User Account

All Pages

What is the cost of equity

Assignment Help Finance Basics
Reference no: EM132791023

Matroyshka, Inc., has a target debt-equity ratio of 1.50. Its WACC is 8 percent, and the tax rate is 35 percent.

a. If the company's cost of equity is 14 percent, what is its pretax cost of debt? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Pretax cost of debt %

b. If instead you know that the aftertax cost of debt is 4.1 percent, what is the cost of equity? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Cost of equity %

Reference no: EM132791023

Questions Cloud

Describe the competitive strategies : Describe the competitive strategies used by the company's main competitors. Which of these strategies are the most effective?
Find company weighted average flotation cost : Suppose your company needs $12 million to build a new assembly line. Your target debt-equity ratio is .4. The flotation cost for new equity is 8 percent
Why would investors invest in such a security : According to the CAPM, would the expected rate of return on a security with a beta less than zero be more or less than the risk-free interest rate?
Did american imperialism affect your family : A family history project is a good way to approach history. People often do not think of where and how their families fit into history.
What is the cost of equity : Matroyshka, Inc., has a target debt-equity ratio of 1.50. Its WACC is 8 percent, and the tax rate is 35 percent.
Discuss exertion of one of the sources of power : Select four people currently in the media and discuss their exertion of one of the sources of power.
What amount should galore company recognize as gain : What amount should Galore Company recognize as gain from change in fair value in 2020? What amount should Galore Company report as depreciation
TH60123E Air Route Planning Assignment : TH60123E Air Route Planning Assignment Help and Solution, University of West London - Assessment Writing Service - European Short-haul Route Profitability
What do you think is the purpose of a personality test : What do you think is the purpose of a personality test? If someone with your test results was cast in a movie or a character in a novel, what role would they.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd