What is the wacc for ampex

Assignment Help Finance Basics
Reference no: EM131539433

Question: Ampex common stock has beta of 1.4 if the risk free rate is 8%, the expected market return is 16% and Ampex has $20 million of 8% debt, with yield to maturity of 12% and a marginal tax rate of 50%,what is the WACC for Ampex?

Reference no: EM131539433

Questions Cloud

Introduced premium coffee-flavored liquor : Coffeestop primarily sells coffee. it recently introduced a premium coffee-flavored liquor (BF Liquors).
What will the investor receive when the bond matures : Given the information below, answer the following questions. A convertible bond has the following features: Principal $1,000 Maturity date 20 years Interest.
Agreement with firm bank to finance firm working capital : The Bensington Glass Company entered into a loan agreement with the? firm's bank to finance the? firm's working capital.
Think about what is appropriate discount rate : What is the weighted average cost of capital? What is the NPV of the proposed project (Think about what is appropriate discount rate)?
What is the wacc for ampex : Ampex common stock has beta of 1.4 if the risk free rate is 8%, the expected market return is 16% and Ampex has $20 million of 8% debt.
Used as the risk-free rate of return : The return on which one of the following is used as the risk-free rate of return?
What is the exact interest on both offers : The shipping charges are $150 and the interest is 8.75% for both options. What is the exact interest on both offers?
Replacement analysis-replace it with new plane : If AirExpress’s MARR is 10% per year, what would you advise the company to do--keep the old plane or replace it with the new plane?
Define the portfolio return : if rbc's stock goes up to $94 per share and td's stock falls to $72 per share, what is your portfolio return?

Reviews

Write a Review

Finance Basics Questions & Answers

  Annual income be to qualify for this mortgage

What must your annual income be to qualify for this mortgage?

  What is the difference between pledging accounts receivable

The Signet Corporation has issued four-month commercial paper with a $6 million face value. The firm netted $5,870,850 on the sale. What effective annual rate is Signet paying for these funds?

  What is the default risk premium on the corporate bond

A 10-year corporate bond has a yield of 9%. Assume that the liquidity premium on the corporate bond is 0.7%. What is the default risk premium on the corporate bond? Round your answer to two decimal places.

  Stocks and other assets

Assess the factors you should consider when advising a client to invest in stocks, bonds, real estate, or some other financial instrument.

  Make the calculations necessary to arrive

Make the calculations necessary to arrive at the correct figures for total contribution margin, contribution margin per unit, the contribution margin ration, and profit (or loss) with calculations.

  A manufacturer of electronic fitness equipment

Cherone Equipment, a manufacturer of electronic fitness equipment, wishes to evaluate two alternative plans for increasing its production capacity to meet the rapidly growing demand for its key product-the Cardiocycle.

  What is the spot rate today

Tantrix, Inc., purchased its inventory from an Indian manufacturer at a cost of Rs.5,325,000. The dollar cost of this payable is $125,634.07 at todays spot rate. What is the spot rate today?

  Case study

Case Study: The following capital structure is taken from Bata Boots Co. balance sheet for the fiscal year ended April 30, 2005.  This is considered the firm’s optimal capital structure.

  Calculating synergy

Pearl, Inc., has offered $357 million cash for all of the common stock in Jam Corporation. Based on recent market information, Jam is worth $319 million as an independent operation. If the merger makes economic sense for Pearl, what is the minimum..

  What is the expected return on a portfolio

What is the expected return on a portfolio that is equally invested in the two assets? (Round your answer to 2 decimal places. (e.g., 32.16))

  Company cost of equity

Its last dividend was $2 per share; the stock sold for $40 per share just after the dividend was paid. What is the company's cost of equity?

  What does the given information tell you about the project

What does this information tell you about this project? What else might you need to know? Explain this as though you were presenting to someone who does not understand the earned value terminology.

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