Calculate the weighted cost of the capital

Reference no: EM13260557

Assume the following facts about a firm's financing in the next year. Calculate the weighted cost of the capital of this project:

Proportion of Capital Projected funded by debt = 45%

Proportion of Capital Projects Funded by equity = 55%

Return Received by Bondholders = 0.09

Return Received by Stockholders = 0.14

Note: write your answer to two decimal places.

Reference no: EM13260557

Questions Cloud

What is the payback period : The company anticipates cash flows of $430,386, $512,178, $562,255, $764,997, $816,500, and $825,375 over the next six years. What is the payback period?

What is the payback period for this project : This is expected to result in additional cash flows of $1,225,000 over the next 7 years. What is the payback period for this project? Their acceptance period is five years. Note: write your answer using two decimal places.

Determine the payback period for the project : A project requires an initial outlay of $100,000, and is expected to generate annual net cash inflows of $28,000 for the next 5 years. Determine the payback period for the project.

How many moles of mg(oh)2 and hno3 are present in reaction : A sample of 5.53g of Mg(OH02 is added to 25.0mL of 0.200 M HNO3. How many moles of Mg(OH)2, HNO3, and Mg(NO3)2 are present after the reaction

Calculate the weighted cost of the capital : Assume the following facts about a firm's financing in the next year. Calculate the weighted cost of the capital of this project.

What is the projects npv if the interest rate is 6 percent : What is the project's NPV if the interest rate is 6%?

What inductance is in series with the capacitor : An LC circuit with a 4.90 pF capacitor oscillates in such a manner as to radiate at a wavelength of 3.50 m. What inductance is in series with the capacitor

What is the expected return of your portfolio : What is the expected return of your portfolio if Cathy, Joy, and Sally have expected returns of 0.070, 0.150, and 0.150, respectfully? Note: write your answer to 3 decimal places.

Discuss how technology may impact the future : Discuss how technology may impact the future of the application and how technology may help with some of the user, social, and legal issues and Discuss how the application has changed over time in terms of its intended audience, purpose, concept, a..

User Account

All Pages