Target debt-equity ratio-what is the cost of equity

Assignment Help Financial Management

Reference no: EM131896728

Fyre, Inc., has a target debt−equity ratio of 1.35. Its WACC is 8.3 percent, and the tax rate is 35 percent.

If instead you know that the aftertax cost of debt is 3.8 percent, what is the cost of equity? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Cost of equity %

Reference no: EM131896728

Questions Cloud

Calculate the cost of equity using SML and DDM method : Calculate the cost of equity using the DDM method. Calculate the cost of equity using the SML method.

Best estimate of these bonds remaining life : What is the best estimate of these bonds remaining life?

According to the corporate valuation model : Corporate valuation-according to the corporate valuation model.

Non constant growth-what is value of the stock today : Nonconstant growth-If the required return on Computech is 15%, what is the value of the stock today?

Target debt-equity ratio-what is the cost of equity : If instead you know that the aftertax cost of debt is 3.8 percent, what is the cost of equity?

Using the arithmetic average growth rate in dividends : what is your best estimate of the company’s cost of equity capital using the arithmetic average growth rate in dividends?

Find the delta of the european put with strike price : Find the delta of the European put with strike price of $47.7826 and maturity of 2 years.

Coupon-paying bond and discount bond : Your sister recently purchased a 5-year coupon-paying bond (Bond A) and a 5-year pure discount bond (Bond B), both with YTMs of 9%.

Determine the initial number of shares in the delta-hedge : The risk-free interest rate is 0%. Under the Black-Scholes framework, determine the initial number of shares in the delta-hedge.

User Account

All Pages