What is the firm weighted average cost of capital

Assignment Help Financial Management

Reference no: EM131559640

BlockOut Co. has 73,219 bonds outstanding that are selling at par value. The bonds yield 8.3 percent. The company also has 5.8 million shares of common stock outstanding. The stock has a beta of 1.2 and sells for $44.8 a share. The U.S. Treasury bill is yielding 4.5 percent and the market risk premium is 8.8 percent. Blackout's tax rate is 34 percent. What is the firm's weighted average cost of capital? (Enter answer in percents.)

Reference no: EM131559640

Questions Cloud

What was the firm ocf for the year : Over the past year, a firm has paid $86 in dividends and $60 in interest. What was the firm's OCF for the year?

What is implied one year rate that will occur in two years : what is the implied 1-year rate that will occur in 1 year? What is the implied 1-year rate that will occur in 2 years?

Is there connection between financialization and technology : Is there a connection between financialization and technology? Do either play a role in culture of Silicon Valley or in actions of Goldman Sachs in Griftopia?

Net working capital increases when : Net working capital increases when

What is the firm weighted average cost of capital : Blackout's tax rate is 34 percent. What is the firm's weighted average cost of capital? (Enter answer in percents.)

An increase in the expected future inflation rate : An increase in the expected future inflation rate has the effect of

Methods of accessing the internet : Explain the terminology associated with the basic functioning of the internet and methods of accessing the internet.

Considering adding a miniature golf course to its facility : SQLite Sports is considering adding a miniature golf course to its facility.

The federalists and anti-federalists : For the next rally, you have been asked to give a speech regarding how/why you have been influenced by that particular side.

User Account

All Pages