What is its cost of equity

Assignment Help Corporate Finance
Reference no: EM132209135

Question - A firm has a debt-to-equity ratio of 0.50. Its cost of debt is 12%. Its overall cost of capital is 16%. What is its cost of equity if there are no taxes?

A) 13%

B) 16%

C) 15%

D) 18%

Reference no: EM132209135

Questions Cloud

What is meant by above-average returns : What is strategy? Why is important? What is meant by "Above-Average returns"
Prepare and analyze each planned capital expenditure : The Genesis Energy operations management team, nearing completion of its agreement with Sensible Essential Consulting, was asked by senior management.
Why is communication important in change management : In your opinion, why is communication important in change management and what would happen if communication was not present during the change process?
Invasion of privacy when businesses use personal data : For ensuring minimum invasion of privacy when businesses use personal data. Which steps can be taken without, or with minimal, added cost?
What is its cost of equity : A firm has a debt-to-equity ratio of 0.50. Its cost of debt is 12%. Its overall cost of capital is 16%. What is its cost of equity if there are no taxes
Describe what is involved in corrective action : Describe what is involved in corrective action. Describe a plan of corrective action for this employ. Describe a plan of corrective action for this employee.
How stewardship is related to change management : In your opinion, how stewardship is related to change management, As a leader, what is the most important item to steward during change?
Description of how the succession plan biotech : A description of how the Succession Plan Biotech should be aligned with its mission and vision.
Examine ethical behavior within firms in relation : From the e-Activity, examine ethical behavior within firms in relation to financial management.

Reviews

Write a Review

Corporate Finance Questions & Answers

  Impact of the global economic crisis on business environment

This paper reviews the article of ‘the impact of the global economic crisis on the business environment' that is written by Roman & Sargu (2011).

  Explain the short and the long-run effects on real output

Explain the short and the long-run effects on real output, price, and unemployment

  Examine the requirements for measuring assets

Examine the needs for measuring assets at fair value in accounting standards

  Financial analysis report driven by rigorous ratio analysis

Financial analysis report driven by rigorous ratio analysis

  Calculate the value of the merged company

Calculate the value of the merged company, the gains (losses) to each group of shareholders, NPV of the deal under different payment methods. Synergy remains the same regardless of payment method.

  Stock market project

Select five companies for the purpose of tracking the stock market, preparing research on the companies, and preparing company reports.

  Write paper on financial analysis and business analysis

Write paper on financial analysis and business analysis

  Intermediate finance

Presence of the taxes increase or decrease the value of the firm

  Average price-earnings ratio

What is the value per share of the company's stock

  Determine the financial consequences

Show by calculation the net present value for the three alternatives (no education, network design certification, mba). Also, according to NPV suggest which alternative you advise your friend to choose

  Prepare a spread sheet model

Prepare a spread sheet model for the client that determines NPV/IRR with and without tax.

  Principles and tools for financial decision-making

Principles and tools for financial decision-making. Analyse the concept of corporate capital structure and compute cost of capital.

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