Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Cede & Co. expects its EBIT to be $55,000 every year forever. The firm can borrow at 7 percent. Cede currently has no debt, its cost of equity is 11 percent, and the tax rate is 35 percent. Assume the company borrows $153,000 and uses the proceeds to repurchase shares.
What is the cost of equity after recapitalization? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).) Cost of equity= %?
What is the WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)
Suppose we have a bond issue currently outstanding that has 15 years left to maturity. The coupon rate is 6% and coupons are paid semiannually. The bond is currently selling for $900 per $1,000 bond. What is the cost of debt?
How much would the firm have to sell? Which type of security (stocks or bonds) would it need to sell to accomplish this? Sell bonds and buy back stock
Another type of index is the geometric index. The calculation of a geometric index is similar to the calculation of a geometric return.
KADS, Inc., has spent $440,000 on research to develop a new computer game. The firm is planning to spend $240,000 on a machine to produce the new game. Shipping and installation costs of the machine will be capitalized and depreciated; The firm has a..
The risk-free rate is 5 percent and the expected return on the market portfolio is 9 percent. If a company has a beta of 0.90, what is the stock's expected rate of return according to CAPM?
What is the bond price if priced with the assumption that the call will be on the first available call? date?
An exchange rate is 0.7000 and the six-month domestic and foreign risk-free interest rates are 5% and 7% (both expressed with continuous compounding). What is the six-month forward rate?
(Cost of preferred stock) Your firm is planning to issue preferred stock. The stock is expected to sell for $98.64 a share and will have a $100 par value on which the firm will pay a 13.6 percent dividend. What is the cost of capital to the firm for ..
Assume the pre-tax profit of $50,000 has been earned by a business, and the owner/proprietor wants to withdraw all of the after-tax profit for personal use. Assume the tax rate for a C corporation is 34%, while the rate for a person is 27%. The aft..
You wish to convert your 2 million to a lifetime annuity which will provide you with a monthly payment for the rest of your life. You wish this payment to being one month after you fund your annuity. Annuity products are paying interest at 3% per yea..
You are constructing a portfolio of two assets, Asset A and Asset B. The expected returns of the assets are 8 percent and 13 percent, respectively. The standard deviations of the assets are 30 percent and 38 percent, respectively. What is the smalles..
Enter the cash flows for the bond on a timeline.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd