What debt ratio should binomial use to calculate its wacc

Assignment Help Finance Basics
Reference no: EM131862038

Binomial Tree Farm's financing includes $6.6 million of bank loans. Its common equity is shown in Binomial's Annual Report at $6.83 million. It has 520,000 shares of common stock outstanding, which trade on the Wichita Stock Exchange at $16.40 per share. What debt ratio should Binomial use to calculate its WACC or asset beta?. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Reference no: EM131862038

Questions Cloud

What is the price to buy the t bill : The face value is $100. What is the annual yield? What is the yield in 91 days? What is the price to buy the T Bill?
What are the implications for target marketing : Briefly explore the meaning of the data above - there is no need to employ a formal (chi-square) statistical analysis. What are the implications for target.
Healthcare organizations during strategic planning process : Discuss the importance of financial data and its impact on healthcare organizations during the strategic planning process.
Describe entitlement and block grant programs : Compare and contrast the three major government health insurances. Describe entitlement and block grant programs. How are these two programs different?
What debt ratio should binomial use to calculate its wacc : It has 520,000 shares of common stock outstanding, which trade on the Wichita Stock Exchange at $16.40 per share.
Number of architecturally beautiful office buildings : The Campus in Beaverton, Oregon is home to Nike’s World Headquarters. In addition to a number of architecturally beautiful office buildings,
Describe the research approaches : Identify any ethical issues Parsimonious should be concerned about as a city councilman making a recommendation to invest public funds.
What debt ratio should binomial use to calculate : What debt ratio should Binomial use to calculate its WACC or asset beta?. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 d
Calculate the effective annual rates : 2. Calculate the effective annual rates for each of the following cases: Stated Rate (APR) Number of Times Compounded Effective Rate (EAR)

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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