Interest of notes is 6%, bonds payable 4%, preferred stock dividends are 5% and the common shareholders opportunity cost is 10%. The tax rate is 25%.
Compute the average weighted cost of capital. You may want to calculate your answer using Excel, and paste the solution into the solution window.
12. Cost of goods sold is $2,500,000 and inventory is $600,000. Calculate the days on-hand.
Sales on account are $6,000,000, and accounts receivable are $2,000,000. Calculate the days outstanding.
13. Cost of goods sold is $2,500,000, and accounts payable are $450,000. Compute the days in accounts payable.
14. Using the information from the previous two questions, compute the cash conversion cycle