What is the company''s wacc

Assignment Help Finance Basics
Reference no: EM131334016

Sixx AM Manufacturing has a target debt-equity ratio of 0.65. Its cost of equity is 15 percent, and its cost of debt is 10 percent. If the tax rate is 32 percent, what is the company's WACC?

Reference no: EM131334016

Questions Cloud

Describe the performance of a urinalysis : Describe the performance of a urinalysis, including equipment.
Which of these two bonds should the investor select : An investor in the 28% tax bracket is trying to decide which of two bonds to select: one is a 5.5% U.S. Treasury bond selling at par; the other is a municipal bond with a 4.2% coupon, which is also selling at par. Which of these two bonds should the ..
Blood through the heart and differentiate between pulmonary : Trace the pathway of the blood through the heart and differentiate between pulmonary, systemic, and cardiac circulation.
What is the company''s wacc : Sixx AM Manufacturing has a target debt-equity ratio of 0.65. Its cost of equity is 15 percent, and its cost of debt is 10 percent. If the tax rate is 32 percent, what is the company's WACC?
What are two most common minerals located in earths crust : 007525RR- What are the two most common minerals located in Earth's crust? What measurement best describes the results of a scientific experiment regarding volume?
Will adding the real estate fund improve your portfolio : Consider the Omega Fund and real estate fund of Example 11.13. Suppose you have $100 million invested in the Omega Fund. In addition to this position, how much should you invest in the real estate fund to form an efficient portfolio of these two f..
What is amount of the annual sales revenue that is requied : In working on a bid project you have determined that $245,000 of fixed assets will be required and that they will be depreciated straight line to zero over the 5 year life of the project. After considering all of the project's cash flows you have det..
Growing algae in big tanks : A company is growing algae in big tanks to make fish food. However, the algae is not growing very quickly and thy suspect either phosphorus, nitrogen, or iron is limiting. What could the company of to figure out which nutrient is limiting?

Reviews

Write a Review

Finance Basics Questions & Answers

  Explain basic characteristics of ordinary life policies

Briefly explain two basic characteristics of ordinary life policies. What are two limitation of ordinary life insurance? Describe two basic characteristics of variable life insurance

  Calculate the effective annual rate on the firm’s borrowing

The firm has borrowed $800,000 during the year under the agreement. Calculate the effective annual rate on the firm’s borrowing in each of the following circumstances: a. The firm normally maintains no deposit balances at Bank Two. b. The firm normal..

  Outstanding long-term debt

Outstanding long-term debt.

  How many shares will remain after the repurchase

Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answer to two decimal places.

  Compute the cost of direct materials used during the month

problem 1factory overhead for the praeger company has been estimated as followsnbspnbspnbspnbspnonvariable

  You want to buy a house for which the owner is asking

you want to buy a house for which the owner is asking 625000. the only problem is that the house is leased to someone

  What is the difference between a balloon loan and an amortiz

Most mortgage loans once had balloon payments; now most current mortgage loans fully amortize. What is the difference between a balloon loan and an amortizing loan?

  What is the projection for next year inventory

Use the "percent of sales method" of preparing pro forma financial statements to determine the projection for next year's inventory. Make the following assumptions: current year's sales are $24,500,000; current year's cost of goods sold is $15,925..

  In what respect is given statement misleading

A portfolio manager announces that the average of the returns realized in each year of the last 10 years is 20% per annum. In what respect is this statement misleading?

  Explain what each of given terms represents

Consider the right-hand side of the BlackScholes-Merton formula as consisting of the sum of two terms. Explain what each of those terms represents.

  Seger inc is an unlevered firm with expected annual

seger inc. is an unlevered firm with expected annual earnings before taxes of 32 million in perpetuity. the current

  Objective type of questions on bonds

Objective type of questions on bonds and calculate the duration on a bond with all of the same attributes as the bond in part

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