PLEASE READ THE ASSIGNMENT IN ITS ENTIRETY BEFORE COMPELTING HANDSHAKE:

 

Due: Monday, December 19, 2016

Firm Price: $20

 

 

B6022 M4 Assignment 2: Cost of Debt and Equity

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 Energy 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 calculations 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.

Deliver your assignment to the M4: Assignment 2 Dropbox.

Assignment 2 Grading Criteria	Maximum Points
Calculated the expected interest rate (cost of debt).	40
Calculated the expected rate of return on Jones’s stock (cost of equity).	40
Wrote in a clear, concise, and organized manner; demonstrated ethical scholarship in accurate representation and attribution of sources; displayed accurate spelling, grammar, and punctuation.	20
Total:	100

NEED TO MAKE AN ORDER? HERE IS HOW IT WORKS

Need an answer from similar question?Click here and get a solution now

You have just landed to the most confidential, trustful essay writing service to order the paper from. We have a dedicated team of professional writers who will assist you with any kind of assignment that you have. Your work is handled confidentially with a specific writer who ensures you are satisfied. Be assured of quality, unique and price friendly task delivered in good time when you place an order at our website. We have a team of dedicated writers with degrees from all spheres of study. We readily accept all types of essays and we assure you of content that will meet your expectations. Our staff can be reached  via live chat, email or by phone at any given time with prompt response.  

High school	Undergrad.(yrs 1-2)	Undergrad.(yrs 3-4)	Master’s	Doctoral
$10 / page	$10/ page	$12/ page	$15 / page	$17/ page
Note: The prices in the table above are applicable to orders completed within 14 days. Kindly see the full price table for more prices..

We urge you to provide as much information as possible to avoid many revisions. Set your deadline, choose your level, give payment information and relax while you track your work. We will deliver your paper on time. Are you in a quagmire and you are unable to complete your assignments? Do you doubt yourself on the quality of the essay you have written? Myprivatementor.com  is here to assist you. We will offer you unmatched quality that is plagiarism free. Place an order at myprivatementor.com  for guaranteed  high grades.