Calculate patrick wacc, The Patrick Company's cost of

Calculate patrick wacc

Assignment Help Finance Basics

Reference no: EM13287802

The Patrick Company's cost of common equity is 17%, its before-tax cost of debt is 11%, and its marginal tax rate is 40%. The stock sells at book value. Using the balance sheet below, calculate Patrick's WACC. Round your answer to two decimal places.

Assets Liabilities And Equity
Cash $???120
Accounts receivable 240
Inventories 360 Long-term debt $516
Plant and equipment, net 2,160 Common equity 2,364
Total assets $2,880 Total liabilities and equity $2880

Reference no: EM13287802

Questions Cloud

How long does it take for the second car to pass the first : What's the quickest way to approach this problem? A car is traveling at 80 km/h along the highway. How long does it take for the second car to pass the first

What are the required rates of return on the four stocks : At the time these betas were developed, reasonable estimates for the risk-free rate, RF, and the required rate of return on the market, R(Rm), were 6.5 percent and 13.5 percent, respectively.

Explain as tiltration and quantitative precipitation : when do we use melting point depression method to determine molecular mass vs. other methods such as tiltration and quantitative precipitation

Find the average power delivered to the tissues : A defibrillator consists of a 15.3-µF capacitor that is charged to 8.4 kV. What is the average power delivered to the tissues

Calculate patrick wacc : The Patrick Company's cost of common equity is 17%, its before-tax cost of debt is 11%, and its marginal tax rate is 40%. The stock sells at book value. Using the balance sheet below, calculate Patrick's WACC. Round your answer to two decimal plac..

Calculate the line parameters r-l- g and c for coaxial cable : Calculate the line parameters R', L', G', and C' for a coaxial linewith an inner conductor diameter of .5 cm and an outer conductordiameter of 1 cm, filled with an insulating material where μ =μ0, εr = 4.5, and σ =10-3 S/m.

What is evanec cost of retained earnings : The Evanec Company's next expected dividend, D1, is $3.25; its growth rate is 5%; and its common stock now sells for $32. New stock (external equity) can be sold to net $27.20 per share.

Across what potential difference did the positron travel : As a positron moves through a region of space, its speed increases from 2.80 106 m/s to 8.00 106 m/s. Across what potential difference did the positron travel

Explain the equilibrium will increase concerning the system : A reaction mixture contains 0.41 M I2, 0.27 M Br2 and 3.5 M IBr. Which of the following statements is TRUE concerning this system. I2(g) + Br2(g) 2 IBr(g) Kc = 1.1 × 102

User Account

All Pages