What is the firm weighted average cost of capital

Assignment Help Financial Management

Reference no: EM132053240

Parole Co. has 75,032 bonds outstanding that are selling at par value. The bonds yield 8.3 percent. The company also has 4.3 million shares of common stock outstanding. The stock has a beta of 1.34 and sells for $42.2 a share. The U.S. Treasury bill is yielding 4.8 percent and the market risk premium is 7.5 percent. Parole's tax rate is 37 percent. What is the firm's weighted average cost of capital?

Reference no: EM132053240

Questions Cloud

Evaluate the impact of implementing triple aim goals : Write a 700- to 1,050-word paper that evaluates the impact of implementing Triple Aim goals nationally. Determine whether the three dimensions of Triple Aim.

Determine each project risk-adjusted net present value : The Hokie Corporation is considering two mutually exclusive projects. Determine each? project's risk-adjusted net present value.

Discuss challenges of an effective training program : Discuss at least three challenges of and three opportunities for the implementation and maintenance of an effective training program.

What does the web site do to make the product tangible : What does the web site do to make the product tangible for the customer? Explain how the site provides tangible evidence relating to the experience a visitor.

What is the firm weighted average cost of capital : Parole Co. has 75,032 bonds outstanding that are selling at par value. What is the firm's weighted average cost of capital?

Identify the potential gaps in organizational effectiveness : Identify the potential gaps in organizational effectiveness related to staffing. Identify and explain the potential employee needs that can lead to improved.

Determine design professionals and contractors to hire : Determine design professionals and contractors you will seek to hire and justify. Discuss how pricing will be established.

Develop recommendations for the resort : Select a resort with which you are familiar and analyze its behavior as a corporate citizen. Develop recommendations for the resort to improve.

Company capital structure weights on book value basis : What are the company’s capital structure weights on a book value basis? What are the company’s capital structure weights on a market value basis?

User Account

All Pages