What is the company wacc for equity fraction

Assignment Help Accounting Basics
Reference no: EM132608055

Question 1: A company's cost of debt is 0.03, and its cost of retained earnings is 0.12. If the company is financed only with debt and equity and it equity fraction is 0.9, what is the company's WACC?

Reference no: EM132608055

Questions Cloud

What is meant by content management systems : Explain what is meant by expert systems. Explain what is meant by content management systems.
Give the introduction in front of a mirror : Give the introduction in front of a mirror or in front of a friend. Try doing it in workout clothing or pajamas. Try it in business clothes.
Compare universalism and relativism with example : A common debate in ethics is universalism versus relativism of ethics and moral codes. A frequently asked question is "Does a universal moral code exist.
Describe five of the barriers and challenges employee : Describe five of the barriers and challenges that may exist that can prevent meaningful employee involvement in the development and implementation
What is the company wacc for equity fraction : Cost of retained earnings is 0.12. If the company is financed only with debt and equity and it equity fraction is 0.9, what is the company's WACC?
How much of the second year losses can Sharon deduct : In its second year of operations, ABC lost an additional $14,000. How much of the second year's losses can Sharon deduct in that year
Selection of leadership best practices : What additional perspective on above selection of leadership best practices, including any relevant experiences you have had that might
Why is product quality an important control mechanism : Why is product quality an important control mechanism?
How many customers are in ethical deli at any point in time : On average, how many customers are in Ethical Deli at any point in time?Ethical Deli is a small deli that specializes in ethically produced meats

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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