What is primes debt-to-equity ratio

Assignment Help Financial Management
Reference no: EM13938387

Prime Inc. has an after-tax WACC of 10.58% (EAR). The company’s cost of equity is 13.4% (EAR) and its semi-annual coupon bonds have a yield-to-maturity of 7.8% (APR, semi-annually compounded). The tax rate is 35%. What is Prime’s debt-to-equity (D/E) ratio?

Reference no: EM13938387

Questions Cloud

Perpetual earnings before interest and taxes : Suppose Fox Wood Corp. (FWC) has perpetual earnings before interest and taxes (EBIT) of $10 million per year. Fox Wood’s unlevered cost of equity is 12%. FWC is subject to a corporate tax rate of 40%. It has $50 million in permanent debt in its capit..
Go to the web site for coca cola and locate : Go to the Web site for Coca Cola and locate the company's income statement under investor relations for the most recent year.
How is metabolic syndrome defined : Dr. Zamora feels that Larissa can achieve a BMI in the normal range if she changes her habits; Larissa feels that changing her behavior can only get her so far. Who is right?
Areas of opportunities for quality improvement : You are a process engineer at ZMD. One of your main responsibilities is to identify areas of opportunities for quality improvement. Recently, you have been researching alternative brands to the primer paint currently used.
What is primes debt-to-equity ratio : Prime Inc. has an after-tax WACC of 10.58% (EAR). The company’s cost of equity is 13.4% (EAR) and its semi-annual coupon bonds have a yield-to-maturity of 7.8% (APR, semi-annually compounded). The tax rate is 35%. What is Prime’s debt-to-equity (D/E)..
Describe current infrastructure-workflow and processes : Review the current state of the infrastructure and focus on a specific area: security, data management, connectivity, etc., and make suggestions for future improvements. Papers must address the following: 1. Clearly describe current infrastructure..
What diols would beproduced from the z and e isomers : The lab manual suggests that KMnO4 can oxidize an alkene into a diol before cleavage of the C-C bond. If the reaction was stopped at the diol stage (as suggested in Chapter 8 of Wade), what diols would beproduced from the Z and E isomers of 2-pentene..
Write a function that accepts a pointer to a string : Write a function that returns an Integer and accepts a pointer to a string as an argument. The function should count the number of characters in the string and return that number.
Power generation for a typical aircraft usage : Task 1: Carry out a detailed comparison between mechanical, fluid and electrical methods of power generation for a typical aircraft usage.

Reviews

Write a Review

Financial Management Questions & Answers

  Retained earnings using the percent of sales method

Ribbon Industries reported sales of $3 million and net income of $400,000 for 2010. The retained earnings balance at the end of 2012 is $7 million. Ribbon Industries has a dividend payout ratio of 30%. If sales are expected to increase by 25% next ye..

  Determine the? p-value for this test and critical? z-score

Consider the hypotheses shown below. Given that x overbar = 113, σ=25?, n=48, α=.10?, complete parts a and b. Upper H 0H0?: μ=119 Upper H 1H1?: μ ≠119. What conclusion should be? drawn? b. Determine the? p-value for this test. The critical? z-score(s..

  Offers employees choice between two health benefit plans

Ken and Maureen Blake have two children, with ages of 6 years and 5 months. Their younger child, Don, was born with a congenital heart defect that will require several major surgeries in the next few years to correct fully. Ken is employed as a sales..

  Units are expected to be sold

A company has $6.00 per unit in variable costs and $4.40 per unit in fixed costs at a volume of 50,000 units. if they company marks up total costs by 0.59, what price should be charged if 61,000 units are expected to be sold?

  Evaluate the impact on the budgeted statements

Familiarise yourself with the Anthonys Orchard company and its current situation; this can be done by exploring each of the tabs across the top of the screen in the Anthony's Orchard case study media.

  What is each bonds expected capital gains yield today

Use the following corporate bond quote information to answer the questions that follows. since this is a corporate bond, assume the company makes semi-annual coupon payments and also assume the bond matures on today's date in its maturity year. What ..

  Calculate the cost of common stock-after-tax cost of debt

Lang Enterprises is interested in measuring its overall cost of capital. Current investigation has gathered the following data. The firm is in the 40% tax bracket. The firm can raise debt by selling $1,000 par value, 8% coupon interest rate, 20 year ..

  Withdraws the entire amount and puts it in a mutual fund

At the end of each quarter, a 30-year-old woman puts $2000 in a retirement account that pays 6% interest compounded quarterly. When she reaches 55, she withdraws the entire amount and puts it in a mutual fund that pays 8.7% interest compounded monthl..

  Annual investments in a fund

Suppose you make 30 annual investments in a fund that pays 4% compounded annually. If your first deposit is $9,000 and each successive deposit is 4% greater than the preceding deposit, how much will be in the fund immediately after the 30th deposit?

  What is the forecasted return of this bond portfolio

Sioux Financial Corp. has forecasted its bond portfolio value for one year ahead to be $105 million. In one year, it expects to receive $10,000,000 in coupon payments. The bond portfolio today is worth $101 million. What is the forecasted return of t..

  Purchasing power parity-interest rate parity and cross rates

Choose a country (not the United States or Canada) that has not already been chosen by another learner and post your country choice in the discussion area. Then, identify some political and currency risks of that country and discuss why a U.S. compan..

  The yield curve almost always slopes upward

Over the last 5 years, the Russell small stock index has consistently out-performed the Russell large stock index. The S&P400 index is composed of the 400 largest stocks in the S&P500. The yield curve almost always slopes upward. An asset that last y..

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