What is green wave inc unlevered cost of capital

Assignment Help Financial Management
Reference no: EM131835275

Green Wave Inc. has $30M in debt, and $70M in equity (market values). You have estimated the firm’s cost of debt to be 4.50%, and the cost of equity to be 12.67%. The tax rate is 30%. Using Model 2, what is Green Wave Inc.’s unlevered cost of capital? Give the answer in percent to 2 decimal places (e.g., if the answer is 1.23%, give it as 1.23). No unlevered Beta.

Reference no: EM131835275

Questions Cloud

Return on your investment : How much do you have to invest today to have $20,000 in 10 years if you can get 6% return on your investment
Whats the future value of multiple annuities : Assume that you contribute $220 per month to a retirement plan for 25 years. Whats the future value of multiple annuities?
What is your firm free cash flow this year : Your firm has EBITDA of $10, depreciation of $2, interest expense of $2, and paid taxes of $1.50 this year. What is your firm’s free cash flow this year?
Compute the future value in year : Compute the future value in year 9 of a $3,300 deposit in year 1, and another $2,800 deposit at the end of year 5 using a 9 percent interest rate.
What is green wave inc unlevered cost of capital : Green Wave Inc. has $30M in debt, and $70M in equity (market values). what is Green Wave Inc.’s unlevered cost of capital?
Currently all-equity financed : Drew Inc. is currently all-equity financed, with a cost of equity of 8.00% and a 20% tax rate.
After taking into account reinvestment : After taking into account reinvestment, Elena receives a yield rate of 9.5%. Calculate X using both calculator built-in function and mathematical formula.
What is discount rate you are using to value this project : You do the math and decide you’d be willing to pay $3.44 to buy the project as an individual. What is the discount rate you are using to value this project?
Calculate the npv per machine of leasing the machines : You own a factory and are evaluating two options to replace your machines. Calculate the NPV per machine of leasing the machines.

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the firms weighted average cost of capital

You work for Maverick Manufacturing (MM) and the Vice President of Finance has asked your group to evaluate a firm they are considering acquiring, EDK Industries, a smaller competitor. Maverick Manufacturing issued 30 year bonds 3 years ago with a co..

  What is the days sales outstanding

Johnson Industries sells on terms of 3/10, net 30. Total sales for the year are $912,500. Forty percent of customers pay on the 10th day and take discounts; the other 60% pay, on average, 40 days after their purchases. What is the days sales outstand..

  Changes will make the value of stock go down

Which of the following changes will make the value of a stock go down, other things being held constant?

  Current financing mix and no sale of additional common stock

Calculate Costa's weighted average cost of capital assuming no change in the current financing mix and no sale of additional common stock.

  At the end of each year a self-employed person deposits

At the end of each year a self-employed person deposits $1,500 in a retirement account that earns 10 percent annually. How much will be in the account when the individual retires at the age of 65 if the contributions start when the person is 45 years..

  Calculate the option profit to the trader

It is July and a trader buys 100 December call options with a strike price of $26. The stock price is $26.51 and the option price is $4.12. At the expiration, the stock price becomes $30.22. Calculate the option profit to the trader. Please show your..

  Regarding tax treatment of payments to securities holders

Regarding the tax treatment of payments to securities holders, it is true that _____.

  Compute the adjusted present value

You are an analyst valuing Palm and Sun Industries for a possible acquisition. Compute the Adjusted Present Value.

  How might you use the same idea to value securities

How might you use the same idea to value securities, especially the stock of large publicly held companies? Is there a way to calculate a value that could be compared to the stock’s market price that would tell an investor whether it’s a good buy? (I..

  What are the typical stock price reactions

When one public company acquires another public company, what are the typical stock price reactions? Why does this happen?

  What is yield to maturity for these bonds

Blue Crab, Inc plans to issue new bonds, but is uncertain how the market would set the yield to maturity. What is the yield to maturity for these bonds?

  Land for to break even with your opportunity cost rate

You pay 1000 per acre for a tract of land and your opportunity cost is 7 percent. You hold the land 8 years and pay 100 in taxes each year. What price per acre must you sell the land for to break even with your opportunity cost rate?

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