User Account

All Pages

Calculate the after-tax weighted average cost of capital

Assignment Help Accounting Basics
Reference no: EM132560116

Question - You have been advised that the cost of ordinary equity is 5%, preference shares is 7.5%, and the pre-tax cost of debt is 6%. The weight of preference shares is 25%, ordinary shares is 60% and the rest is debt. The tax rate is 30%. Calculate the after-tax weighted average cost of capital (WACC). Please answer as a decimal to 4 decimal places.

Reference no: EM132560116

Questions Cloud

Effect on the ad curve-as curve : Evaluate the effect on the AD curve, AS curve, LRAS curve equilibrium price level and equilibrium output.
Discuss about the fractional ownership : Write at least 500 words fractional ownership and it's relation to cloud computing. Use at lesat one example from another industry.
Calculate the cash flow degree of operating leverage : Calculate the Cash Flow Degree of Operating Leverage (DOL) of a firm with monthly fixed costs of $200,000, EBIT of $500,000
Calculate the expected eps : Compute and Calculate earnings per share under each of three economic scenarios before any debt is issued. Also calculate the expected EPS.
Calculate the after-tax weighted average cost of capital : You have been advised that the cost of ordinary equity is 5%, preference shares is 7.5%, Calculate the after-tax weighted average cost of capital
Why do you feel businesses must spend time and money : It is important to understand that humans and technology interact in all information systems. Why do you feel businesses must spend time and money.
How did you arrive at that warranty statement : What kind(s) of warranties will you put in place for the sale of your goods and/or services? How did you arrive at that warranty statement?
How can an american importer who has to pay : Suppose the spot rate today = $2/?1, How can an American importer who has to pay ?10,000 in three months hedge the foreign exchange risk?
Describe the most relevant reference group : Describe the most relevant reference group(s) and indicate the probable degree of influence on decisions

Reviews

Write a Review

Accounting Basics Questions & Answers

  At what amount should the gain from the sale

The prevailing rate of interest for a note of this type on January 1, 2017, was 9%. At what amount should the gain from the sale of the building be reported

  Cash flows using the direct method for operating cash flows

Payments to employees, $19,3008. Interest and dividends collected, $7,1009. Other operating payments, $90010. Proceeds from issuance of bonds, $11,30011. Payments of interest, $8,40012. Proceeds from sale of investments, $6,00013. Beginning cash bala..

  Prepare T-accounts in an Excel spreadsheet

Prepare journal entries for May and June 2019 transactions listed above (including any adjusting entries). Prepare T-accounts in an Excel spreadsheet

  Prepare financial statements for non-reporting entities

FNSACC404 ASSIGNMENT - PREPARE FINANCIAL STATEMENTS FOR NON-REPORTING ENTITIES. Why does Conrad Computers have to register for GST

  Tomas taco company receives a 60500 7-year note bearing

tomas taco company receives a 60500 7-year note bearing interest of 4 paid annually from a customer at a time when the

  Appropriate balance for the allowance for doubtful

What is the appropriate balance for the allowance for doubtful accounts at year end? Show how accounts receivable would be presented on the balance sheet.

  Name the most commonly reported nonrecurring item

Name the most commonly reported nonrecurring item and explain where and how it is reported on the income statement.

  Paid in capital from sale of treasury stock

Using the following accounts and balances, prepare the Stockholders' Equity section of the balance sheet. Sixty thousand shares of common stock are authorized, and 4,000 shares have been reacquired.

  Angela moss and autumn barber organize a partnership

Angela Moss and Autumn Barber organize a partnership on January 1. Moss's initial net investment is $75,000, consisting of cash ($17,500),

  Describing the potential management conflicts

Analyze at least three potential management conflicts that may arise due to the identified differences and propose solutions for each to help combat.

  How much will be in the account

If they invest $3,000 a year at 5% interest beginning on her first birthday, how much will be in the account when she reaches age 17

  On november 7 1997 the black and michael blue companys

on november 7 1997 the black and michael blue companys board of directors declared cash dividends of 75000. dividends

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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