What debt-equity ratio is needed for the firm

Assignment Help Accounting Basics
Reference no: EM132598193

Question - Central Systems, Inc. desires a weighted average cost of capital of 8 percent. The firm has an after tax cost of debt of 5.4 percent and a cost of equity of 15.2 percent. What debt-equity ratio is needed for the firm to achieve its targeted weighted average cost of capital?

Reference no: EM132598193

Questions Cloud

Find the total increase or decrease in net income : Find The total increase or decrease in net income by replacing the current machine with the new machine (ignoring the time value of money) is
How that data would be validated and used for future studies : How do you factor in unforeseen events that may reduce the number of individuals in a fish population and how that data would
Compute net incremental cost the component : Paxton Company can produce a component of its product that incurs, Compute the net incremental cost or savings of buying the component.
Single copy of a dna sample : You are a forensic scientist who has been given only a single copy of a DNA sample that you wish to sequence.
What debt-equity ratio is needed for the firm : The firm has an after tax cost of debt of 5.4 percent and a cost of equity of 15.2 percent. What debt-equity ratio is needed for the firm
Determining the tropic of cancer : If you are standing on the band of latitude known as the Tropic of Cancer (23.5 degrees North), on how many days of the year
Two commonly used law office technologies : Identify at least two commonly used law office technologies. explain the main reasons why you think computer skills are essential for paralegal in law offices
Calculate contribution margin per pound for each product : Information about selling price per unit and variable cost per unit of each product, Calculate the contribution margin per pound for each of the three products.
Dialysis bag and a cell membrane : What are the similarities differences and between the dialysis bag and a cell membrane?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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