What are the weights in equity and debt

Assignment Help Financial Management

Reference no: EM131545116

1. The book value of equity of a firm is $59 million and the market value of equity is $61 million. The face value of debt of the firm is $99 million and the market value of debt is $83 million. What is the market value of assets of the firm?Give answer in millions without commas or dollar signs. Do not include the words millions. For example, write '$34 million' as 34

2. The total market value of General Motors (GM) is $10 billion. GM has a market value of $7 billion of equity and a face value of $10 billion of debt. What are the weights in equity and debt that are used for calculating the WACC?

3. The outstanding debt of Home Depot has a yield to maturity of 0.03. The tax rate of Home Depot is 0.35. What is the effective cost of debt of Home Depot?

Round to four decimal places. Give answer in decimal form without commas or dollar signs.

Reference no: EM131545116

Questions Cloud

Define the current stock price : The risk-free rate is 4.1 percent, and the stock will pay a dividend of $2.20 in three months. What is the current stock price?

What constant rate is the stock expected to grow after year : At what constant rate is the stock expected to grow after Year 3?

Cash flow be under the proposed capital structure of firm : What will Allison’s cash flow be under the proposed capital structure of the firm?

What is discounted payback period and profitability index : The required return is 10% and the required payback is 4 years. What is the discounted payback period? What is the profitability index?

What are the weights in equity and debt : What are the weights in equity and debt that are used for calculating the WACC?

Describe a realistic change that could be made to address : Identify a problem, inefficiency, or issue within a specific department/unit. Describe a specific, realistic change that could be made to address the issue.

Why people sometimes turn away from evidence-based medicine : Why do people sometimes turn away from evidence-based medicine and scientifically trained experts in the treatment of their health?

Why did the women take an unknown substance : Find a family that has been affected by DES and write their story. Why did these women take an unknown substance?

Provide some ideas on how you would design such training : How could it have been improved? If you have never received HazCom training, provide some ideas on how you would design such training.

User Account

All Pages