Develop the weighted average cost of capital

Assignment Help Basic Computer Science
Reference no: EM131205815

Develop the Weighted Average Cost of Capital (WACC) for a business. 

Given the following inputs and assumptions, estimate the WACC for Gallo Distributors, Inc.:

  • Risk-free rate: 1%
  • Equity risk premium: 5%
  • Beta: .85
  • Size Premium: 6%
  • Company Specific Risk Premium: 1%
  • Pre-tax borrowing rate: 5.5%
  • Fair Market Value of Debt to Fair Market Value of Invested Capital: 20%

Reference no: EM131205815

Questions Cloud

Calculate the value of cash and marketable securities : Calculate the value of cash and marketable securities. (Use 365 days a year. Round your intermediate calculations and final answer to the nearest dollar amount.)
How would you respond to your partner : Your partner tells you that his wife is sick and he could really use that marijuana at home for medicinal purposes to help her with her pain. How would you respond to your partner?
Calculate the issue price of the bonds : First place LTD is authorized to issue $2 million of 4% 10 year bonds payable. On December 31, 2014 when the market interest rate is 8% the Company issues $1.6 million of the bonds. First place LTD amortizes bond discount by the effective interest me..
Distinguish between administrative staff and program staff : Distinguish between administrative staff, program staff, and custodial staff; and discuss the importance of each. Rank the four (4) types of power available to correctional staff in order of importance (one [1] being the most important, four [4] bei..
Develop the weighted average cost of capital : Develop the Weighted Average Cost of Capital (WACC) for a business. Given the following inputs and assumptions, estimate the WACC for Gallo Distributors, Inc.:
Determine the value of r resulting in maximum power : Determine the value of R resulting in maximum power to R and the maximum power to R.- Plot VR and IR versus R, and find the value of each under maximum power conditions.
Bond issue under each of independent assumptions : Complete the below table to calculate the price of a $2.0 million bond issue under each of the following independent assumptions (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided..
Aware of the potential increase in sales : Over the past decades, companies have become more aware of the potential increase in sales that may occur by extending products and services to foreign markets.
How do christian parenti and loic wacquant agree or disagree : How do these methods of social control differ from those used in the previous era of Fordism. How do Christian Parenti and Loic Wacquant agree or disagree on the role of the carceral system today?

Reviews

Write a Review

Basic Computer Science Questions & Answers

  Create a priority queue class called priqueue

Create a priority queue class called priQueue derived from the vector class. construct as a template class. priority queue needs to be based on a value from 1 to 10, any element outside the range of 1 to 10 should be given a value of 5.......

  A tail- recursive auxillary function

Write function choose(int n, int k) using a tail- recursive auxillary function to, compute n choose k without using the factorial function

  Sinusoidal wave is described by the equation v

Assume as sinusoidal wave is described by the equation v(t) = 100 v sin(200t + 0.52).    (a) From this expression, determine the peak voltage, the average voltage, and the angular frequency is rad/s.

  Identify the operating system

Based on the system and its operating system, please research the vendor and its website to identify any hardening guides and documents you may find.

  Draw a tree diagram that describes the call setup procedure

Draw a tree diagram that describes the call setup procedure.

  Compare different mobile and wearable devices

Compare Different Mobile and Wearable Devices Based on the Five CriteriaSubmit a comparison of the different kinds of mobile and wearable devices (for example, Apple iWatch, Fit Bit, MacBook, iPhone, iPad), their features and functionality, based on ..

  Determine the alignment to either classes or services

Using research and your own experience, identify two simple business problems that would best be solved with the use of classes and two simple business problems that would best be solved with services. What characteristics determine the alignment ..

  Network technologies to gain a competitive advantage

How could Denver B-cycle use other wired or wireless network technologies to gain a competitive advantage?

  An overview of wireless lan security

Write a term paper on the topic "An overview of wireless LAN Security" with the help of below references. This paper must contain citations and must be 2000-4000 words long.

  Passing variables between functions

What is a logical use for global variables? The choices are: 1. You don't have to keep passing variables between functions.

  Database schema for a customer sale

Database schema for a customer sale database scenario: customer(cust_id,cust_name) primary key(cust_id). Item(item_id,item_name,price) primary key(item_id)

  What does ioc stands for in .net framework

What does IOC stands for in .net framework?

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