What is its cost of equity capital

Assignment Help Finance Basics
Reference no: EM131489166

Question: Habitat Corporation has a WACC of 16%. Its cost of debt is 13%. If Habitat's debt-equity ratio is 2, what is its cost of equity capital? Ignore taxes in your answer.

Reference no: EM131489166

Questions Cloud

Estimate the total value of both projects : Hospitality Uses and Mineral Leases Practice Problem Aiming to bring the most jobs and economic development to the county, the San Luis Obispo County Council.
What is the current price for the del monte bonds : what is the current price for the Del Monte bonds?
Creation of the personal computing estore : FIT5094 IT for Management Decision Making Semester 1, 2017 Assignment - Personal Decision Support. Creation of the Personal Computing eStore (PCeS)
What are the direct and indirect costs of bankruptcy : What are the direct and indirect costs of bankruptcy? Briefly explain each by providing examples.
What is its cost of equity capital : Habitat Corporation has a WACC of 16%. Its cost of debt is 13%. If Habitat's debt-equity ratio is 2, what is its cost of equity capital?
The yield to maturity on a bond is the rate : An annuity and The yield to maturity on a bond is the rate.
Explain why each of the theories is important : Explain why each of the theories is important. How do the theories impact supervisory practices? Support the theories with research.
Discuss legal principles of risk and this type of insurance : Final Paper: In your Final Paper, you will select and explain at least one of the following types of insurance (listed below) and provide an appropriate.
What did the supreme court devide in bell v wolfish : What did the Supreme Court devide in Bell v. Wolfish? What role does gang play in the Illinois correctional system (jail and prison)?

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine the maturity risk premium for the thirty-year bond

If inflation is expected to average 1.5 percentage points over both the next ten years and thirty years, determine the maturity risk premium for the thirty-year bond over the ten-year bond.

  What are advantage and disadvantage of using preferred stock

What is the component cost for Coogly's preferred stock? What are the advantages and disadvantages of using preferred stock in the capital structure?

  What is the purpose of computing a moving-average line

What is the purpose of computing a moving-average line for a stock? Describe a bullish pattern using a 50-day moving-average line and the stock volume of trading. Discuss why this pattern is considered bullish.

  Shareholder benefit from stock split

Determine which of the following is most probable way in which a shareholder will benefit from a stock split?

  Capital budgeting and capital structure

Capital Budgeting and Capital Structure

  Examine the strategy of international diversification

Evaluate whether to invest the entire foreign bond allocation in euro-denominated bonds or reallocate the money to US bonds over the next year on the assumption that Euro-denominated bonds are paying a 4.5% interest rate versus USD denominated bon..

  What is pretax cost of debt

If cost of equitey is 14%, what is pretax cost of debt?

  Has your organization traditionally placed more importance

When considering the implementation of a new change, has your organization traditionally placed more importance on internal or external drivers? Do you agree with this or not?

  Investment alternatives including diversified asset mix

assume that you recently graduated with a major in finance and you landed a job as a financial planner with a large

  As much as any other field of study the field of finance is

as much as any other field of study the field of finance is based on the assumption that people will behave rationally

  In what ways does the budgeting process lend itself

In what ways does the budgeting process lend itself to political control of administrative policymaking by the executive and legislative branches of the government?

  Options provides a higher rate of return

Assume the "going rate of interest" is currently 7.0%. All else equal, which of these two options provides a higher rate of return?

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