User Account

All Pages

What is company wacc

Assignment Help Finance Basics
Reference no: EM133068508

A company's capital structure consists of 40% debt and 60% equity. The before-tax cost of debt is 8.125%, the cost of retained earnings is 12%, and the tax rate is 35%. What is this company's WACC (round your answer to two decimal places)?

Reference no: EM133068508

Questions Cloud

Equity from the sale of new common stock : What is the Adjusted Net Present Value (ANPV) criterion for deciding whether to go ahead with a project? What is the Weighted Average Cost of Capital (WACC) alt
What is the average duration of all the assets : The following balance sheet information is available (amounts in thousands of dollars and duration in years) for a financial institution:
Should dropit fast replace the equipment-car : Asuming straight-line depreciation, a 34% effective tax rate, and a cost of capital (i.e. discount rate) of 12%, should DropIt Fast replace the equipment/car
What is the cost of internal common equity : What is the cost of internal common equity if the long-term growth of dividends is projected to be 4% indefinitely (round your answer to two decimal places)?
What is company wacc : A company's capital structure consists of 40% debt and 60% equity. The before-tax cost of debt is 8.125%, the cost of retained earnings is 12%, and the tax rate
Record the sale under two different assumptions : Record the sale under two different assumptions: (a) the shares sold for $46,400, and (b) the shares sold for $43,100
What is relevant cost of debt financing : If the firm's tax rate is 40%, what is relevant cost of debt financing to this company (round your answer to two decimal places)?
What are financial ratios : 1. Identify the types of financing that are typically used during each stage of the successful business enterprise life cycle.
Explain 360-degree best practices and implementation plans : Explain 360-degree best practices and implementation plans. Explain how you will use feedback with your own employees in your future career.

Reviews

Write a Review

Finance Basics Questions & Answers

  Standards necessary for competing in the modern market

Is certification under the ISO standards necessary for competing in the modern market? What should companies consider when deciding whether to become certified?

  Why does the market value of the claim

Why does the market value of the claim on the assets of a company equal the market value of the assets

  Estimate of the expected rate of return on the stock

Suppose that two factors have been identified for the U.S. economy: the growth rate of industrial production, IP, and the inflation rate, IR. IP is expected to be 4%, and IR 3.5%. A stock with a beta of 2.0 on IP and 1.2 on IR currently is expected t..

  What would the payment be in given case

A debt of $12000 due in 10 years from now is to be paid by a payment of $1000 now, $1000 in 2 years and a final payment 8 years from now.

  Bond price in dollars and percentage terms

The new appropriate discount rate will be 7.1 percent. What will be the change in the bond's price in dollars and percentage terms?

  What amount will you have to deposit today to fund

What amount will you have to deposit today to fund this deferred annuity? Use an 8% discount rate and round your answer to the nearest.

  Which of terms of trade credit is the more expensive

Which of the following terms of trade credit is the more expensive?

  Compute risk and return measures for barnes and noble

compute risk and return measures for barnes and noble standard deviation beta against sampp 500 and 2. estimation and

  Explain how manufacturing has evolved

What are the similarities and differences between lean and agile supply chain strategies? - Explain how manufacturing has evolved.

  What is the bond price if the market interest rate increase

Bond valuation) Assume that Barclays Plc. issued coupon bonds with fixed coupon rate 5 percent redeemed at par (£100) in 5 years.

  Changes in exchange rates

Virtually every operation of the MNC can be influenced by changes in exchange rates. Identify and describe at least four of the corporate finance functions (from our readings) for which exchange rate forecasts could be necessary. Your essay should..

  What is intc''s cost of equity

If the beta of INTC stock equals 1.6, the risk-free rate equals 6 percent, and the expected return on the market portfolio equals 11 percent, what is INTC's cost of equity?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd