Calculate its cost of capital

Reference no: EM13125054

Nessumsar compay develops educational materials. It has a cost of debt after taxes of 6.8% and a cost of equity of 10.9%. The company finances with 45% debt. Calculate its cost of capital.

Reference no: EM13125054

Questions Cloud

Illustrate what is the amount that tim may claim : In itemizing his deductions, illustrate what is the amount that Tim may claim as a deduction for taxes?

Stability of fixed points of linear differential systems : Analyze the stability of the fixed points of linear differential systems. Provide several explicit examples, with graphical illustrations

Compute kc at temperature. : An equilibrium mixture in a 2.00 L vessel is found to contain 0.0406 mol CH3OH, 0.170 mol CO, and 0.302 mol H2 at 500 K. Calculate Kc at this temperature.

Minimizing the gift taxes : What's wrong with this strategy if they want their kids to enjoy their wealth after they are gone? What other things can you suggest to them to minimize their gift taxes?

Calculate its cost of capital : Nessumsar compay develops educational materials. It has a cost of debt after taxes of 6.8% and a cost of equity of 10.9%. The company finances with 45% debt. Calculate its cost of capital.

Conditioned systems of equations : Comparing the 2 solution can you determine whether the fist system of equations is ill-conditioned or not?? Explain why it is ill-conditioned??

Confidence interval estimate of proportion have same opinion : Construct a 99% confidence interval estimate of the proportion of all senior executives who have that same opinion. Is it possible that exactly half of all senior executives believe that the most common job interview mistake.

Why is the cost of equity higher when debt is used : If the company decides to use 40% debt what is the new cost of equity? Note, the company's marginal tax rate is 35%. (Hint: calculate the levered beta and then re-calculate the cost of equity with that.)

Computing value of kb in substances and pkb for base : Calculating Value of Kb in Substances and pKb for Base, Codeine (C18H15NO3) is a weak organic base. A 5.0x10-3 solution of codeine has a pH of 9.95.

User Account

All Pages