Weights used in the calculation of BetterPie WACC

Assignment Help Financial Management
Reference no: EM132028907

BetterPie Industries has 7 million shares of common stock outstanding, 4 million shares of preferred stock outstanding, and 20,000 bonds. Assume the common shares are selling for $46 per share, the preferred shares are selling for $23.50 per share, and the bonds are selling for 98 percent of par. What would be the weights used in the calculation of BetterPie’s WACC? (Do not round intermediate calculations and round your answers to 2 decimal places.) Equity weight % Preferred stock weight % Debt weight

Reference no: EM132028907

Questions Cloud

What will be the firm operating cycle : Assuming that all of Tucker's sales are on credit, what will be the firm's operating cycle?
Weights used in the calculation of whackamole wacc : What would be the weights used in the calculation of WhackAmOle’s WACC?
Firm current capital structure weights for equity and debt : what are the firm's current capital structure weights for equity and debt respectively?
Market value is accounted for by debt-generated tax shield : How much of the firm's market value is accounted for by the debt-generated tax shield?
Weights used in the calculation of BetterPie WACC : What would be the weights used in the calculation of BetterPie’s WACC?
What is the project MIRR at WACC : A mining company is deciding whether to open a strip mine, which costs $2.5 million. What is the project's MIRR at WACC
What would be the company cost of capital : Dusit is financed 34% by debt yielding 8.4%. What would be the company’s cost of capital if it were exempted from corporate tax?
It expects to maintain this debt level into the far future : Establishment Industries borrows $740 million at an interest rate of 7.0%. It expects to maintain this debt level into the far future?
Identify potential government credit resources for venture : Identify potential government credit resources for venture. Prepare summary of benefits and risks of Jen and Larry’s continued use of credit card financing.

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate your portfolios new beta

Your retirement fund consists of a $7,500 investment in each of 20 different common stocks. The portfolio's beta is 0.95. Now, suppose you sell one of the stocks with a beta of 1.0 for $7,500 and use the proceeds to buy another stock whose beta is 2...

  Prepare a depreciation schedule for bow valley

Bow Valley Kitchens purchased new production-line machinery for a total of $44,500. The company expects the machinery to last 6 years and have a residual value of $2,500. Using the sum -of-the-year's digits method, prepare a depreciation schedule for..

  What are the pros and cons to technical analysis

What are the findings of whether followers of technical analysis can outperform the market? What are the pros and cons to technical analysis?

  Pension plan is annuity with guaranteed return

Your pension plan is an annuity with a guaranteed return of 4% per year (compounded quarterly). You can afford to put $1,800 per quarter into the fund, and you will work for 40 years before retiring. After you retire, you will be paid a quarterly pen..

  How much are you willing to pay for the investment today

If the required return on this investment is 9 percent, how much are you willing to pay for the investment today?

  Stock is traded on the new york stock exchange

Select a portfolio of common stocks in five companies whose stock is traded on the New York Stock Exchange (NYSE). Base your selection of stocks on your own personal willingness to take risks. Look up the beta of each company. Using equal weights, co..

  What is the current yield

The bond pays interest semi-annually, has a yield-to-maturity of 7.47 percent, and matures in 10 years. What is the current yield?

  Convert nominal annual rate of discount

Convert a nominal annual rate of discount of 4.7% compounded 4 times pear year into a nominal annual rate of interest compounded 4 times per year.

  Regulation of derivatives in the financial markets

Discuss the role of derivatives during the financial crisis in 2008 and 2009. Share your perspective on the regulation of derivatives in the financial markets.

  Calculate the annual equivalent cost of the project

Houston Metropolitan Water Utility Company purchased series of high-lift centrifugal pumps for aggregate sum of $250000. The cost of energy for operating these high-lift pumps in the water distribution system was $1.4 million for the first four years..

  What is diddys cost of equity

Diddy Corp. stock has a beta of 1.3, the current risk-free rate is 3 percent and expected return on the market is 12.50 %. What is Diddy’s cost of equity?

  What must the loan balance be if it is repaid after year 4

What must the loan balance be if it is repaid after year 4? What will be the yield to the lender if the loan is repaid at the end of year 4?

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