Determine the cost of capital for the company

Reference no: EM13563817

A new space age development corporation in wichita kansas has borrowed a sum of $4M from a friendly bank at an interest rate of 9%. the company has also borrowed another $1M from other sources at an interest rate of 8%. additionaly the owners have invested a sum of %5M in the businness with the intention of earning a 15% return on the invesment. determine the cost of capital for the company (WACC= weighted average cost of capital)

Reference no: EM13563817

Questions Cloud

Determine the maximum shear stress : Water flows through a 200 m long ,30 cm diameter steel pipe with surface roughness 0.046 mm at a rate of 0.25 m^3/s .Find the pressure(P2)considering both friction and minor losses if P1=500 kPa;Z1=20m; Z2=10m ; L=200m ; K=10.0 ; D=30 cm?

What is the average velocity of the body for the time : What is the average velocity of the body for the time interval, t = 0 and the time that it crosses the X-axis?

Determine the difference between the pressure is acting : Shaquille O Neal, who is listed as 7`1" tall is out of the NBA Playoffs and so has time to visit is pool. If he stands vertically in the water, completely submerged, determine the difference between the pressure is acting at his head and at his toes,..

Determine the height of the building in feet : The basic barometer can be used to measure the height of abuilding. If the barometric readings at the top and at the bottomof a building are 28.7 and 29.7 in Hg, respectively, determine the height of the building in feet. Assume an average density of..

Determine the cost of capital for the company : A new space age development corporation in wichita kansas has borrowed a sum of $4M from a friendly bank at an interest rate of 9%. the company has also borrowed another $1M from other sources at an interest rate of 8%

Describe the problem of lack of coordination between design : Describe the problem of lack of coordination between design and construction in a traditional contract.In agency CM,what expertise does the CM provide during the pre-design and design phase?

Determine if the process is possible from the second law : Steam at 800kpa and 300 degree celsius exists in the large supply line. when the valve opened from the large supply the steam enters into an empty, evacuated tank with a volume of 0.3m cube

What is the offset at the midpoint on the curve : A vertical curve with grade1= 3.6% meets the exit grade of -4.7% at PVI located at station 26.50. A vertical curve of 700 feet is propsed to provide the transition between the two grades

Calculate the loss of pressure which will occur in the pipe : An 180 m long 100 mm diameter compressed air pipeline is to be run from a stationary compressor to an air-track drill which requires a flow of 780 l/sec. The pipeline contains 2 large radius bends (R=2d) ,and 4 half closed gate valves.

User Account

All Pages