SU_FIN2030_W4_A2_Part1 and 2 template

# SU_FIN2030_W4_A2_Part1 and 2 template - Part One...

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Assets Liabilities and Owner's Equity Cash \$240.00 Long Term Debt \$2,340.00 Accounts Receivable \$480.00 Equity \$3,456.00 Inventories \$720.00 Net P&E \$4,320.00 Total Assets \$5,760.00 Total Liabilities and owner's equit \$5,760.00 Required: Calculate Barbow’s after-tax weighted average cost of capital, using the data in the Barbow’s after-tax weighted average cost of capital = (2304/5760)*12%*(1-0.4) + (3456/5 weight of Debt* cost of Debt*(1-Tax Rate) + weight of Equity* cost of Equity Part Two: Final Project 3: Government Securities Part One: Quantitative Exercises Barbow Enterprises, Inc., is considering an expansion in their operations. One of th want to examine is their cost of capital. According to the accounting department, th and their respective costs have been identified: The cost of Common Equity : 15% The before tax cost of debt: 12% No Preferred stock They have also calculated the marginal tax rate to be 40% and the stock sells at its past two months) on government securities. Step 1: Go to a financial Web site to do your research. The following are three sugg you may use others. Be sure to cite your sources!

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