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linda_us, Master's Degree

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Experience: A tutor for Business, Finance, Accounts and other related topics.

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I have some financial ratio questions, about 8 altogether on

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I have some financial ratio questions, about 8 altogether on an online undergraduate course I am taking in finance. The questions pop up one at a time, so I will have to text them each separately. The first one I have is: compute cost of capital for firm for following: bond has 1000 par value and contract/coupon interest rate 10.1%. Bond has current market value 1120 and will mature in 10 yrs. firms marginal rate 34%. New common stock issue paid 1.83 dividend last year. firm's dividend expected to continue to grow at 7.6% forever.Price of current stock now 27.73 a preferred stock paying 8.5% dividend on $152 par value. bond selling to yield 11.2% where the firm's tax rate is 34% A bond that has 1000 par value and a contract/coupon interest rate of 10.1%. the bonds have a current market value of 1120 and will mature in 10 yrs. firms marginal tax rate is 34% The cost of capital from this bond debt is ____%?

They are on-line basic homework practice type questions regarding financial ratio calculations, so including detail on how you came up with the answer would be helpful so I can understand how to do the problem. These are the basic questions, it is not a final exam, so I do not feel they are worth a lot of money here, but I do want to pay you for your time. The questions should not be very hard, this is an intro finance course, I am just overwhelmed with on-line forum here. Is 20 sufficient here?

Customer:replied 3 years ago.

I can pay a little more if needed. Would you be able to answer about 8 simple financial ratio questions today, as they are homework questions and due by late evening for points towards my grade. Please let me know soon, I definitely need some help with this. Will you have time now or soon??

Customer:replied 3 years ago.

Are you still there ????

Customer:replied 3 years ago.

Just so I know, how long will it normally take to communicate in this forum? I want to work where we can communicate within a reasonable time frame, will that work here?

Ok, that sounds alright. These finance ratio info is confusing to me and need to see just basic info how you came to correct calculation with the problem, not excessive detail if possible. I have to submit these homework questions as large portion of my grade, so these questions do matter and the deadline for these questions is by midnight est. Ok, so you are unable to do any now?

That is family dinner time, harder for me when I have time now, I want to work with you, but my time is now. 6 is family dinner time and I cook....this is my homework time I have a family

If that is all you have and no one else is available, I will have to take 6. Just hectic, as usual, of course. Oh well, I will be here on line at 6, I need to do sooner than later. If 8 simple type questions, will it take a long time if you are working with other customers as well at that time?

Customer:replied 3 years ago.

Can the question go out to other experts to see if they have time now? If so, how do I do that, since I am only communicating with you here. Otherwise, I will keep 6, but it really is not a good time for me, but I need to get this done. How do I check with other tutors for availability now, and if not any available, I will keep time with you, OK?

You can work with another experts as of now I will opt out from this post so that other experts can help (You don't need to do anything). Once another expert pick this up they will respond.

If no expert is available or the questions is still open at 6, I will opt back in to help you.

because I waited on the on-line software, that exact question was changed a little with the numbers...so here is the same Q with a few slight changes. I do not need it on spreadsheet, you can type it here in text if possible. So, the question reads the same with bond at 1000, but the contract/coupon rate 11.1%. Bonds have current market value 1,125 and mature in 10 yrs. Common stock is 1.83 dividend last year. firm's dividends are expected to grow at 6.4% per year forever. price of firm's common stock is now 27.53. preferred stock is paying 8.8 % dividend on $105 par value. A bond selling to yield 12.9% where the firm's tax rate is 34%

The cost of capital from this bond debt is ____%

The system changed the numbers on last question I gave you because I waited tooo long

I don't quite understand your info above here, what are you asking me? Are we able to talk on the phone, I really hate typing everything all the time. I do not understand what you are saying above here....

Well, looking at the problem and your answer. I am new to ratios period. I do not see how to calculate that properly for the cost of capital answer needed...

Customer:replied 3 years ago.

You can provide answer, but not detail for question above. Then I can review the detail of previous question later to understand how you came to the answer.

Customer:replied 3 years ago.

Does that work for you? After this question is answered, then I can move on to the next one and type it to you. The software I am working on only allows me to answer one question, then I can move on to the next one. Ok?

Ok, I made sure I typed in 8.51 (% sign is given), it said the answer was wrong. I checked the numbers I gave you. The info I gave you is correct, not sure why it shows as incorrect with the answer you gave me at 8.51

Customer:replied 3 years ago.

I am unable to move to next question, I have one more try to get it right, or 0 point instead of 1 point (toward final grade of course). So, I have rechecked what I gave you again. It is correct, I can retype info here again if needed. Thanks

a. 6.77% b.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. c. 14.05% d. =(0.109*130)/150.79 = 9.40% e. 8.38%

I need the one answer as stated on problem as cost of capital from bond debt is ____% please. I am by no means familiar with plugging in these numbers yet. I feel lost with this so far, please look at Prob 4 attachment, as this same question has now changed numbers, same Q, my fault as I hit wrong button on software.

Customer:replied 3 years ago.

I tried to attached Prob 4, which is prob 3, which same question, but different numbers because you get 2 tries to each q, but they change the numbers each time, more fun. Here is Prob 4 attachment, pls review and give that answer. THanks

So, do you see on the attachment where the only answer I need to answer on the software program is at the end of q. I see you answered each letter here, but the cost of capital form the bond debt is __% is all I need, thanks for additional input. Prob4 attachment answer is the one I will need now, thank you.

Ok, great that worked correctly. I see how they are doing it now, each letter a,b,c,d, e is answered in sequence. I get it now, I feel stupid...cheese. I need the answers to c,d,e now on prob 4, sorry for the confusion. My first time on this lovely software.

Thanks, XXXXX XXXXX correct. I really appreciate this help! There appears to only be 3 more questions here, so this attachment is prob 5. Thanks again! here is attachment.

Ok, great. I am beginning to understand some things here. Now, for this same question, it is asking me now for the W with lower case of CS weight as a ____%. Round to one decimal place. Can you also provide basic detail here, thank you again.

Ok, great. Thanks. 2 problems left, here is problem 6 as attachment. Again, it is a,b,c,d, and so on. so, obviously it will prompt me to answer a then b, and so on. Here it is, thanks.

Definitely, I will respond to excellent service above with additional tips for your extended time. Thanks for all your additional time and help! Here is the last problem 7 attached. And I will go back here and provide tips above, thanks again.

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.

c.

14.11%

d.

7.83%

e.

8.38%

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