What is the wacc if the cost of equity is ten percent

Assignment Help Financial Management

Reference no: EM131881791

A small private company has $200,000 in debt and $400,000 in equity. The interest rate on the loan is Prime + 2%. Current Prime is 3.25%.

What is the after tax cost of debt, assuming a 35% tax rate? What is the WACC if the cost of equity is 10%?

Reference no: EM131881791

Questions Cloud

What action should jenny recommend to management : Use the information provided to calculate the strategic? NPV, NPVstrategic, for Asor? Products' proposed equipment expenditure.

Calculate the total depreciation expense plus the loss : Calculate the total depreciation expense plus the loss or minus the gain under (1) the straight method and (2) the double diminishing-balance method.

Prepare a worksheet to consolidate the financial information : n January1, 2017 Pinnacle Corporation exchanged $3,808,500 cash. Prepare a worksheet to consolidate the financial information for these two companies.

How do you calculation earnings per share : How do you calculation Earnings Per Share (EPS)? Provide examples of actual companies and their respective EPSs per share?

What is the wacc if the cost of equity is ten percent : A small private company has $200,000 in debt and $400,000 in equity. The interest rate on the loan is Prime + 2%. Current Prime is 3.25%.

What are the tax consequences to wanda and to oriole : In January 2016, Wanda transferred machinery worth $200,000. What are the tax consequences to Wanda and to Oriole on the sale of the machinery?

Determine what will be her percentage capital gain or loss : Now assume Mrs. Pinson buys the bond at its current market value and holds it to maturity, what will be her percentage capital gain or loss?

Prepare a summary journal entry to record raw materials used : In January, Knox Company requisitions raw materials for production. Prepare a summary journal entry to record raw materials used.

What is the implied interest rate for the treasury bond : The Zinn Company plans to issue $10,000,000 of 20-year semi-annual bonds in June to help finance a new research and development laboratory.

User Account

All Pages