What is the value of sillery equity

Assignment Help Finance Basics
Reference no: EM132999415

Following information for the Sillery Manufacturing are available: Expected EBIT of $166,667, corporate tax rate of 35%, debt of $450,000 at an interest rate of 8%, unlevered cost of capital 18%.

i) What is the value of Sillery's equity?

ii) What is the cost of equity capital for Sillery?

iii) What is the WACC?

Reference no: EM132999415

Questions Cloud

What is the amount of the aftertax salvage value : Penny's is considering a five-year project that will require $738,000 for new fixed assets that will be depreciated straight-line to a zero book value over five
How much aryan needs to pay for the monthly installment : Aryan is a fresh graduate who has just started working for two months and now he plans to buy his first car using Vehicle Financing - Graduate Scheme. June Bank
Find the combination of the weights : Find the combination of the weights that minimizes CV of the portfolio. How the CV of the optimal portfolio compares with the CV's of its constituents What is t
What is the form of agency : What is the form of agency when both the seller and buyer are represented by separate individual agents, yet both of those agents work under the same broker? Al
What is the value of sillery equity : Following information for the Sillery Manufacturing are available: Expected EBIT of $166,667, corporate tax rate of 35%, debt of $450,000 at an interest rate of
Illustrate the process of individual choice : Also called the opportunity set-a diagram which shows what choices are possible-which of the following is the model that economists use to illustrate the proces
What is the pretax cost of debt : Jimmy's Cricket Farm issued a 20-year, 7 percent, semiannual bond four years ago. The bond currently selis for 108 percent of its face value.
Incorporate the cost of the calls : In January, Delta airlines is planning to buy 100,000 gallons of jet fuel in each of the months of June and July at the cash market price at JFK airport near Ne
What is the expanded present value : What is the expanded present value of this production facility if management has the opportunity to expand at t = 3? Please round your answer to two decimal pla

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the depreciation expense

You are given the following information for Calvani Pizza Co.: sales = $38,000; costs = $21,000; addition to retained earnings = $5,000; dividends paid = $1,500; interest expense = $5,000; tax rate = 35 percent. Calculate the depreciation expense.

  What are the principle advantages of using brokers

What are the principle advantages of using brokers, personalized trading networks, and associations in the marketing of international commodities?

  How a professional in your a finance area can use an excel

Explain (25-50 words) how a professional in your a finance area can use an Excel Table to communicate information. Further explain how a professional in your planned major area can use Tables to support analysis of information.

  N other changes took place in the number of shares

clampitt corporation had 60000 shares of common stock outstanding on january 1 2014. on april 1 2014 an additional

  Computation of target selling price and target cost

Computation of target selling price and target cost of manufacture and Should they make the Re-Rind and what would you say to them to reconcile the positions.

  What was the hospitals original profit forecast

Which inpatient service lines are over budget? Which inpatient service lines are over budget after accounting for workload increases?

  Describe the portfolio manager expectation and action

According to the situation described above, which of the following would best describe the portfolio manager's expectation and action?

  What is the company wacc

Sixx AM Manufacturing has a target debt-equity ratio of 0.59. Its cost of equity is 19 percent, and its cost of debt is 9 percent.

  What was your realized? return

a. What was your realized? return? b. How much of the return came from dividend yield and how much came from capital? gain?

  How many shares of common stock can be obtained by convert

a. How many shares of common stock can be obtained by converting one $1,000 par value debenture; that is, what is the conversion ratio? b. What was the conversion value of this issue when these debentures were originally issued? c. By what percentage..

  What is a credit default swap

What is a credit default swap? What difficulties did credit default swaps cause during the financial crisis?

  Find the full price accrued interest and clean price

Find the full price, accrued interest and clean price of a corporate bond with a 4% coupon paid semi-annually, a maturity date is August 20, 2023

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