Find out wacc, Financial Management

Assignment Help:

Directions: Use the information below to calculate the WACC and its components for Hawk Corp.

WACC= (%CE)(cost of CE) + (%PE)(cost of PE) + (%D)(cost of D)(1-T) Type of capital

# of units

Per unit mkt value (Po)

Total mkt value (# units X unit value)

Weight (Mkt value of each/ Total market value)

Common equity (CE)

15,675,000

$49.60

Preferred equity (PE)

3,250,000

$89.50

Debt (D)

35,000

$962

Total mkt value>

100%









 

1. What percentage of Hawk Corp's capital structure is in common equity?

2. What percentage of Hawk Corp's capital structure is in preferred equity?

3. What percentage of Hawk Corp's capital structure is in debt?

4. What is Hawk Corp's cost of common equity?

5. What is Hawk Corp's cost of preferred equity?

6. What is Hawk Corp's cost of debt?

7. What is Hawk Corp's WACC?


Related Discussions:- Find out wacc

#title.OPERATING CYCLE, DISCUSS THE APPLICABILITY OF OPERATING CYCLE IN VEG...

DISCUSS THE APPLICABILITY OF OPERATING CYCLE IN VEGETABLE GROWING.

Leverage, evaluate the importace of leverage in financial management of a s...

evaluate the importace of leverage in financial management of a small scale company

Functions of treasurer, Functions of Treasurer:- (1) Cash Management: -...

Functions of Treasurer:- (1) Cash Management: - It comprises the managing of cash receipts and cash payments of the business. (2) Banking Relations: - It comprises operating

Explain the mechanism that restores the balance of payments, Explain the me...

Explain the mechanism which restores the balance of payments equilibrium when it is disturbed under the gold standard. Answer:  The adjustment mechanism within the gold standar

Objectives of cash management, Q. Objectives of Cash Management? (i) To...

Q. Objectives of Cash Management? (i) To sustain Optimum Cash Balance: - The major objective of cash management is to determine the optimum cash balance required in the busines

Determine the operating profit of the firm, 1. The Gulf had sales of  AED 2...

1. The Gulf had sales of  AED 20,000,000 and cost of goods sold of  AED 10,250,000. Selling and administrative expenses represented 8 percent of sales. Depreciation was 5 percent o

Assignment, 1. If Robinson wishes to maximize its total market value, would...

1. If Robinson wishes to maximize its total market value, would you recommend that it issue debt or equity to finance the land purchase? Explain. 2. Construct Robinson’s market va

What do you understand by business cycle, Q. What do you understand by Busi...

Q. What do you understand by Business cycle? Business cycle: business cycle refers to the alternate expansion and contraction in the general business activity. in a period of t

Irr and npv, (a) Lonesome Gulch Mines has a standard deviation of 42% per ...

(a) Lonesome Gulch Mines has a standard deviation of 42% per year and a beta of 0.10.  Amalgamated Copper has a standard deviation of 31% a year and a beta of 0.66.

What are the government securities - debt securities, What are the Governm...

What are the Government Securities Government is one of the biggest borrowers from capital and money market. We have already taken a look at money market securities offered by

Write Your Message!

Captcha
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