User Account

All Pages

Develop the weighted average cost of capital

Assignment Help Business Management
Reference no: EM131209561

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: EM131209561

Questions Cloud

What is company dividend yield : The Phillips Company paid total cash dividends of $166,600 on 34,000 outstanding common shares. On the most recent trading day, the common shares sold at $89. What is this company's dividend yield?
What is the proportion d of defective new cars : New cars sell for $14,000 each, and used ones for $2,000. If cars do not depreciate physically with use, what is the proportion d of defective new cars?
How much can chemical bank lend out because of transaction : If Chemical Bank is successful in getting Microsoft to convert a $2 million demand deposit to a Eurodollar deposit, how much can Chemical Bank lend out because of this transaction?
How much do the consumers value a non defective car : In the preceding question, assume that new cars sell for $18,000 and used cars sell for $2,000. If there is no depreciation and risk-neutral consumers know that 20 percent of all new cars are defective, how much do the consumers value a non defect..
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.:
Discuss how each of the risks can affect the project team : Identify some of the positive and negative risks associated with this project,and then rank these risks based on their level of priorities. Discuss how each of these risks can affect the project team.
Implement (simplified) ftp server and ftp client : CPSC-471, Fall 2015 - In assignment, you will implement (simplified) FTP server and FTP client. The client shall connect to the server and support uploading and downloading of files to/from server.
What is the minimum level of s that will achieve separation : Suppose that the signal is no longer available. Which kinds of job will be filled by which types of workers, and at what wages? Who gains and who loses?
Aware of the potential increase : 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.

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd