Average amount of debt for industry

Assignment Help Basic Computer Science
Reference no: EM131846345

Suppose Microsoft has no debt and a WACC of 9.2%. The average debt to value ratio for the software industry is 5%. 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%?

Your firm is financed 100% with equity and has a cost of equity capital of 12%. You are considering your first debt issue, which would change your capital structure to 30% debt and 70% equity. If your cost of debt is 7% what will be your new cost of equity?

Reference no: EM131846345

Questions Cloud

Can criminal justice be effective without policy : Describe the relationship between criminal justice policy and practice.Can criminal justice be effective without policy? Explain your answer.
What is the ?firm debt? ratio : Dearborn Supplies has total sales of $202 million, assets of $99 million, a return on equity of 33 percent, and a net profit margin of 7.4 percent.
What is the expected value of the stock at time : a. What is the expected value of the stock at time 15 (not including the time 15 dividend)?
What is the intrest earned : A company pays 10% rate of interest on 10.20million of outstanding debt with face value of 10.2million, the firms EBIT was 1.2million
Average amount of debt for industry : 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%?
Complete the myers-briggs personality test : Include a separate section for each letter of your personality type, as well as a section for discussing how the different aspects of your personality
Describe the ways in which financial statements : Describe the ways in which financial statements, financial calculations, and working capital are used in the organizational budget process
Discuss how to aviod sexual harassment : This will require a citation and reference but is not counted toward your three articles unless it is taken from one of the articles.
Drop-down menu that lists three famous places : A form using HTML5, CSS, and JavaScript® that has a drop-down menu that lists three famous places. When the user selects a place from the drop-down menu

Reviews

Write a Review

Basic Computer Science Questions & Answers

  Identifies the cost of computer

identifies the cost of computer components to configure a computer system (including all peripheral devices where needed) for use in one of the following four situations:

  Input devices

Compare how the gestures data is generated and represented for interpretation in each of the following input devices. In your comparison, consider the data formats (radio waves, electrical signal, sound, etc.), device drivers, operating systems suppo..

  Cores on computer systems

Assignment : Cores on Computer Systems:  Differentiate between multiprocessor systems and many-core systems in terms of power efficiency, cost benefit analysis, instructions processing efficiency, and packaging form factors.

  Prepare an annual budget in an excel spreadsheet

Prepare working solutions in Excel that will manage the annual budget

  Write a research paper in relation to a software design

Research paper in relation to a Software Design related topic

  Describe the forest, domain, ou, and trust configuration

Describe the forest, domain, OU, and trust configuration for Bluesky. Include a chart or diagram of the current configuration. Currently Bluesky has a single domain and default OU structure.

  Construct a truth table for the boolean expression

Construct a truth table for the Boolean expressions ABC + A'B'C' ABC + AB'C' + A'B'C' A(BC' + B'C)

  Evaluate the cost of materials

Evaluate the cost of materials

  The marie simulator

Depending on how comfortable you are with using the MARIE simulator after reading

  What is the main advantage of using master pages

What is the main advantage of using master pages. Explain the purpose and advantage of using styles.

  Describe the three fundamental models of distributed systems

Explain the two approaches to packet delivery by the network layer in Distributed Systems. Describe the three fundamental models of Distributed Systems

  Distinguish between caching and buffering

Distinguish between caching and buffering The failure model defines the ways in which failure may occur in order to provide an understanding of the effects of failure. Give one type of failure with a brief description of the failure

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