What is the firm weighted average cost of capital

Assignment Help Financial Management
Reference no: EM132066947

The Thrifty Gourmet,a specialty food retailer, has and estimated cost of equity of 18.0% a pre-tax cost of debt of debt of 6.5%, and a tax rate of 21%. what is the firm’s weighted average cost of capital(wacc) if the company’s target capital structure is 70% equity (common stock only) and 30% debt?

Reference no: EM132066947

Questions Cloud

Determine the range of forward-bias voltages : Determine the range of forward-bias voltages that are applied to the diodes.
Profit margin-return on assets and return on equity : Profit Margin, Return on Assets, Return on Equity, Receivables Turnover, Inventory Turnover, Fixed Asset Turnover,
Florida blue do to reduce the backlash from their brokers : What could Florida Blue do to reduce the backlash from their brokers who may be threatened by BCBSF opening its own store?
How an existing rfid standard could be modified : If there are no specific standards that you think apply to your selected industry then research how an existing RFID standard could be modified to support.
What is the firm weighted average cost of capital : What is the firm’s weighted average cost of capital (wacc) if the company’s target capital structure is 70% equity (common stock only) and 30% debt?
What is the initial cost of the plant : What is the initial cost of the plant if the company typically uses 100 percent retained earnings?
Compare the two different leadership styles : Identify, compare, and contrast the two different leadership styles of each one. Be sure to add applicable leadership theories and concepts.
Discuss about the media have lost the public trust in the us : Debate It - Take a position on this statement: Democracies need an investigative, confrontational press it can trust - not reality TV news.
Discuss how you would use the materials : As an IT manager, discuss how you would use the materials in Chapter 11 of your textbook communicating IT information to other department.

Reviews

Write a Review

Financial Management Questions & Answers

  What is its coefficient of variation

Its variance of returns is 0.0146. All returns here are expresed as decimals, not percentages. What is its coefficient of variation?

  How much money should he place today in saving account

John plans to buy a vacation home in 3 years from now and wants to have saved $60,269 for a down payment. How much money should he place today in a saving account that earns 5.41 percent per year (compounded daily) to accumulate money for his down pa..

  Sigma be use in organization such as construction company

How would the methology Six Sigma be use in an organization such as a construction company?

  What is the target share price five years from now

What is the target share price five years from now?

  Market is in equilibrium with the required return

Constant Growth Rate, g A stock is trading at $45 per share. The stock is expected to have a year-end dividend of $3 per share (D1 = $3), and it is expected to grow at some constant rate g throughout time. The stock's required rate of return is 14% (..

  For how many days on average does a car stay

Assume that the cars are sold in the order in which they were purchased and each car costs the same.

  Domestic corporation-sold equipment

During the current year, USACo (a domestic corporation) sold equipment to FrenchCo, a foreign corporation, for $350,000, with title passing to buyer in France.

  Maintain constant growth rate in its dividends

Suppose you know that a company’s stock currently sells for $51 per share and the required return on the stock is 11 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. If it..

  Explain a variety of capital budgeting calculation

Calculate and explain a variety of capital budgeting calculations- Pay back period, accounting Rate of Return and Net Present value.

  Find conditions under which a pooling equilibrium

Find conditions under which a "pooling equilibrium," in which the entrepreneur keeps a low profile (yˆ1 = 0) when successful (y1 = R1), prevails.

  Rate of return is applicable to this potential purchase

Marko, Inc. is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $5,000, $9,000, and $15,000 over the next three years, respectively. After that time, Marko feels ABC will be worthless. Marko has determined th..

  What would be additional funds needed

The after-tax profit margin is forecasted to be 6%, and the forecasted payout ratio is 65%. What would be the additional funds needed?

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