Calculate the WACC with tax rate

Assignment Help Financial Management
Reference no: EM132044222

The debt of this company is currently 60% of the total assets, the remainding capital structure is financed with common equity with a cost of 3%. The cost of the debt was $800,000 the entire $10,000,000 of the firm's liabilities. Please calculate the WACC with a tax rate of 40%.

Please do NOT answer on spread sheet.

Reference no: EM132044222

Questions Cloud

Should you stretch the accounts payable for this supplier : You are in charge of accounts payable decisions for a large retailer. Should you stretch the accounts payable for this supplier? Why or why not?
What is expected return on your portfolio : If you invest 35% of your holdings in a security with an expected return of 8%. what is the expected return on your portfolio?
What should the spot rate of US dollars for BPs : What should the spot rate of U.S. dollars for BPs be at the end of the year in order for the bank to earn a net interest income of $340,000
What is stanley net foreign exchange bought : What is P.J. Chase Stanley’s net foreign assets? What is P.J. Chase Stanley’s net foreign exchange bought?
Calculate the WACC with tax rate : The debt of this company is currently 60% of the total assets, Calculate the WACC with a tax rate of 40%.
What is citibank net foreign assets : What is Citibank’s net foreign assets? What is Citibank’s net foreign exposure? What is Citibank’s net foreign exchange bought?
What is the equipment after-tax salvage value : Karsted can sell the used equipment today for $5.25 million, and its tax rate is 40%. What is the equipment's after-tax salvage value?
Required investment-industries is considering expansion : Tannen Industries is considering an expansion. No, last year's expenditure is considered a sunk cost and does not represent an incremental cash flow.
The individual save each month in order to accomplish : How much must the individual save each month in order to accomplish his/her objective? Why is the amount saved less than the amount withdrawn?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the firm cost of equity

What is the firm's cost of equity using each of these three approaches?

  Explain the concept of arriving at aime

Explain the concept of arriving at AIME. How do you compute the PIA? Please, give examples. Explain the concept of Medicare Part D. Please, give an example of what is the “Donut Hole?”

  What is minimum amount should bid per share

what is minimum amount X should bid per share?

  What type of option is a healthcare insurance

What kind of behavior do you expect to see by healthcare providers and consumers based on the information above and for the different plan types?

  What is the net effect on sampson income taxes

Sampson has three capital transactions during the current year: What is the net effect on Sampson's income taxes if he is in the 35% income tax bracket?

  What is the present value of incentive

What is the present value of this incentive if you plan to work for the company for 42 years and the interest rate is 6.1 % ?(EAR)?

  Forward dollar-pound exchange rate for one-year maturity

Using parity conditions, what is the most likely forward dollar-pound exchange rate for one-year maturity?

  What was the firm dividend payout ratio

What was the firm’s dividend payout ratio in 2015?

  What is present value of perpetuity

What is the present value of a perpetuity of $ 5,000 that provides the first payment in 7 years? Your opportunity cost is 10%, compounded daily.

  Calculate npv of the project

The real discount rate is 8 percent. The corporate tax rate is 34 percent. Calculate the NPV of the project.

  The risk premium and financial risk premium

What is Old Air's asset (unlevered) beta? The Risk premium, Financial Risk premium?

  Compute your total dollar return on this investment

Suppose you bought 200 shares of stock at an initial price of $38 per share. Compute your total dollar return on this investment.

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