What is pinder co cost of equity

Assignment Help Finance Basics
Reference no: EM133119594

Pinder Co's debt-to-asset ratio is 30%. The before-tax cost of debt is 8% and the corporate tax rate is 35%. If the after-tax weighted average cost of capital is 12%, what is Pinder Co's cost of equity? (Round to the nearest two digits)

Reference no: EM133119594

Questions Cloud

Calculate sharpe ratio for stock a and the market : Using the information in the table calculate information ratio. Assume that the idiosyncratic risk for stock A is 8.25 percent.
What annual rate of return will you realize : You plan to pay $50 for a share of preferred stock that pays a $2.40 dividend per year forever. What annual rate of return will you realize
Fairly compensated for the risk of the firm : 1. The risk free rate is 7%, the return in the market is 10%, and the beta is 1.30. What return must you receive to be satisfied that you are being fairly compe
About the education system : Research and read a peer-reviewed journal article about the education system in each of the following countries: Norway, Japan, Kenya, and Brazil.
What is pinder co cost of equity : Pinder Co's debt-to-asset ratio is 30%. The before-tax cost of debt is 8% and the corporate tax rate is 35%. If the after-tax weighted average cost of capital i
Should the provision for warranty be disclosed : Should the provision for warranty be disclosed/recognised as a contingent liability in the Notes to the Financial Statements
Explain the common stocks and average return : 1. You want to retire has a millionaire. How much do you need to put away each month if: (Current age 34)
Vygotsky sociocultural theory : Identify one similarity and one difference in Piaget's four stages of cognitive development theory and Vygotsky's sociocultural theory.
Explain three relevant and practical safeguards : Explain three (3) relevant and practical safeguards that BWH Partners or Ultra Glass Ltd could implement to reduce the threats

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculation of initial outlay for capital investment

1. Which of the following cash flows are NOT considered in the calculation of the initial outlay for a capital investment proposal?

  What is the yield to maturity of the? bonds

Springfield Nuclear Energy Inc. bonds are currently trading at ?$703.59 The bonds have a face value of ?$1,000?, a coupon rate of 1.5?% with coupons

  How to calculate the expected spot rate

The current spot rate is DKK5.60/$1.00 and the expected inflation rate is 3% in the U.S. and 2.5% in Denmark. also how to calculate the expected spot rate?

  Computing net foreign exchange bought

P.J. Chase Stanley Bank holds $77 million in foreign exchange assets and $69 million in foreign exchange liabilities. P.J. Chase Stanley also conducted foreign.

  What factors determine the amount of monopoly power

What factors determine the amount of monopoly power an individual firm is likely to have? Explain each one briefly.

  What is the amount of quick assets

Based on the following data, what is the amount of quick assets?

  Calculate the capitation rate per member per month

Outpatient diagnostic (Other than CTScan, MRI, Echocardiography, and Ultrasound): 300 visits per 1000 enrollees per year, the average cost is $150 per visit

  A stock that sells for less than $1 per share is called a

A stock that sells for less than $1 per share is called a

  What is the retailer''s effective cost of trade credit

A large retailer obtains merchandise under the credit terms of 1/15, net 45, but routinely takes 60 days to pay its bills. Given that the retailer is an important customer, suppliers allow the firm to stretch its credit terms. What is the retailer's ..

  Estimate the price of the asset using the approximation

an asset will provide cash inflows of 8000 in 4 years and 20000 in 10 years. the assert is currently priced at 5 annual

  What is the amount if you pay for the washing machine today

What is the amount if you pay for the washing machine today?

  Calculate the arithmetic average rate of return

You need to complete this problem in a spreadsheet and show all your work. Create an excel file that shows your calculations.

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