What is qm weighted average cost of capital

Assignment Help Finance Basics
Reference no: EM13276172

The Target capital structure for QM industries is 38% common stock, 6% preferred stock, and 56% debt. If the cost of common equity for the firm is 18.2%, the cost of preferred stock is 10.9% , the before tax cost of debt is 7.6% and the firm's tax rate is 35% what is QM's weighted average cost of capital?

Reference no: EM13276172

Questions Cloud

What is the present value of the technology : Subsequent annual cash flows will grow at 3.5 percent in perpetuity. What is the present value of the technology if the discount rate is 10 %.
Calculate the default risk premium : The maturity risk premium is 0.10 percent on 4-year securities and increases by 0.03 percent for each additional year to maturity. Calculate the default risk premium on Nikki G's 10-year bonds.
Define the approximate hemoglobin molecular weight : A human body contains 6 liters of blood. The hemoglobin content of blood is about 15.5g/100 mL of blood. The approximate hemoglobin molecular weight is 64,500g/mol. How many moles of hemoglobin are present in a typical adult
Determine the gain of the antenna in db : One of the home satellite services uses a dish antenna having a diameter of 18" (0.457 m) and frequency of 12.45 GHz. If the illumination efficiency is 70%, determine the gain of the antenna in dB
What is qm weighted average cost of capital : If the cost of common equity for the firm is 18.2%, the cost of preferred stock is 10.9% , the before tax cost of debt is 7.6% and the firm's tax rate is 35% what is QM's weighted average cost of capital?
How long was the ball in the air : A small ball rolls horizontally off the edge of a tabletop that is 1.06 m high. how long was the ball in the air
Explain change in enthalpy and change in internal energy : In an adiabatic compression if one mole of an ideal gas with a Cv=5R/2, the temperature rises from 293 K to 325 K. Calculate the heat, work, change in enthalpy and change in internal energy
Determine the increase in db of the received signal at point : Assume that an antenna has a power input of 50 W and a gain of 30 dB relative to an isotropic radiator. Determine the increase in dB of the received signal at a point where the signal strength is 5 dB below the level of maximum radiation
What is the present value of these cash flows : Conoly Co. has identified an investment project with the following cash flows. If the discount rate is 10 %, what is the present value of these cash flows? What is the present value at 18%? At 24 %? Year Cash Flow 1 - $960 2 - $840 3 - $935 4 - $1..

Reviews

Write a Review

Finance Basics Questions & Answers

  What would be the increase in the value of the company

according to MM proposition I with taxes, what would be the increase in the value of the company after the loan?

  What is the hedge ratio of the put option

Consider a six month put option on a stock with a strike price of $32. The current stock price is $30 and over the next six months it is expected to rise to $36 or fall to $27. The risk free rate is 6%.

  Interest rate risk and bond pricing

Two years ago your corporate treasurer purchased for the firm a 20-year bond at its par value of $1,000. The coupon rate on this security is 8 percent. What will be the amount of your gain or loss over the original purchase price? What do we call t..

  What is the sustainable growth rate

Joshua's Antiques has a total asset turnover rate of 1.2, an equity multiplier of 1.4, a profit margin of 5 percent, a retention ratio of 0.8, and total assets of $120,000. What is the sustainable growth rate?

  Describing off-balance-sheet assets

What do you mean by off-balance-sheet assets? Recognize the 4 major categories of off-balance-sheet business and use the suitable example to describe each category.

  Compute the current price of the company stock

Mack Industries just paid a dividend of $1 each share. Analysts expect the company's dividend to grow 20 percent this year, and 15 percent next year.

  How do you find rate of return in annuity

For example if someone purchases for $21,000 and will receive $2,000 per year for 20 years what will their return be?

  What is the projected increase in retained earnings

If all assets, short-term liabilities, and costs vary directly with sales, answer the following questions? Hint: (Additional Financing Required = Projected assets -projected liabilities-current equity-projected increase in retained earnings)

  Driving growth and sustainability of mobility industry

Nokia is a world leader in mobile communications, driving the growth and sustainability of the broader mobility industry. Nokia connects people to each other and the information that matters to them with easy-to-use and innovative products like mobil..

  Maximize profitability

Toxemia Salsa Corporation manufactures five flavors of salsa. Last year, Toxemia generated net operating income of $40,000. The following data was taken from last year's income statement segmented by flavor;

  Discuss interest-floatation costs-call premium

Explanation of a specific item, for example, interest, floatation costs, call premium, of how to employ refunding tools and techniques to minimize cost of capital.

  Examine the mix of debt and equity

Please examine the mix of debt and equity that British Petroleum (BP) uses. After finding this data:

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