What would be its cost of equity

Assignment Help Business Economics
Reference no: EM131487132

Suppose Microsoft has no debt and a WACC of 8.8 %. The average? debt-to-value ratio for the software industry is 5.2 %. What would be its cost of equity if it took on the average amount of debt for its industry at a cost of debt of 6.4 %?

Reference no: EM131487132

Questions Cloud

What priorities would you set for the training plan : Which department appears to be creating the most duplicates? What priorities would you set for the training plan?
What is your opinion of the content and the topic : What is your opinion of the content and the topic? For a researched argument, you would support your opinion by using supporting information from the article.
Debt by taking on new debt : If it permanently changes its leverage from no debt by taking on new debt in the amount of 13.4 % of its current market? value
How would an engaged workforce address those issues : Analyze how James Bradshaw came to understand employee engagement as a way to ensure the ongoing business effectiveness of Modern Appliances.
What would be its cost of equity : What would be its cost of equity if it took on the average amount of debt for its industry at a cost of debt of 6.4 %?
Explain the strengths and weaknesses of the company : You will Explain the strengths and weaknesses of the company and write a report either recommending or not recommending purchase of the company stock.
What does that program do to focus on health prevention : Provide an overview-and discuss the function-of 1 publicly financed health care program in the United States.
Determine the factor of safety against failure for pillar : Calculate the percentage recovery both with and without pillar recovery - Determine the factor of safety against failure for the pillar.
How organizational structures affect organizational function : How do organizational structures affect organizational functions? How does your organization's structure affect its organizational functions?

Reviews

Write a Review

Business Economics Questions & Answers

  Calculate gain in compensating consumer surplus

James has a utility function given by , where is the amount of product 1 consumed per period and is the amount of product 2 consumed per period. Derive James’ Marshallian demand functions for and , expressed as functions of the prices of goods 1 and ..

  Explain how can you verify monopolistic competition model

Suppose you can collect country level trade flows and GDP data. Explain how can you verify monopolistic competition model with data. Illustrate what do you expect is impact of transportation costs.

  Qthe economic analysis division of mapco enterprises has

q.the economic analysis division of mapco enterprises has estimated the demand function for its line of weed trimmers

  Competitive markets is the cost to society of variety

Economists say that excess capacity in monopolistically competitive markets is "the cost to society of variety." What is the cost that economists are talking about, and why is this cost the result of having a variety of goods and services?

  What are some possible explanations for retail sales

During the same period, retail sales in Japan fell 1.8 percent in real terms. What are some possible explanations for retail sales to consumers falling when GDP rises?

  Best defines basic research

Which of the following best defines basic research?

  Monopolists control

In a one page synopsis explain the following statement - A monopolist can control the price or the quantity sold, but cannot control both

  Level of output in short run using monetary-fiscal policy

The government has the ability to influence the level of output in the short run using monetary and fiscal policy. There is some disagreement as to whether the government should attempt to stabilize the economy. Which of the following are arguments i..

  What is the dollar value of the deadweight loss

What is the dollar value of the deadweight loss when output level Q3 is produced? What is the total surplus when output level Q3 is produced?

  Should he take that opportunity

1. Should he take that opportunity? 2. For a price of $25 thousand dollars, ING offers Jay to insure his investment, which means that if Greece does default, ING will repay him his initial investment, which is $50 thousand. Should he purchase insu..

  Use a designer label to differentiate her product

Why might a producer use a designer label to differentiate her product from that of another producer? Provide an example to explain your answer

  What is the efficient number of crabbers

Anyone who has ever eaten crabs from the Chesapeake Bay knows that the quality of crab cakes declines with the square of the distance from the Bay. Thus, one should never order crab cakes at Red Lobster, for example. Unfortunately, crabs have been ov..

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