What is the wacc

Assignment Help Finance Basics
Reference no: EM13486654

Qualtric Inc. has a target capital structure of 35% debt and the remainder common equity. Qualtric Inc.'s cost of debt on the first $3 million borrowed is 7.5%, but that cost of debt increases to 8.0% for borrowing about the $3 million level. Its tax rate is 30%, its most recent dividend was $1.20 and that dividend has been growing at 2.5% annually and is expected to continue that growth. The current price of Qualtric Inc. stock is $18.50 per share. Flotation costs on new equity are 7.5% and Qualtric Inc. has retained earnings of $4.5 million. What is the WACC if Qualtric Inc.'s total capital expenditure is expected to be $6.5 million?

Reference no: EM13486654

Questions Cloud

Find the general solution of the differential equation : Find the general solution of the differential equation and write the differential equation as a system of three first order differential equations.
Explain the deposition of cu at the cathode : Calculate the quantity indicated for each of the following electrolyses. Enter scientific notation as 1.23E4. (a) [Cu2+] remaining in 5.70E2 mL of a solution that was originally 0.412 M CuSO4, after passage of 3.50 A for 289 s and the deposition o..
How much gasoline spills out in this case : Early in the morning, when the temperature is 5.0°C, gasoline is pumped into a car's 45 L steel gas tank until it is filled to the top. How much gasoline spills out in this case
Evaluate ecell for each of the following cells : Use the Nernst equation and data from Appendix D to calculate Ecell for each of the following cells. Enter your answer with 3 significant digits. Enter scientific notation as 1.23E4.
What is the wacc : Qualtric Inc. has a target capital structure of 35% debt and the remainder common equity. Qualtric Inc.'s cost of debt on the first $3 million borrowed is 7.5%
Determine the diameter of the pupils of his eyes : A hunter who is a bit of a braggart claims that from a distance of 1.7 km he can selectively shoot either of two squirrels who are sitting 8.0 centimeters apart on the same branch of a tree. Determine the diameter of the pupils of his eyes
What is the energy of the oscillator after one oscillation : A dampled harmonic oscillator is made from a 0.8kg mass on a k=14N/m spring with a damping constant of 400g/s, What is the energy of the oscillator after one oscillation
Explain ecell if the unknown solution in the half-cell : For the cell diagram T1 and Pt Enter part(a), (c) with 2 siginificant digits and part(b) with 3 siginificant digits. Enter scientific notation as 1.23E4. (a) What is Ecell if the unknown solution in the half-cell on the left has pH = 4.94
What is the expected stock price one year : CC Inc. stock recently paid a dividend of $3. The company expects to boost the dividend at a rate of 15% for the next two years. Thereafter, the growth rate is expected to be 5%. The required return on the stock is 12%. What is the expected ..

Reviews

Write a Review

Finance Basics Questions & Answers

  Computation of income statement and break-even analysis

Computation of income statement and break-even analysis and What is the dollar size of the issue

  Topic of scarcity

Discuss the topic of scarcity using Opportunity costs, Trade-offs and Factors of production.

  Drongo corporations 4-year bonds currently yield 84 percent

drongo corporations 4-year bonds currently yield 8.4 percent. the real risk-free rate of interest k is 2.7 percent and

  Read dartmouth-hitchcock medical center spine careread duke

read dartmouth-hitchcock medical center spine careread duke heart failure program 604033-hcb-eng.answer the following

  What is the tax effect of selling the old machine

Working capital is expected to increase by $3,000 at the inception of the project, but this amount will be recaptured at the end of year five. What is the tax effect of selling the old machine?

  A company issues a ten-year bond at par with a coupon rate

a company issues a ten-year bond at par with a coupon rate of 6 paid semi-annually. the ytm at the beginning of the

  What is lennons irr

Lennon uses the internal rate of return method to evaluate projects. What is Lennon's IRR?

  What additional costs will be charged to this customer

The firm had two consultations with this client and required 130 administrative labor hours. What additional costs will be charged to this customer?

  Find the overall pre-tax and after-tax cost of debt

Find the overall pre-tax and after-tax cost of debt for a company with the following bonds. The tax rate is 35%.

  Exchange rate and return to investor

What is the rate of return to an American investor if the exchange rate is still $1.60/£? What if the exchange rate is $1.70/£?

  What is the net present value of acquiring

What is the net present value of acquiring The Floral Shoppe to Maggie's Flowers?

  Determining the inventory conversion period at various

determining the inventory conversion period at various parameters.the garcia industries balance sheet and income

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