What is its? after-tax wacc

Assignment Help Financial Management
Reference no: EM131931818

AllCity, Inc., is financed 36% with? debt, 15% with preferred? stock, and 49% with common stock. Its cost of debt is 5.7%?, its preferred stock pays an annual dividend of $ 2.53 and is priced at $34. It has an equity beta of 1.11. Assume the? risk-free rate is 1.8%?, the market risk premium is 6.8% and? AllCity's tax rate is 35 %. What is its? after-tax WACC?

Reference no: EM131931818

Questions Cloud

What is the maturity risk premium for the two-year security : A 2-year Treasury security yields 9.5%. What is the maturity risk premium for the 2-year security?
Invested in treasury inflation protected security : You have invested in a Treasury Inflation Protected Security (TIPS) that has a par value of $1,000 and a coupon rate of 3.07%
Mutual funds provide reliable for information on mutual fund : Sources such as the Morningstar Mutual Funds provide reliable for information on mutual funds.
Selling price of this bond will the dollar return on bond : If the British pound depreciates by 5%, at what end of year selling price of this bond will the dollar return on the bond just equal 10%?
What is its? after-tax wacc : Assume the? risk-free rate is 1.8%?, the market risk premium is 6.8% and? AllCity's tax rate is 35 %. What is its? after-tax WACC?
One-year zero-coupon bonds and perpetuities : How much of its portfolio should it allocate to one-year zero-coupon bonds and perpetuities, respectively, if these are the only two assets funding the plan?
What is total rate of return on bond : Find the bond's price today and six months from now after the next coupon is paid. What is the total rate of return on the bond?
What is the rate of return to you as the equity investor : What will be the selling price of the company in three years. What is the rate of return to you as the equity investor
What is the real rate of return on investment : You recently purchased an investment that yields 8% per year. What is the real rate of return on this investment?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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