Suppose dell has no debt and a wacc

Assignment Help Financial Management

Reference no: EM13939754

Suppose dell has no debt and a wacc of 9.3%. The average debt to value ratio for the software industry is 9.3%. 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 6.5%?

Reference no: EM13939754

Questions Cloud

What purpose adding hydrogen peroxide to uninoculated tube : If a weakly catalase-positive organism itinitially gives a false-negative result and is not checked under the miicroscope, would the result be due to a lack of specificity or sensitivity of the test system?

Considering new inventory system : DYI Construction Co. is considering a new inventory system that will cost $750,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $325,000 in year two, $150,000 in year three, ..

Discuss one world religion of your choice : In a 7-8 page paper, discuss one world religion of your choice and a major question that the world religion deals with. For example, the nature of God, the ethical life, prayer, social duties, the afterlife, man's purpose in life, abortion, and so..

Critic analysis of published research papers : A literature review is a description of the literature relevant to a particular field or topic. It can be a critic analysis of published research papers or books along with a comparison to new research contributions.

Suppose dell has no debt and a wacc : Suppose dell has no debt and a wacc of 9.3%. The average debt to value ratio for the software industry is 9.3%. 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 6.5%?

Change in bond price bond : A 5.55 percent coupon bond with ten years left to maturity is priced to offer a 7.0 percent yield to maturity. You believe that in one year, the yield to maturity will be 6.0 percent. What is the change in price the bond will experience in dollars?

Discuss the microbiology of gut, liver and respiratory tract : Discuss the microbiology of gut, liver and respiratory tract, Discuss white blood cell pathology and What is haemostasis? What can go wrong?

Necessary research into the nominated organisations : Please read the instructions and conduct the necessary research into the nominated organisations' sustainability strategy. Once you have completed the investigation, you may proceed to respond to the questions given below.

To whom the privacy violation should be reported : Determine to whom the privacy violation should be reported and the timing required for the notification. Identify the specific action(s) appropriate to address each of the following situations.

User Account

All Pages