What is the wacc for the project

Assignment Help Finance Basics
Reference no: EM132703626

Assume your calculated re for the project is 7.8%. The CFO also tells you that company's rd equals 3.0%. Remembering that the project is financed by half debt and half equity, and that the company tax rate is 20%, what is the WACC for the project?

Reference no: EM132703626

Questions Cloud

Compute the modified duration of an asset : Compute the modified duration of an asset given a Macaulay convexity of 1285, a modified convexity of 1227, and an effective annual interest rate of 3%.
Find the compensation rate s for default risk : A lender requires an annual effective interest rate of r=4% without default risk, and an annual effective interest rate of R=5.26% with default risk.
Explain significant issue relating to ethics and morality : You will write a 7 page research paper on a significant issue of your choosing relating to ethics and morality in any aspect of the course.
What is zoom video communications : What is Zoom Video Communications' business-level strategy?
What is the wacc for the project : Remembering that the project is financed by half debt and half equity, and that the company tax rate is 20%, what is the WACC for the project?
What is the re for the project : What is the re for the project? Answer should include four digits to the right of the decimal point.
Discuss the background of rehabilitation : There is considerable disagreement about the effectiveness of rehabilitation. In Chapter 14 of the text the authors note that studies have shown both little.
Determine the profit from an index arbitrage : If the stock index is at 148, the three-month futures price is 151, the dividend yield is 5 percent and the interest rate is 8 percent
What is the hypothesis of the research : What is the hypothesis of the research? List and operationalize all independent and dependent variables examined. What method of data collection was used.

Reviews

Write a Review

Finance Basics Questions & Answers

  Browsing on the mobile device

A 2014 survey of 280 American adults indicates that 30% of cell phone owners do their browsing on their phone rather than a computer or other device.

  Explain relation between risk and return for common stocks

Explain the historical relationships between risk and return for common stocks versus corporate bonds. Explain the manner in which diversification helps in risk reduction in a portfolio.

  Measure the outcomes of tourists experiences

Is satisfaction an adequate concept to measure the outcomes of tourists' experiences? Do you agree with this statement or not? Explain why you might or might no

  Question-outsourcing in it

Sourcing practices relate to the way in which organizations procure equipment or services that are required to support operations.

  Why the earnings per share of picasso art supplies changed

If all the shares of Rembrandt Paint Co. are exchanged for those of Picasso Art Supplies on a share-for-share basis, what will postmerger earnings per share.

  Constant innovations in product markets

Innovative Product Development - There are constant innovations in product markets and products move through the Product Life Cycle.

  Explain the similar-risk investment opportunities

Personal Finance Problem You are evaluating the potential purchase of a small business currently generating $47,500 of after-tax cash flow.

  If discount rate is 7 percent find the future value of cash

toadies inc. has identified an investment project with the following cash flows. year cash flow 1 1575 2 1695 3

  Underwriting and flotation expenses

The Beranek Company, whose stock price is now $25, needs to raise $10 million in common stock. Underwriters have informed the firm's management

  How much can the firm spend on new capital? expenditures

If Parker wants to avoid selling any new? stock, how much can the firm spend on new capital? expenditures?

  What type of laptops to buy for salespeople on their calls

You are the manager of a pharmaceutical company and are considering what type of laptops to buy for your salespeople to take with them on their calls.

  What yield did she earn on her investment

She purchased the stock one year ago for $150 per share. If Wilma did not receive any dividend payments during the year, what yield did she earn on her investment?

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