What is marc wacc

Assignment Help Business Management
Reference no: EM132812918

Suppose Marc Technologies has an equity cost of capital of 8%, market capitalization of $6.8 billion, and an enterprise value of $10.2 billion. Suppose Marc's debt cost of capital is 4.1% and its marginal tax rate is 25%.

a. What is Marc's WACC?

b. If Marc maintains a constant debt-equity ratio, what is the value of a project with average risk and the following expected free cash flows?

c. If Marc maintains its debt-equity ratio, what is the debt capacity of the project in part (b) every year (0,1,2 and 3)?

d. What is the unlevered value of the project?

e. What is the interest tax shields from the project every year (1,2 and 3)? What is their present value?

f. Show that the APV of Marc Technologies' project matches the value computed using the WACC method (in question b).

Reference no: EM132812918

Questions Cloud

How does given impact data management within organizations : How do trustworthy and ethical leaders enhance knowledge sharing in organizations? How does this impact the rate of information technology implementations?
Find how many scoreboards should fair score company produce : The company has enough beginning inventory of direct materials to produce 8,000 units. How many scoreboards should Fair Score Company produce in 2018?
What amount of money will Mr S accepts from the creditor : What amount of money will Mr. S accepts from the creditor on June 1, Y to settle a debt of 8,500 due on July 1, Y + 5, if the discount rate is 5%
Calculate the output of firm : Calculate the output of each firm, the market output, and the market price in a Nash-Cournot equilibrium
What is marc wacc : Suppose Marc Technologies has an equity cost of capital of 8%, market capitalization of $6.8 billion, and an enterprise value of $10.2 billion. Suppose Marc's d
What methods are most effective in addressing the risks : Many organizations use password-based authentication to authenticate their users. Passwords that do not meet criteria can be placed in a vulnerable state.
Find what is the net present value of the investment : Find What is the net present value (rounded to the nearest thousand) of the investment assuming the required rate of return is 10 percent?
Research use for chatbot : Research a use for a chatbot. What are the limitations? What are the benefits? Can an organization rely solely on a chatbot? Explain why or why not?
Explain the concept of going concern : Explain the concept of going concern, and list four indicators that can suggest that the going concern assumption may be at risk

Reviews

Write a Review

Business Management Questions & Answers

  Major advantages that global companies

From the second e-Activity, examine two (2) instances when multinational companies have used offensive or defensive competitive strategies. Determine the major advantages that global companies would have over domestic competitors in sustaining com..

  Describe methods used to assess the behaviors and

lengthnbsp8-10 total slides with speaker notes of 200-250 words per slide excluding title and reference slide. eplain

  Asian american in position of power in corporations

Conduct research to find an Asian American in a position of power in corporations, politics, or universities.

  Restaurant restore customer goodwill

Which of the following practices will help the restaurant restore customer goodwill?

  What business formation would you use

Many of us have thought about starting our own business. If you started a business, what business formation would you use: sole proprietorship, partnership, LLC, corporation, etc.? Why? 150 words minimum.

  Determining the management and motivation

Management and Motivation: Discuss the following topic: Motivation is something internal and cannot be affected by management.

  List and briefly identify the seven foundation competencies

List and briefly identify the seven foundation competencies that are needed by individuals to be successful in most professional and managerial positions.

  Do you think corporate social responsibility is important

In doing so, think about what seem to be its reasons for being socially responsible. Is it pragmatic, ethical, strategic, or some combination? Can you identify its key stakeholders?

  Assignment-the ecological footprint

Determining your individual Ecological Footprint will help begin to analyze and determine what personal steps you can take to live greener.

  Expectancy theory

Eddie Burns is the accounts manager of Avatar? Inc., and a very optimistic person. He knows what he wants from his subordinates and believes that they will always do their best to get the work done.? Eddie's behavior is consistent with the? ______..

  Labor market regulatory authority

Failure is a great teacher-Demonstrate a systematic and evidence-based approach to identifying a government failure, which includes assessing impact on outcomes

  Considerations in building a security risk framework

Upon reviewing this weeks lecture and how concepts were applied to a Global Risk Model, what did you take away as one of the most important considerations

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