What is the companys wacc

Assignment Help Financial Management

Reference no: EM132032430

The total book value of WTC's equity is $14 million, and book value per share is $28. The stock has a market-to-book ratio of 1.5, and the cost of equity is 9%. The firm's bonds have a face value of $10 million and sell at a price of 110% of face value.

The yield to maturity on the bonds is 5%, and the firm's tax rate is 40%. What is the company's WACC?

(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) WACC %

Reference no: EM132032430

Questions Cloud

List eight elements of the total cost of ownership : List eight elements of the Total Cost of Ownership for computer hardware and software.

What is the original import price in british pounds : The base platform for the Toyota Tundra truck line is 1, 650.000. The spot rate of the Japanese yen against the British pound is 197/pound.

Calculate the incremental irr : The town of Drygulch has been flooding once per year for the last twenty years. Folks have pretty much accepted the damages it causes.

Find the level of b required to make the program a success : It generates benefits of B per year beginning in year one. These benefits decline by 0.2B each year, so that in the sixth year they are zero.

What is the companys wacc : The yield to maturity on the bonds is 5%, and the firm's tax rate is 40%. What is the company's WACC?

What about the ife : What about the IFE? Would the IFE be more likely to hold between the two countries? Explain.

Calculate the variance of a portfolio consisting toyota : Using these data, calculate the variance of a portfolio consisting of 50% Toyota and 50% Honda.

How does this change the price of the tundra to toyota : The spot rate of the Japanese yen against the British pound has recently moved from ¥195/ £ to ¥190 / £.

State the incremental rate of return : State the incremental rate of return between the 2 types of bridges, which one should be selected and why

User Account

All Pages