 |
|
| Browse | Ask | Answer | Search | Join/Login |
|
|
||||
|
Determining asset level at which a company needs to issue additional stock
Hi there,
I am not sure how to go about solving this problem: A firm has $25 million in assets and its optimal capital structure is 60% equity. If the firm has $14 million in retained earnings, at what asset level will the firm need to issue additional stock? (Assume no growth in retained earnings.) I won't list the possible answers because I was hoping someone might be able to point me in the right direction with a correct formula so that I can solve for myself? Thanks in advance for your time! |
||||
Check out some similar questions!
Okay, when a Company like UTG Offers you the option to purchase Additional Stock, what is the usual reason for this? Is it a good sign or a bad one?
I'm not sure if I answered this problem correctly, could someone check it for me? Thanks A firm pays a $4.90 dividend at the end of year one (D1), has a stock price of $70, and a constant growth rate (g) of 6 percent. Compute the required rate of return. Po=D1/Ke-g 4.90/70 -.06 = 4.90/69.94...
Problem 18-21 Stock dividend and its effect LO4 Ace Products sells marked playing cards to blackjack dealers. It has not paid a dividend in many years, but is currently contemplating some kind of dividend. The capital accounts for the firm are as follows: Common stock (2,000,000 shares...
Trying to determine whether to replace an existing asset (machine): Proposed new asset (machine) has a purchase price of $50,000, with $3,000 in installation costs. The asset will depreciate over five years, using the straight-line method. The new asset is expected to increase sales by...
What type of assets are oil reserves, gold mines, and U.S. Treasury notes? Are they fixed, intangible, natural resources?
View more questions Search
| Question Tools | Search this Question |
Add your answer here.
|
