have received it.

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