What is the company wacc

Assignment Help HR Management
Reference no: EM131099209

Filer Manufacturing has 8.1 million shares of common stock outstanding. The current share price is $51, and the book value per share is $4. The company also has two bond issues outstanding. The first bond issue has a face value of $69.6 million and a coupon rate of 6.8 percent and sells for 108.5 percent of par. The second issue has a face value of $59.6 million and a coupon rate of 7.3 percent and sells for 108.5 percent of par. The first issue matures in 8 years, the second in 27 years.

Suppose the company's stock has a beta of 1.2. The risk-free rate is 2.9 percent, and the market risk premium is 6.8 percent. Assume that the overall cost of debt is the weighted average implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 35 percent. What is the company's WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Reference no: EM131099209

Questions Cloud

What is the horizontal force on the tracks : What is the horizontal force on the tracks?
The corresponding rightmost derivations for abab : We say a grammar is e-free if either it has no e-productions or there is exactly one e-production S -+ E and then the start symbol S does not appear on the right side of any production.
What is ethics and why is important in professional practice : SCS278 Ethics and Professional Practice Assignment. What is ethics and why is it important in professional practice? What is an ethical dilemma (ED) & why is focusing on EDs in practice crucial
Productions containing useless symbols from a grammar : A ,grammar symbol X is useless if there is no derivation of the form  That is. X can [lever appear in the derivation of some sentence.
What is the company wacc : What is the company's WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Firing occur to attain escape with a minimum value of dv : should the firing occur to attain escape with a minimum value of ΔV?
Productions containing useless symbols from a grammar : A ,grammar symbol X is useless if there is no derivation of the form  That is. X can [lever appear in the derivation of some sentence.
Manage risk and change risk exposure : Should firms hedge? A number of firms practice hedging and use derivatives to manage risk and change risk exposure. Some people argue firms should stick with their core business (i.e airlines should concentrate and on operating airlines).
Find ? as a function of r for motion with uniform radial : (This is an example of neutral stability. Any slight perturbation to the circular orbit will start the particle moving radially, and it will continue to move uniformly.) Find θ as a function of r for motion with uniform radial velocity v.

Reviews

Write a Review

HR Management Questions & Answers

  Improve problem solving capabilities within organization

Types of teams as to their effectiveness that will improve problem solving capabilities within organizations.

  Influence tactics help in reducing organizations politics

Explain the different types of influence tactics that will be of a help “if adopted” in reducing the organizational politics.

  Report on citigroup''s hr service level agreement

Human Resources or Human Resource Management deals with HR Service Level Agreement. HR Service Level Agreement is an agreement made between the employer and the employee, which states that the employee would work under any client and sometimes any ti..

  A project report on hrm

Human Resource Management as the name suggests, it is a management discipline which deals with the human i.e. the workforce aspect of organizations. Need and practices of HRM are inevitable in present scenario of extreme competition where "Talent War..

  Hrp: recruitment and selection

Recruitment and Selection is the initial ladder of any Human Resource Planning process and contains an immense significance for any organisation.

  A project report on study of statutory complainces

Statutory compliance and its immense knowledge are crucial to be understood in an organization. It contains all the forms, procedures and acts applicable in a company.

  Operant conditioning and Reinforcement

Operant conditioning is a learning process where behaviour is controlled by its consequences. In this process an individual's behaviour can be modified through the use of positive or negative reinforcement.

  Effectiveness of training programs in achieving customers an

The main motive for conducting this research is to provide broad range of research of the literature and their reviews related to training and development and assisting the employees in providing customers satisfaction.

  A critical analysis of hr processes and practices in fedex c

FedEx is illustrious for its novel HR processes and practices that have greatly accounted for its success.

  Integrating culture and diversity in decision making

People in the organization are known as Google where they share common goals and have common vision.

  Impact of employee attrition on people management in organis

Talent management implies recognizing a person's inherent skills, traits, personality and offering him a matching job.

  Labour dissonance at maruti suzuki india limited: a case stu

This Case Study focuses on various issues related to Labour Unrest at Maruti Suzuki India Limited.

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