What is green paddle unlevered cost of capital

Assignment Help Financial Management

Reference no: EM131889775

The Green Paddle has a cost of equity of 17.3 percent and a pre-tax cost of debt of 6.4 percent. The debt-equity ratio is 0.45 and the tax rate is 34 percent. What is Green Paddle's unlevered cost of capital? Express your answer as a percent , with at least two digits to the right of the decimal. Do not include the percent sign, or any punctuation other than the decimal.

Reference no: EM131889775

Questions Cloud

Purchase of rfid fixed-asset tracking system : "An industrial engineer proposed the purchase of an RFID Fixed-Asset Tracking System for the company's warehouse and weave rooms.

What is the present value of the interest tax shield : The interest is paid semi-annually. What is the present value of the interest tax shield if the tax rate is 31 percent?

Growth mutual fund : At the beginning of each year, you deposit the following into a growth mutual fund that earns 6 percent per year:

Break-even level of earnings before interest and taxes : What are the earnings per share at the break-even level of earnings before interest and taxes?

What is green paddle unlevered cost of capital : The debt-equity ratio is 0.45 and the tax rate is 34 percent. What is Green Paddle's unlevered cost of capital?

What is the investor rate of return : The stock pays $0.85 per share dividend each year. If the stock is sold at the end of the year at $21 per share, what is the investor's rate of return?

Debt-equity ratio-what is the cost of equity : Douglass & Frank has a debt-equity ratio of 0.39. What is the cost of equity if the tax rate is 33 percent?

What recommendations do you have for tornado : Julius I. Tornado is the chief operating officer of Green Valley. One day last week he came to your office. What recommendations do you have for Tornado?

Determine joyces variable and fixed operating cost component : Joyce Murphy runs a courier service in downtown Seattle. Using the high-low method, determine Joyce's variable and fixed operating cost components.

User Account

All Pages