The habitat corporation has a wacc of 16 percent its cost

Assignment Help Finance Basics
Reference no: EM13483885

The Habitat Corporation has a WACC of 16 percent. Its cost of debt is 13 percent. If Habitat's debt-equity ratio is 2, what is its cost of equity capital? Ignore taxes in answer.

Reference no: EM13483885

Questions Cloud

The brisbane manufacturing company produces a single model : the brisbane manufacturing company produces a single model of a cd player. each player is sold for 210 with a resulting
In a typical month the bungee jump corporation receives : in a typical month the bungee jump corporation receives 100 checks totaling 90000. these are delayed six days on
Jane selects certain checks made out only with the initials : micro chip corporation mcc has a special po box for customer payment. jane is responsible for going to the post office
Economies of scale is the advantage that a larger fi may : economies of scale is the advantage that a larger fi may have over an smaller financial firm due to a drop in the
The habitat corporation has a wacc of 16 percent its cost : the habitat corporation has a wacc of 16 percent. its cost of debt is 13 percent. if habitats debt-equity ratio is 2
The markets required return suddenly rises to 7 what are : you have gathered the following data on three bondsbondnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbspnbsp
Lee provo is paid 20 per hour plus time-and-one-half for : lee provo is paid 20 per hour plus time-and-one-half for hours over 40 for a given week. during the week of january 21
What are the two reasons liquidity risk arises how does : what are the two reasons liquidity risk arises? how does liquidity risk arising from the liability side of the balance
Discuss the differences between economies of scale and : discuss the differences between economies of scale and economies of

Reviews

Write a Review

Finance Basics Questions & Answers

  How much cash would be freed-up

Its cost of goods sold is 75% of sales, and it finances working capital with bank loans at an 8% rate. Assume 365 days in year for your calculations.

  Sketch out a cvp analysis graph depicting the base

Now assume that the practice contracts with one HMO, and the plan proposes a 20 percent discount from charges.

  What is the after-tax cost of preferred stock

A firm is paying an annual dividend of $2.65 for its preferred stock which is selling for $57.00. There is a selling cost of $3.30. What is the after-tax cost of preferred stock if the firm's tax rate is 33%?

  The eoq is particularly sensitive to which of the following

The EOQ is particularly sensitive to which of the following?

  Marian kirk wishes to select the better of two 10-year

marian kirk wishes to select the better of two 10-year annuities c and d. annuity c is an ordinary annuity of 2500 per

  Time value of money concepts and present value

Assume a State of Maryland bond will pay $1,000 eight years from now. If the going interest rate on these 8-year bonds is 5.5%, how much is the bond worth today?

  Questions regarding elements of net working capital

questions regarding elements of net working capital and What would you suggest to fix the problem and How would it work

  Calculate roi and eva

ELN Waste Management has a subsidiary that disposes of hazardous waste and a subsidiary that receives and disposes of residential garbage.

  What is the current share price

If the required return is 12 percent and the company just paid a $2.65 dividend, what is the current share price? (Hint: Calculate the first four dividends.)

  Fauver enterprises declard a 4 for 1 stock split last year

fauver enterprises declard a 4 for 1 stock split last year andthis year its dividend is 1.10 per share. this total

  However companies are not required to have their bonds

companies pay rating agencies such as moodys and sampp to rate their bonds and the costs can be substantial. however

  Find the portfolio weights

Assumee the market portfolio has an expected return of 10% and a volatility of 20%, while Microsoft's stock has a volatility of 30 percent.

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