Average amount of debt

Assignment Help Finance Basics
Reference no: EM131493443

Suppose Microsoft has no debt and a WACC of 9.5 %. The average? debt-to-value ratio for the software industry is 7.1 %. What would be its cost of equity if it took on the average amount of debt for its industry at a cost of debt of 6.2 %?

Reference no: EM131493443

Questions Cloud

Describe a detailed treatment plan for sex offenders : Describe a detailed treatment plan for sex offenders that could be used as a model for this new program
What is? rogot''s pre-tax? wacc : Rogot Instruments makes fine violins and cellos. It has $ 1.4 million in debt? outstanding, equity valued at $ 2.9 ?million
Write or create your own code of ethics : You are to write/create your own "Code of Ethics". You can use other codes as a reference, such as NSPE, ACM, IEEE, ASME etc.
Small manufacturer of electronic research equipment : Lindsay Electronics, a small manufacturer of electronic research equipment, has approximately 7.300 items in its inventory
Average amount of debt : What would be its cost of equity if it took on the average amount of debt for its industry at a cost of debt of 6.2 %?
What is the amount of interest : What is the amount of interest/earned on $4000 deposited in a savings account with 4% interest compounded annually after 4 years?
Determine the closed-loop gain and noise figure : For the complementary stage shown in Fig., determine the closed-loop gain and noise figure if channel-length modulation is not neglected.
Determination of the market portfolio : How does this affect the central results of the CAPM and the determination of the market portfolio?
What are fosters reasons for thinking : In The Case of the Speluncean Explorers, Justice Keen emphasizes the obligation of the judiciary to faithfully enforce the law.

Reviews

Write a Review

Finance Basics Questions & Answers

  Probability of not selecting a senior who is female

In a statistics class there are 30 seniors and 28 juniors; 17 of the seniors are female, and 17 of the juniors are males. If a student is selected at random, what is the probability of NOT selecting a senior who is female?

  What are the main reasons that corporations may choose

What are the main reasons that corporations may choose to own real estate?- Why is the value of corporate real estate often considered "hidden" from shareholders?

  Would this affect the validity of your conclusion

Use the year-end total to evaluate the firm’s collection system. If 70% of the firm’s sales occur between July and December, would this affect the validity of your conclusion in part a? Explain.

  What would be the investment future value

What would be the investment ‘s future value in term of purchasing power if inflation occurs at 9% annual rate

  Explain how etfs are exposed to exchange rate risk

Describe international ETFs, and explain how ETFs are exposed to exchange rate risk.- How do you think an investor decides whether to purchase an ETF representing Japan, Spain, or some other country?

  Calculate the equity capital ratio

If $2 million in bad loans were removed from the bank's assests, show how the equity capital ratio would change.

  Find the payment

Can you please show me how to do this in ms Excel. Find the payment you would need to make per year at a discount rate (interest rate that the bank charges you) from 0% to 50% (51 answers), if you borrow $5,000,000 ($5 million) today (PV) and pay ..

  Describe some of the ways that the choice of accounting

describe some of the ways that the choice of accounting technique can temporarily depress or inflate

  Possible capital project using the npv method

The finance department of a large corporation has evaluated a possible capital project using the NPV method, the Payback Method, and the IRR method. The analysts are puzzled, since the NPV indicated rejection, but the IRR and Payback methods both ..

  What are three key features of common stock

What are three key features of common stock?

  Ensure an efficient financial system

What accounts and associated books and registers would you establish to ensure an efficient financial system and why? What strategies would you implement to minimise security risks to the financial system?

  Compare and contrast economic market and relevancy value

Explain the folIowing statement: "The methodology is systems analysis and the theoretical framework is the systems concept."

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd