What is the company wacc

Assignment Help Finance Basics
Reference no: EM131898278

You are given the following information for Cleen Power Co. Assume the company's tax rate is 34 percent.

Debt: 5,000 6 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 103 percent of par; the bonds make semiannual payments.

Common stock: 320,000 shares outstanding, selling for $50 per share; the beta is 1.06. Market: 5 percent market risk premium and 4 percent risk-free rate.

What is the company's WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

WACC %

Reference no: EM131898278

Questions Cloud

What is the current price of a bond issued by dundee : What is the current price of a bond issued by Dundee International which pays a semiannual coupon rate of 6 8/9%?
Analyze the selected health care service provider : Analyze the selected health care service provider. Identify two services and products they provide to help with quality of care.
Estimating cost of equity using capm : Estimating cost of equity using CAPM (SML) - FORD MOTOR (F)
Update the project schedule and summarizing the status : Utilize the project management skill and update the project schedule and print a dashboard export, remaining work report, and Gantt Chart, etc.
What is the company wacc : You are given the following information for Cleen Power Co. Assume the company's tax rate is 34 percent.
Which five companies have been the biggest drag : Which five companies have been the biggest drag on the S&P 500's gains this year? Is now the time to buy these five? Why or why not?
How computer is valuable for many administrative functions : Discuss how the computer is valuable for many administrative functions and how it may also be a risk in terms of patient privacy and HIPAA compliance.
Expected total return if you re-invest all coupons : You expect to hold the bond until maturity. Calculate your expected total return if you re-invest all coupons at 5 percent.
How do i figure out the degree of operating leverage : Calculate Firm A's degree of operating leverage. How do I figure out the degree of operating leverage?

Reviews

Write a Review

Finance Basics Questions & Answers

  Holding period of calendar year

If the bond is selling for $850 on January 1. 2014, then what was your rate of return on this bond during the holding period of calendar year 2013?

  Perry organized cardinal corporation 10 years ago by

1. which statement if any is false?a. an s corporation is subject to the corporate amt.b. a high level of investment in

  What will the value of the bond l be

What will the value of the Bond L be if the going interest rate is 4%? Round your answer to the nearest cent.

  Refer to the template spreadsheet provided

Refer to the template spreadsheet provided.  Stock A has an annualized volatility equal to 18% for which you have just written an out-of-the-money 26 week call option.  The risk free rate is 2% per annum and the strike price is $100.  There is anothe..

  Problem regarding the product description

Using the WileyPlus resources, go to the "Forensic Accountants: Fraud Busters" example.

  Global finance-optimal financing-investment strategy

Employ foreign exchange and cost of capital data to determine appropriate capital sources. Please describe why and how you came to these conclusions. Also make sure to site sources.

  Searching for a job in finance

Imagine you have completed your bachelor's degree at Strayer and you are searching for a job in finance, accounting or business. Using various employment websites (i.e. Monster.com, Indeed.com, USAjobs.gov) find three (3) careers in finance that y..

  Construct the cash flow statement for the year 2014

Construct the cash flow statement for the year 2014 - Compute the financial ratios for the two years 2013, 2014 Total Asset Turnover

  Determine lowering your planned revenue numbers and the bons

December but the purchasing department left early for the holidays. This was no one's fault. The order came in the right after the first of the year, lowering your planned revenue numbers and the bonuses of your very deserving employees. It doesn't s..

  How many swing sets would have to be sold

The selling peice of the swing set is $1,000. How many swing sets would have to be sold for the firm to break even?

  Determine the wacc for the company

Determine the WACC for the company. Compute the NPV of the new project based on the free cash flows you calculated using WACC

  What is the effective rate on the bank loan

Neveready Flashlights, Inc., needs $300,000 to take a cash discount of 2/10, net 70. A banker will loan the money for 60 days at an interest cost of $5,500.

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