User Account

All Pages

What is the new wacc

Assignment Help Financial Accounting
Reference no: EM132977672

Question - Sigma Company has the following capital structure: 45% debt, 15% preferred stock and 40% common stock. The firm's 12-year 7% annual coupon bonds is currently trading at $717.49 The firm's 10% annual dividend perpetual preferred stock with a par value of $100 is trading at $71.43. Their common stock is trading at $50. Their next dividend is expected to be $5.00. The growth rate is forecasted at 10%.. The risk-free rate is 8%, the beta of the stock is 1.5 and the market risk premium (Rm - Rf) is 12%. What is the new WACC if you take the average of the CAPM and dividend growth models to estimate the cost of equity. Assume a tax rate of 35%.

Reference no: EM132977672

Questions Cloud

How much should the firm be willing to pay : If average daily remittances are $4 million, and "extended disbursement float" adds 9 days to the disbursement schedule, how much should the firm willing to pay
List all available named licenses : List all available named licenses. List the workstations that are over three years old (from the date of purchase) and assigned to leads.
How much will the firm need to borrow : Friedman Roses Inc. needs $78,000 in funds for expansion. With a compensating balance requirement of 23%, how much will the firm need to borrow
Define and describe economies of scale : Define and describe economies of scale and provide a cloud-based example. Define and describe "right sizing" as it pertains to cloud computing.
What is the new wacc : What is the new WACC if you take the average of the CAPM and dividend growth models to estimate the cost of equity. Assume a tax rate of 35%
Discuss key components of composition in data visualization : Discuss the key components of composition in data visualization. Note why the components are valuable when creating visualizations.
Discuss the skills and abilities needed in the csirt : Discuss ways organizations have built a CSIRT. Describe the purpose and function of the CSIRT. Discuss the skills and abilities needed in the CSIRT
What the amount of the cash dividend : The balance in retained earnings at Dec. 31,2003 was 810,000 and at Dec. 31, 2003 was 854,000. What the amount of the cash dividend
Explain how do data mining and predictive analytics work : Should Facebook be regulated, at least as far as its privacy and data policies? How do data mining and predictive analytics work?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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