Compute weight of equity of firm-cost of equity of the firm

Assignment Help Financial Management

Reference no: EM132007882

Suppose a firm has 49.00 million shares of common stock outstanding at a price of $13.80 per share. The firm also has 410000.00 bonds outstanding with a current price of $1,056.00. The outstanding bonds have yield to maturity 6.31%. The firm's common stock beta is 2.33 and the corporate tax rate is 38.00%. The expected market return is 9.11% and the T-bill rate is 1.74%. Compute the following:

-Weight of Equity of the firm?

-Weight of Debt of the firm?

-Cost of Equity of the firm?

-After Tax Cost of Debt of the firm?

-WACC for the Firm?

Reference no: EM132007882

Questions Cloud

What is the net future value of machine : Assume your time value of money (MARR) is 7% annually, and this machine lasts 6 years.

What is the discounted payback period : What is the discounted payback period (decimal years) for an investment of $48,000 with an annual investment income of $6,000 starting

Define the types of ethical duties : Define the types of ethical duties Jeff, Joan, Martha, and Henry have to each other as owners of the company. What about as family members?

How can you reframe employees feelings about offshoring job : Are there newer theories beyond servant leadership, stewardship, or transformational leadership that might reframe employees and even OB?

Compute weight of equity of firm-cost of equity of the firm : Compute the Weight of Equity of the firm? Weight of Debt of the firm? Cost of Equity of the firm?

Real versus nominal gdp : Consider a simple economy that produces two goods: cupcakes and muffins. The following table shows the prices and quantities of the goods over a three-year.

Identify a principal-agent problem in your company : Identify a principal-agent problem in your company and evaluate the tools it uses to align incentives and improve profitability.

What percentage did the gdp of canada : By what percentage did the GDP of Canada increase from 1990 to 2000 in U.S. dollars?

What are the two main components of agreement : What are the 3 elements of a valid contractual offer? What are the two main components of agreement, the first element of a valid contract?

User Account

All Pages