Find wacc of a company for long term debt

Assignment Help Financial Econometrics
Reference no: EM13333854

a company has 60% equity(common stock),30% longterm debt and 10% shortterm liabilities.The cost of equity(common stock) is 8%,while longterm debt is 6% respectively. use 35% corp tax rate.

Find WACC?

Reference no: EM13333854

Questions Cloud

How long does a car spend in the drive-through line : At the drive-through counter of a fast-food outlet, an average of 10 cars waits in line. The manager wants to determine if the length of the line is having any impact on potential sales
The average number of people waiting in line during lunch : A bank finds that the average number of people waiting in line during lunch hour is 10. On average, during this period, 2 people per minute leave the bank after receiving service. on average, hoe long do bank customers wait in line?
What is the number of turns on the coil : A toroid of mean radius 28 cm and circular cross section of radius 2.3 cm is wound with a superconducting wire of length 1000 m that carries a current of 430 A. What is the number of turns on the coil
How many interference fringes could be seen : A double slit has two slits of width 0.650 mm separated by a distance between centres of 2.340 cm. How many interference fringes could be seen under the diffraction central maximum
Find wacc of a company for long term debt : a company has 60% equity(common stock),30% longterm debt and 10% shortterm liabilities. The cost of equity(common stock) is 8%,while longterm debt is 6% respectively.
Tried only in federal court : State courts can deal with any number of federal questions with the understanding that they’re subject to review by a federal appeals court. Which of the following must be tried only in federal court?
Compare productivity at two facilities : A company that makes kitchen chairs wants to compare productivity at two facilities. At facility #1, six workers produced 240 chairs. At facility #2, four workers produced 210 chairs during the same time period. Which facility was more productive?
complement the business travel market : How do SMERF groups complement the business travel market?
Releasing protected health information : Summarize when covered entities may release protected health information only with a patient’s consent and when they may release it without consent, for each category: Government agencies, Legal agencies or representatives

Reviews

Write a Review

Financial Econometrics Questions & Answers

  Determine the firms optimal capital structure

A firm has established the following cost of debt and equity capital (withbankruptcy and agency costs) for various proportions of debit in its capital structures.

  Find the number of full payments needed

A debt of $4000 with interest at 12% compounded semi annually, is to be repaid by semi-annual payments of $400 each. Find the number of full payments needed and the final payment.

  Calculate and without assetwhat is the stock price for with

Consider two firms, With and Without, that have identical assets that generate identical cash flows. Without is an all-equity firm, with 1 million shares outstanding that trade for a price of $24 per share.

  Calculate inflation-adjusted principal at the end of month

Consider an investor who, on January 1, 2014, purchases a TIPS bond with an original principal of $101,000, an 10 percent annual (or 5 percent semiannual) coupon rate, and 12 years to maturity.

  What is the expected return on the firms equity

What is the expected return on the firm's equity before the announcement of the stock repurchase plan and what is the value of equity after the announcement of the stock repurchase plan?

  What advices would provide as to the option to pursue

The company's financial institution has offered a borrowing rate (cost of borrowing) of Prime + 2% and the co`s tax rate is 35%. The company can lease the equipment for $825,000 a year for four years

  What is the present value if the payments are an annuity due

Suppose you are going to receive $14,000 per year for 9 years. The appropriate interest rate is 11 percent.  What is the present value of the payments if they are in the form of an ordinary annuity

  Determine what is the yield to maturity of the bond

A Japanese company has a bond outstanding that sells for 94 percent of its ?100,000 par value. The bond has a coupon rate of 5.30 percent paid annually and matures in 15 years.

  What volume is required to provied a pre-tax profit

Assume that a specialy group has the following cost structure and that the group expects to perform 7,500 procedures in the coming year: Variable cost per procedure $25

  What was the value of bills ira at the end of 20 years

Bill makes annual deposits of $1900 to an an IRA earning 8% compounded annually for 20 years. At the end of the 20 years Bill retires. a) What was the value of his IRA at the end of 20 years

  Construct the balance sheet for gcp at the close of business

Construct the balance sheet for GCP at the close of business on Day 31. Remember, the employee's salaries will have been paid at the beginnings of the day for the previous 15 days of salaries they have worked

  How much will beverly have on december 31-2010

Every three months, she deposits $400 in her bank account, which earns 8 percent annually but is compounded quarterly. On December 31, 2007, she used the entire balance in her bank account

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