Kim’s Bridal Shoppe has 10,200 shares of common stock outsta…

Kim’s Bridal Shoppe has 10,200 shares of common stock outstanding at a price of $36 per share. It also has 215 shares of preferred stock outstanding at a price of $87 per share. There are 520 bonds outstanding that have a coupon rate of 5.5 percent paid semiannually. The bonds mature in 17 years, have a face value of $1,000, and sell at 93 percent of par. What is the capital structure weight of the common stock?

Saucier Company currently sells 1,208 units per month for to…

Saucier Company currently sells 1,208 units per month for total monthly sales of $209,600. The firm is considering replacing its current cash-only credit policy with a net 30 policy. The variable cost per unit is $106 and the monthly interest rate is .71 percent. What is the new sales quantity at the switch break-even level of sales? Assume the selling price per unit and the variable costs per unit remain constant.

Bruno’s Lunch Counter is expanding and expects operating cas…

Bruno’s Lunch Counter is expanding and expects operating cash flows of $30,900 a year for 6 years as a result. This expansion requires $99,500 in new fixed assets. These assets will be worthless at the end of the project. In addition, the project requires $7,600 of net working capital throughout the life of the project. What is the net present value of this expansion project at a required rate of return of 13 percent?