What is company wacc

Assignment Help Finance Basics
Reference no: EM133110223

The capital structure weights for a company are 85% equity and 15% debt. The company's after-tax cost of debt is 8% and its cost of equity is 16%. What is this company's WACC?

Reference no: EM133110223

Questions Cloud

Bob and carol to reach their financial goals : What amount needs to be saved at the end of each year in order for Bob and Carol to reach their financial goals?
How would the debt issue affect onefun : This project LIVE has expected 2 million dollar cash flow (after-tax) one year from now. This cash flow is expected to grow 1% annually forever.
Compute the book value of the asset at the end of year : The equipment is expected to be good for 5,000 hours over its useful life. Using the double-declining-balance method, compute the book value of the asset
Supply-supplier involvement important : Why is early supply/supplier involvement (ESI) important? What are the disadvantages of specifying by performance? What are the advantages?
What is company wacc : The capital structure weights for a company are 85% equity and 15% debt. The company's after-tax cost of debt is 8% and its cost of equity is 16%.
Ethical safeguards to take into consideration : When identifying a sample for research in your domain, what should be some ethical safeguards to take into consideration
Company cffa for 2019 : For 2019, a company's depreciation expense was $1,600,000, cash flow from operations was $14,000,000, and net capital spending was $6,800,000. During 2019, the
What is the financial accounting issue : Al Fareed Ltd. incurred $250,000 of costs for a new addition to their building on Spring Garden Road. What is the financial accounting issue
Investment portfolio outline : You are a portfolio manager in an investment company (can be a mutual fund, or a pension fund, hedge fund, private equity firm, or any you may imagine).

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the correlation corr between the two assets

The correlation between the factors is 0.25. What is the correlation Corr[r L , r M ] between the two assets?

  What was the key control weakness in the given case

Levon Helm was a kind of one-man mortgage broker. He would drive around Tennessee looking for homes that had second mortgages.

  Statistical technique that allowed the researchers

What is the statistical technique that allowed the researchers to accomplish and/or conclude in the study?

  Common law or the uniform commercial code

Determine if the contracts with the businesses will be governed by common law or the Uniform Commercial Code (UCC), and explain why.

  Different types of accruals for grantham landscaping

Please provide the proper journal entries for the two different types of accruals for Grantham Landscaping LLC. Please use accrual base accounting.

  Under the foreign commerce clause

Describe the U.S. government's power under the Foreign Commerce Clause and Treaty Clause of the U.S. Constitution.

  Calculate the total revenue dollars

Your hospital has following revenue for the month of July to September. If 30 percent of the month's revenue is collected in the same month, 40 percent is collected in the second month and 30 percent is collected in the third month.

  What is the current price of the bond

Suppose a German company has a bond outstanding with a par value of €1,000, 16 years to maturity, and a coupon rate of 4.7 percent paid annually.

  Which company would you expect to have higher current ratio

Which company would you expect to have a higher current ratio, a jewelry store or an online bookstore? Why

  Calculate firm weighted average cost of capital

A company has determined that its optimal capital structure consists of 45 percent debt and the rest is equity. Given the following information, calculate the f

  Marginal tax rate and the pre-tax cost of debt

Assume that the firm is in the 35% marginal tax rate and the pre-tax cost of debt for the firm is 9%?

  Assume a 5-year treasury bond has a coupon rate of 45 give

assume a 5-year treasury bond has a coupon rate of 4.5 give an example of required rates of return that would make the

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