subject
Business, 05.05.2020 07:28 CrownedQueen

Compuvac Company just completed its initial forecasts of next year's financial statements using the projected balance sheet method. The firm determined that it needs $4 million in new debt, which can be issued at par with a 10 percent annual coupon. Additionally, the firm can sell 500,000 shares of new common equity, which will net $18.10 per share. Next year's expected dividend is $0.48 per share. After accounting for the financing feedbacks associated with raising the required funds, Compuvac expects its taxes to be $160,000 lower than were reported in the initial forecasts. Given this information, what should Compuvac find the change to be in the addition to retained earnings that is reported in the income statement that was initially forecasted after the financing feedbacks are included

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 19:20
What impact did the economic opportunities in pennsylvania and new york have on virginia? a. virginia planters started to migrate to new york. b. new yorkers began buying up cheap virginia real estate. c. virginians found themselves resorting increasingly to slavery. d. virginians loosened their slave laws to attract more migrants.
Answers: 2
question
Business, 22.06.2019 12:10
Which of the following is not part of the mission statement of the department of homeland security? lead the unified national effort to secure america protect against and respond to threats and hazards to the nation ensure safe and secure borders coordinate intelligence operations against terrorists in other countries
Answers: 1
question
Business, 22.06.2019 16:40
An electronics store is running a promotion where for every video game purchased, the customer receives a coupon upon checkout to purchase a second game at a 50% discount. the coupons expire in one year. the store normally recognized a gross profit margin of 40% of the selling price on video games. how would the store account for a purchase using the discount coupon?
Answers: 3
question
Business, 22.06.2019 17:30
What is one counter argument to the premise that the wealth gap is a serious problem which needs to be addressed?
Answers: 1
You know the right answer?
Compuvac Company just completed its initial forecasts of next year's financial statements using the...
Questions
question
Biology, 05.12.2019 23:31
question
Chemistry, 05.12.2019 23:31