Changed to using a capital structure

Assignment Help Finance Basics
Reference no: EM131542745

DSF Company has a beta of 1.2. EBIT is 100. They currently have no debt. Find the new beta if they changed to using a capital structure that used 30% debt and 70% equity. The tax rate is 35%.

Reference no: EM131542745

Questions Cloud

Part of operating income : Would Rent income for a leasing subsidiary be considered part of operating income?
Sisyphean? company equity cost of capital : If the dividend payout rate is expected to remain? constant, then the expected growth rate in the Sisyphean? Company's earnings is closest? to:
Find the firm value and the wacc : Acme has EBIT of 100. This should continue forever. The tax rate is 40%. The cost of equity is 10%. Find the firm's value and the WACC if Acme uses no debt.
Present summary of the overall effectiveness : Present a 3-5-sentence summary of the overall effectiveness of the entity's online presence, the quality of the written communication used across
Changed to using a capital structure : Find the new beta if they changed to using a capital structure that used 30% debt and 70% equity. The tax rate is 35%.
Chance of embezzlement from employees : Do you think there is a greater chance of embezzlement from employees, whom can have an instrumental part in bottom-up budgets?
How you plan to get your new staff members up to speed : Describe how you plan to get your new staff members up to speed on your project.
Capital budgeting and dividend policy : We examined two very important topics in finance this week; Capital Budgeting and Dividend Policy.
Relationship between risk and expected return : The relationship between risk and expected return is typically described as linear (e.g. the Security Market Line or SML).

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the dilution in net tangible book value

ABC needs to increase $50 Million by issuing common stock in an IPO. ABC will use the proceeds to pay down 8 percent coupon debt. ABC right now has 20 million shares outstanding representing a book equity interest of 200 million.

  In the weight column assign an importance factor to each of

using the information gathered from your swot analysis conducted in unit ii create an efas table for the company you

  Mortgage amortization-standard mortgage rates

Consider a standard mortgage (360 months) with monthly payments and the  nominal rate (monthly compounding) of 5.70%. What portion of the payments during first 31 months goes toward interest?

  How the degree of operating and financial leverage

What is the relationship between business risk, financial risk, and beta (systematic or market risk).

  Write a literature review about finance in higher education

You will write a literature review describing the research articles. My topic about finance in higher education. I need 15 articles about that.

  What is the current share price

Gruber Corp. pays a constant $9 dividend on its stock. The company will maintain this dividned for the next 12 years and will then cease paying dividends forever. If the required return on this stock is 10 percent, what is the current share price?

  Prepare an income statement for virginia slim wear

Prepare an income statement for Virginia Slim Wear. (Input all amounts as positive values. Round EPS answer to 2 decimal places. Omit the "tiny_mce_markerquot; sign in your response.)

  Compute the conversion premium

Iowa Meat Packers, Inc. has a convertible bond quoted on the NYSE bond market at 85. (Bond quotes represent percentage of par value. Thus 70 represents $700, 80 represents $800, and so on.) The bond matures in 15 years and carries a coupon rate of 6½..

  Identify the face value and coupon rate of bond issues

Identify the face value, coupon rate, and maturity of each of the bond issues. Discuss some of the potential reasons that Georgia-Pacific may have had for deciding to call these bond issues early.

  What is the internal rate of return of a project

What is the internal rate of return (IRR) of a project that costs $45,000 if it is expected to generate $15,047 per year for five years?

  Maxine peru the ceo of peru resources hardly noticed the

maxine peru the ceo of peru resources hardly noticed the place of savory quenelles de brochet and the glass of corton

  Compute the percentage increase in profit

RealTimeService offers computer consulting, training and repair services. For the most recent fiscal year, profit was $230,000 as follows.

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