Obtain estimate of Zynk cost of equity capital and WACC

Assignment Help Financial Management

Reference no: EM131926239

Zynk, Inc. is a privately owned firm, has a cost of debt capital of about 8.4%, which is the average cost of debt of its industry. The average equity beta in its industry is 1.35, and the average firm in the industry employs 1.5 times as much equity as debt. As represented on its balance sheet, Zynk has %250 million in debt and $950 million in equity. Obtain an estimate of Zynk's cost of equity capital and its WACC.

Reference no: EM131926239

Questions Cloud

What are the main objections to the use of payback : Ikaneng Pty (Ltd) is evaluating a project with the following cash flows: The initial investment is R6 250. The company has a required rate of return of 10%.

What is your current loan to value ratio : You purchased a property 4 years ago for $275,000 using a 75% LTV mortgage. The mortgage was a 15 year fully amortizing FRM with a 3.8% rate.

Create a critical review of influential paper : Create critical review of one of the most influential papers of recent years. Topic-A: YAGO2: A spatially and temporally enhanced knowledge base from Wikipedia

How much is the account worth at the end of the given years : Tara has $81 deducted from her paycheck at the end of each month and put into a savings account earning 9.1% interest compounded monthly.

Obtain estimate of Zynk cost of equity capital and WACC : Obtain an estimate of Zynk's cost of equity capital and its WACC.

What price should you expect to pay for the bond : If the current interest rate is 5% on comparable bonds, what price should you expect to pay for the bond?

What is the expected return on a stock with a beta : The total expected return on the entire stock market is 11.4 percent and U.S. Treasuries are yielding 3.3 percent.

What is the ph of the hf solution before titrant is added : A 35.00-mL solution of 0.2500 M HF is titrated with a standardized 0.1453 M solution of NaOH at 25°C.

What will be the value of your portfolio in january : You are ready to sell the shares but would prefer to put off the sale until next year for tax reasons.

User Account

All Pages