What is the wacc if the tax rate

Assignment Help Finance Basics
Reference no: EM132046588

Suppose the Simmons Co's common stock has a beta of 1.37, the risk-free rate is 3.4 percent, and the market risk premium is 8.2 percent. The yield to maturity in the firm's bonds is 7.6 percent and the debt-equity ratio is .45. What is the WACC if the tax rate is 34 percent

Reference no: EM132046588

Questions Cloud

What is the profitability index : Considering the discount rate of 10%, what is the profitability index?
Summarize your network security controls : Summarize your network security controls in a Word document and submit it to your instructor. You must provide rationale for your choices by explaining.
What is the maximum amount of monthly debt payments : What is the maximum amount of monthly debt payments that Alyssa can have if she wants her debt safety ratio to be 15.0%?
Weighted average flotation cost : The cost of floating equity is 9.5 percent and the flotation cost of debt is 6.6 percent. What should the firm use as their weighted average flotation cost
What is the wacc if the tax rate : The yield to maturity in the firm's bonds is 7.6 percent and the debt-equity ratio is .45. What is the WACC if the tax rate is 34 percent
What are the total carrying costs : ABC Company sells 4,942 chairs a year at an average price per chair of $125. What are the total carrying costs?
Withdrawal in order to meet her requirement : Maria has decided that she can live on $80,000 a year upon retirement, and she expects to live for thirty years after she has retired.
Describe threats and vulnerabilities of social engineering : Describe the threats and vulnerabilities of social engineering and social media; include how they are similar and how they are different.
What is amount to use as the annual sales figure : What is the amount to use as the annual sales figure when evaluating this project?

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the standard deviation of treasury bill

Calculate the standard deviation of Treasury bill returns and inflation over this time period.

  Maker of telecommunications equipment

FarCry Industries, a maker of telecommunications equipment, has 3 million shares of common stock outstanding, 1 million shares of preferred stock.

  Receive monthly to reach goal

Tom has $5000 to invest and would like to buy a $9500 jet ski on 4 years. If interest rate is compounded monthly, what interest he has to receive monthly to reach his goal?

  Ci for the true mean of the heart rate

The mean heart rate of these patients is 68.8 with a standard deviation of 5.2. What is the 95% CI for the true mean of the heart rate.

  The schmeddley discount department store has approximately

1.the schmeddley discount department store has approximately 300 customers shopping in its store between 9 a.m. and 5

  What would be the approximate expected price of a stock

What would be the approximate expected price of a stock when dividends are expected to grow at a 25% rate for 3 years, then grows at a constant rate of 7.5% if stock's require return is 15% and next year's dividend will be $2.00?

  Coogly has outstanding preferred stock that pays a

coogly company is attempting to identify its weighted average cost of capital for the coming year and has hired you to

  The tables below show respectively the characteristics of

the tables below show respectively the characteristics of two annual-pay bonds from the same issuer with the same

  Explain roles of stakeholders affected by financial issue

Explain the roles of the stakeholders affected by the financial issue. Explain the factors contributing to rising health care costs related to the financial issue. Identify legislation that affects the financial issue.

  Annual installments that include both the principal

On December 31, Beth Klemkosky bought a yacht for $120,000. She paid $20,000 down and agreed to pay the balance in 11 equal annual installments that include both the principal and 6 percent interest on the declining balance.

  Borrow today as part of the new financing

How much additional cash can you borrow today as part of the new financing?

  How should an insurance company consider nonperformance

how should an insurance company consider nonperformance risk relating to separate components of a hybrid insurance

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