finance multi-part question and need support to help me learn. The Assignment must be submitted on Blackboard (WORD format only) via allocated folder. Assignments submitted through email
finance multi-part question and need support to help me learn.
The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented; marks may be reduced for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.
Requirements: 2000
College of Administrative and Financial Sciences
Assignment 2
Corporate Finance (FIN201)
Deadline for students: (4/02/2023@ 23:59)
For Instructors Use only
Instructions PLEASE READ THEM CAREFULLY
This assignment is an individual assignment.
The Assignment must be submitted only in WORD format via the allocated folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented. This also includes filling in your information on the cover page.
Students must mention question numbers clearly in their answers.
Late submitted assignments will NOT be entertained.
Avoid plagiarism; the work should be in your own words; copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.
Assignment Questions: (Marks: 15)
Q1. Here is a forecast of sales by National Bromide for the first 4 months of 2022 (figures in thousands of dollars):
?
On average, 50% of credit sales are paid for in the current month, 30% in the next month, and the remainder in the month after that. What are the expected cash collections in months 3 and 4??(Enter your answers in whole dollars not in thousands of dollars.) (5 Marks) (Ch 19)
Q2. Reactive Power Generation has the following capital structure. Its corporate tax rate is 21%.
?
What is its WACC??(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) (3 Marks) (Ch 13)
Q3. Nodebt Inc. is a firm with all-equity financing. Its equity beta is 0.80. The Treasury bill rate is 4%, and the market risk premium is expected to be 10%.
?
a.?What is Nodebts asset beta??(1 Mark) (Ch 13)
b.?What is Nodebts WACC??(1 Mark) (Ch 13)
Q4. World Enterprises is determined to report earnings per share of $2.80. It therefore acquires the Wheelrim and Axle Company. There are no gains from merging. In exchange for Wheelrim and Axle shares, World Enterprises issues just enough of its own shares to ensure its $2.80 earnings per share objective.
Complete the table below for the merged firm. (Do not round intermediate calculations. Round “Price per share” and “Price-earnings ratio” to 2 decimal places and other answers to the nearest whole number.) (2 Marks) (Ch 21)
How many shares of World Enterprises are exchanged for each share of Wheelrim and Axle?
(1 Mark) (Ch 21)
What is the cost of the merger to World Enterprises? (1 Mark) (Ch 21)
What is the change in the total value of the World Enterprises shares that were outstanding before the merger? (1 Mark) (Ch 21)
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