Cost of equity be if the firm was all equity financed

Assignment Help Financial Management

Reference no: EM132053524

1. A firm has a debt-to-equity ratio of 0.52. Its cost of equity is 22%, and its cost of debt is 13%. If the corporate tax rate is 36%, what would it’s cost of equity be if the firm was all equity financed? (Answer in percentage terms. Round answer to 2 decimal places, do not round intermediate calculations)

2. The common stock of Margot, Inc. is selling for $65 a share. The par value per share is $1. Currently, the firm has a total market value of $93317. How many shares of stock will be outstanding if the firm does a 5-for-2 stock split? (Round answer to 0 decimal places, do not round intermediate calculations)

Reference no: EM132053524

Questions Cloud

What is the amount of the projected cash disbursements : What is the amount of the projected cash disbursements for accounts payable for Quarter 2 of the next year?

What is the price elasticity range : When ABC Corp. increases price from 1x to 1.2x and loses between 7 percent and 27 percent of volume, what is the price elasticity range?

What method would you use in given case : Write a two-to-three page paper in which you choose a specific characteristic of yourself (it can be a physical feature, an ability or a type of behavior).

Russia and china from an economic standpoint : What is a good introduction for Russia and China from an Economic standpoint?

Cost of equity be if the firm was all equity financed : If the corporate tax rate is 36%, what would it’s cost of equity be if the firm was all equity financed?

Firm uses its excess cash to complete stock repurchase : What will the new earnings per share be if the firm uses its excess cash to complete a stock repurchase?

What do we know about psychological disorders : The DSM identifies many specific psychological disorders. While research has found that in general, no one type of therapy is substantially better than others.

Reasons that the united states did not return to depression : What were the reasons that the United States did not return to depression times.

What is amount of annual interest tax shield : What is the amount of the annual interest tax shield if the tax rate is 33%?

User Account

All Pages