What is the weighted average cost of capital

Reference no: EM132716152

Question - Lasco farms is a major wheat producer in Australia. The company has 10000000 shares on issue . The shares trade at $2.60 each and have a beta of 0.80. the company has a small bond issue of 12000 bonds. The bonds trade at $ 950 each and have a yield to maturity of 4%. The share market has expected return of 8% and the risk - free rate is 3%. What is the weighted average cost of capital for Lasco farms? The taxation rate is 30%.

Reference no: EM132716152

Questions Cloud

Should Major classify the amount payable : Should Major classify the amount payable in the equity section of the balance sheet? If so, as what (i.e., using what account title(s))

What should be the stock expected price today : Assume that the expected future dividends (D) at end of periods 1,2, and 3, What should be the stock's expected price today, (i.e. P0)

Focus for information governance efforts : We learned that e-mail is a major area of focus for information governance (IG) efforts, and has become the most common business software application

Discussing a different types of crypto-currency : Using the University Digital Library or the Google scholar website locate articles discussing a different types of crypto-currency.

What is the weighted average cost of capital : The share market has expected return of 8% and the risk - free rate is 3%. What is the weighted average cost of capital for Lasco farms

Discuss the overall process of developing new software : Discuss the overall process of developing new software. Please also note the differences between software development and methods.

Explain the features of just-in-time manufacturing system : In order to answer these questions Esther prepares a cost analysis every time she plans an audit trip. Explain the features of just-in-time manufacturing system

What would different cost between theirs two product line : What would the different cost between theirs two product line, how would this may be more profitable than the other

Computer security incident response team : After the recent security breach, Always Fresh decided to form a computer security incident response team (CSIRT).

User Account

All Pages