What is the company weighted average cost of capital

Assignment Help Accounting Basics
Reference no: EM133043740

Question - The Company B has $70M bank loans with interest rate of 9.5%. The Company also have $2.3M shares of common stock outstanding. The common stock has a Beta of 1.34 and sells for $40 a shares. The U.S. Treasury bill is yielding 3.8% and the return on the market is 11.2%. The coporate tax rate is 35%. What is the Company's weighted average cost of capital?

Reference no: EM133043740

Questions Cloud

What is breakevenpoint in units at current sales price : Question - Belton Company currently sells its products for $25 per unit. What is breakevenpoint in units at current sales price
Results of genetic testing : Problem: Suppose that a 25-year-old woman, whose mother and aunts all were afflicted with breast cancer by the time they were age 45, has a genetic test conduct
Prepare quarterly direct materials purchases budgets : Finished units of production require 6 pounds of raw material per unit. Raw material cost is $7 per pound. Prepare quarterly direct materials purchases budgets
What is the amount of revenue to be recorded for the year : Estimated total cost of contract for the 10 houses - $40,000,000; What is the amount of revenue to be recorded for the year by Bad
What is the company weighted average cost of capital : The U.S. Treasury bill is yielding 3.8% and the return on the market is 11.2%. The coporate tax rate is 35%. What is Company weighted average cost of capital
Prepare a training plan for a 10-minute skills : -Prepare a training plan for a 10-minute skills training session for line managers who may have to manage a grievance, conflict or dispute related to a request
Balancing the interests of global and local : Explain how balancing the interests of global and local, occupational and functional perspectives may play out in a compensation decision scenario.
Calculate the copy department costs allocated to sales : Assuming 5,640,000 copies were made during the year, 3,000,000 for sales and 2,640,000 for administration, calculate the copy department costs
Assignment on career development : Career Development in the workplace is typically focused on improving the employee's capabilities in their current position, or for career advancement.

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