What is this firms wacc

Assignment Help Finance Basics
Reference no: EM132050551

A company has $102 million in outstanding bonds, and 10 million shares of stock currently trading at $22 per share.The bonds pay an annual coupon rate of 5% and is trading at par. The company's beta is 0.7, its tax rate is 40%, the risk-free rate is 2%, and the market risk premium is 4%. What is this firm's WACC?

Reference no: EM132050551

Questions Cloud

What knowledge and abilities are required : What knowledge, skills, and abilities (KSAs) are required of a management accountant to be an effective resource to management?
Evaluating a project with the expected cash flows : You are evaluating a project with the following expected cash flows: an initial investment of $9 million, followed by cash flows of $6
How much did col make on this investment : When she sells the bond 1 year later, the current yield on the bond is 6%. How much did Col make on this investment?
Why might a company choose not to trace : If a cost can be traced directly to its cost object, why might a company choose not to trace, but rather, to include the cost in the indirect cost category.
What is this firms wacc : The company's beta is 0.7, its tax rate is 40%, the risk-free rate is 2%, and the market risk premium is 4%. What is this firm's WACC?
Examine the data from chester medical center : Describe whether the ethical theory of Just Culture would improve the quality of a health care organization and how.
Explain why bonner is the owner of the invention : You are the CEO of Bonner, a U.S.-based farm equipment corporation. Bonner recently announced the release of an innovative new tractor with technology based.
What retirement plan should addison consider : What retirement plan should Addison consider if he owns a small firm with employees and earns $55,000 per year?
How much of the retirement fund represents interest and gain : How much of the retirement fund represents interest and gains (in excess of contributions) earned?

Reviews

Write a Review

Finance Basics Questions & Answers

  Relationship in compliance department and other departments

Determine the benefits of ensuring good relationships between the Compliance Department and other departments within the business and explain the negative impact of not doing so?

  A stock that currently trades for 70 per share is expected

a stock that currently trades for 70 per share is expected to pay a year-end dividend of 4 per share. the dividend is

  Rate of return of the stock for gringots

1) You are given the following information regarding the rate of return of the stock for Gringots

  What are in backwardation and what are mixed

Get descriptions of each future: ESZ6 Index DES. Submit printouts. Write down what of the futures markets are in contango, what are in backwardation and what are mixed. What markets show seasonality?

  If a person age 23 puchases a 100000 life paid up at age 65

if a person age 23 puchases a 100000 life paid up at age 65 life insurance policy for a cost of 1450 per year what is

  Discuss the trade discount terms

Feast'N'Run provides a contract catering service to several university and college campuses. One of its main suppliers has offered trade discount terms.

  Compute the overhead cost per unit

Vid-saver, Corporation, has five activity cost pools and two products a budget tape rewinder and a deluxe tape rewinder.

  What is the sustainable growth rate

Web cities Reactors projects a rate of return of 20% on new projects. Management plans to plow back 25% of all earning into the time.

  Find the last price at stock traded

Machines stock was found in the Thursday, December 14, issue of the Wall Street Journal. AdvBusMach ABM 81.75 1.63 Given this data, answer the questions:

  Find the exchange exposure coefficient faced by abc

Find the exchange exposure coefficient faced by ABC for its Brazilian subsidiary (i.e., find the b estimate from a regression)

  Bank a pays 75 interest compounded annually on deposits

bank a pays 7.5 interest compounded annually on deposits while bank b pays 7 compounded daily. based on the ear or eff

  Perspective of an investment analyst

What are the underlying assumptions from the perspective of an investment analyst faced with the circumstances in the case-where do you see them?

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