Calculate aristotle company weighted average cost of capital

Assignment Help Accounting Basics
Reference no: EM133039575

Question - Aristotle & Company has a target debt-to-equity ratio of 0.4 and a beta of 0.7 Aristotle & Company's pre-tax cost of debt is 9 and the 10-year Treasury currently yields 4.4%. The tax rate is 40% and you estimate the market risk premium is 6.2%. Calculate Aristotle & Company's weighted average cost of capital (WACC).

Reference no: EM133039575

Questions Cloud

Determine two production department factory overhead rates : A glove pattern is first stenciled onto leather in the Pattern Department. Determine the two production department factory overhead rates
Case study of nettech inc : NetTech is a small, hi-tech electronics company located in Huntsville, Alabama, and has been developing the basic components for a fiber-optic/wireless communic
Finding the human resources concern : In fact, when I performed a review of the eighth edition of the book I voted on including a chapter on emergent leadership-I guess Professor Northouse
What the total dividends and dividend per share : The shareholders's equity accounts of ABC corporation on December 31, 2020 are as follows: Share Premium P100,000. What total dividends and dividend per share
Calculate aristotle company weighted average cost of capital : The tax rate is 40% and you estimate the market risk premium is 6.2%. Calculate Aristotle & Company's weighted average cost of capital (WACC)
What is the annualized cost of the lrp cars : LR Power (LRP) cars cost more to buy initially, but they are expected to last for 10 years. What is the Annualized Cost of the LRP cars
Implementing forward systems acquisitions and development : What are some issues to your organization for implementing forward systems acquisitions and development,
Determine the decimal interest for each owner : LERA sells 20,000 (gross) BBL of oil at $62/BBL. The lease is burdened with a 1/8 Royalty Interest, Determine the decimal interest for each owner
What process should you undertake now : What process should you undertake now and what will this process tell you?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare the general journal entry to record

Prepare the general journal entry to record the employer's payroll liability

  Make an income statement down to the gross profit

Tamworth Trading Ltd is a company operating in the retail sector. Make an income statement down to the gross profit for Tamworth Trading Ltd for June

  Essay on the role of the endocrine system

Write a 350-to-500-word essay on the role of the endocrine system and its effects on behavior. Identify two hormones that influence behavior. Indicate which glands are responsible for secreting the hormones, the function of the glands in the endo..

  Additional share of stock were issued for cash prepare a

balance sheets at december 31assets20102009cash2464023040accounts receivable3218029400merchandise

  Determine the tax consequences to parrott abner and deanna

Determine the tax consequences to Parrott, Abner, and Deanna for 2016 if the notes are classified as debt and the notes are classified as equity.

  What type of strategy to you believe connor is pursuing

Based on this information, what type of strategy to you believe Connor is pursuing? Be sure to back up your claim with specific evidence

  Declaration of a liquidating dividend by a corporation

How would the declaration of a liquidating dividend by a corporation affect each of the following?

  Donnelly corporation manufactures and sells t-shirts

donnelly corporation manufactures and sells t-shirts imprinted with college names and slogans. last year the shirts

  What was alliances receivable turnover ratio

Cost of goods sold for the year was $450,000. What was Alliances's receivable turnover ratio for 2009

  Maximum amount of depreciation expense harris corp

What is the maximum amount of depreciation expense Harris Corp. can deduct in its second year of operation

  What would be the expected return on the stock

What would be the expected return on the stock if the expected market return increased to 22.00% while the risk-free rate and beta remained unchanged

  What rate of interest will she need to earn annually

She has $17,922 that she intends to invest for the 5 years. What rate of interest will she need to earn annually in order to accumulate enough to pay the debt

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