What debt-equity ratio is needed for firm to achieve cost

Assignment Help Financial Econometrics

Reference no: EM13333610

Central Systems, Inc. desires a weighted average cost of capital of 8 percent. Assume that there are no taxes, the firm has a cost of debt of 5 percent and a cost of equity of 10 percent. What debt-equity ratio is needed for the firm to achieve its targeted weighted average cost of capital?

Reference no: EM13333610

Questions Cloud

Explain a line bond structure for hydrogen phosphide : Sketch a line bond structure for hydrogen phosphide and designate the formal charges where applicable.

What percentage of the portfolio is invested in the stock : A risk-free asset currently earns 5.1 percent. The beta of a portfolio comprised of these two assets is 0.85. What percentage of the portfolio is invested in the stock

Advise the ceo of southern star ltd : Advise the CEO of Southern Star Ltd whether to accept or reject the order. Discuss the following issues that Southern Star Ltd will have to consider in deciding whether to accept or reject the order.

Explain a molecular compound that obeys the octet rule : A molecular compound that obeys the octet rule in which all atoms have a zero formal charge is a) BaCl2 b) BrF3 c) NCl3 d) XeF4

What debt-equity ratio is needed for firm to achieve cost : Central Systems, Inc. desires a weighted average cost of capital of 8 percent. Assume that there are no taxes, the firm has a cost of debt of 5 percent and a cost of equity of 10 percent.

Prepare the budgets for the quarter ending : Prepare the four budgets for the quarter ending 30 June 2013 only. (Show the total of the three months in these budgets only. Do not show the monthly figures. Round your numbers for these budgets up to zero decimal places):

Define greatest bond length least bond length : Use MO diagrams to place B2+, B2, and B2- in order of decreasing bond energy and decreasing bond length. A) Greatest bond energy Least bond energy B) Greatest Bond Length Least bond length

Determine the drills angular acceleration : A dentist's drill starts from rest. After 3.30 s of constant angular acceleration it turns at a rate of 2.0 x 10^4 rev/min. Find the drill's angular acceleration

What types of users would typically use a dml statement : You must begin by understanding the different types of SQL statements. Adhere to the following deliverables for this Discussion Board.

User Account

All Pages