KELLWOOD COMPANY
The market value of the firm is $546.9 million. The firm's cost of capital at market was 3.3 percent.

The probable costs of alternative forms of financing are as follows:

The recommended policy for an acceptable require return on investment (ROI) for investment in a subsidiary is an ROI equal to the probable cost of financing based on the issuance of new common stock. Within the context of this policy, the minimum ROI for the proposed investment will be eight-percent.

Part I [100 Percent Equity From Parent]

Pro-Forma Balance Sheets _______________Year_________________

Item _Beginning __First___ __Second__

Cash 6,000,000 733,200 1,000,000

Securities 5,240,000 7,188,828

Receivable 1,200,000 1,700,000

Inventories 1,400,000 2,000,000

Land 3,000,000 3,000,000 3,000,000

Building 17,000,000 17,000,000 17,000,000

(Res. Depr. - 340,000 - 680,000

Equipment 12,000,000 12,000,000 12,000,000

(Res. Depr.) __________ - 1,200,000 - 2,400,000

Total 38,000,000 39,033,200 40,808,828

 
 
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    Some topics in this essay  
 
    Kellwood Company | Net Inc | Date Price | Lease Revising | Bonds Revising | Income Stamt's | Res Depr | Question Based | Straight Bonds | Accounts Receivable | net inc | net income | 1540000 1540000 | _______________year_________________ item | common stock | kellwood company | value analysis | depreciation 1540000 1540000 | res depr | 17000000 17000000 | 3000000 3000000 | net inc 5 | _______________year_________________ item _ | net inc 4 | net inc 3 |  
   
 
 
 
   
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