What is the firm target debt- equity ratio

Assignment Help Accounting Basics
Reference no: EM133085734

Question - Design Interiors has a cost of equity of 18.6 percent and a pre-tax cost of debt of 9.7 percent. The firm's target weighted average of capital is 12 percent and its tax rate is 35 percent. What is the firm's target debt- equity ratio?

Reference no: EM133085734

Questions Cloud

Compute the unit cost of Product A : Compute the unit cost of Product A if Products A and B are main products and Product C is a by-product for which the cost reduction method is used
Define importance of purchasing and supply management : Define the importance of purchasing and supply management and how this relates to selecting a qualified supplier.
What is the amount that Jeremy Grey will receive : Jeremy Grey loans Gary Grobowski $400,000. What is the amount that Jeremy Grey will receive on the sale of the note to Blue Hills Bank
Why southeast asia is popular with tourists : -Give two major reasons why Southeast Asia is popular with tourists and identify one risk or disadvantage associated with mass tourism.
What is the firm target debt- equity ratio : The firm's target weighted average of capital is 12 percent and its tax rate is 35 percent. What is the firm's target debt- equity ratio
What is the japan model of development : -How can Central Asia overcome the historical limitations to development of its semi land locked status? Please briefly explain.
Analyze pricing techniques for established products : Analyze pricing techniques for established products and services. Next, select and explain the pricing strategy you would use for a business.
Discuss external recruitment resources : Discuss 3 external recruitment resources and 1 internal resource for the position of quality assurance manager. Discuss 1 additional recruitment tool that you d
Characteristics of the genetic disease : Describe the general characteristics of the genetic disease and include statistical data from the Philippines, what age group and sex does it affect

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