What is the company wacc

Assignment Help Business Management
Reference no: EM131100891

1. Miller Manufacturing has a target debt-equity ratio of .40. Its cost of equity is 15 percent, and its cost of debt is 6 percent. If the tax rate is 40 percent, what is the company's WACC?

WACC 1=_____________%

2. Filer Manufacturing has 9.1 million shares of common stock outstanding. The current share price is $61, and the book value per share is $3. The company also has two bond issues outstanding. The first bond issue has a face value of $71.6 million and a coupon rate of 7.8 percent and sells for 107.5 percent of par. The second issue has a face value of $61.6 million and a coupon rate of 8.3 percent and sells for 110.5 percent of par. The first issue matures in 7 years, the second in 28 years.

3. Suppose the company's stock has a beta of 1.1. The risk-free rate is 3.9 percent, and the market risk premium is 7.8 percent. Assume that the overall cost of debt is the weighted average implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 34 percent. What is the company's WACC?

WACC 2=__________%

Reference no: EM131100891

Questions Cloud

Discuss the individual childhood and family circumstances : With this assignment, choose an individual who is either a well-known celebrity or historical figure. You will need to discuss the individual's childhood and family circumstances. You must make a case for the diagnosis and not choose an individual..
Establish a session with the other person on skype : Find a classmate or other person who will work with you. Download the latest version of a video conferencing program such as Skype and establish a session with the other person.
Contitutional issues does this law raise : California passed a law prohibiting any transporting of nuclear waste in the state unless the company doing so is a resident or is owned by residents of California. What contitutional issues does this law raise?
Create powerpoint presentation for the executive committee : Create the PowerPoint presentation for the executive committee and CIO of Riordan Manufacturing. Format according to APA guidelines. Submit your assignment using the Assignment Files tab above.
What is the company wacc : 1. Miller Manufacturing has a target debt-equity ratio of .40. Its cost of equity is 15 percent, and its cost of debt is 6 percent. If the tax rate is 40 percent, what is the company's WACC?
Create a strategic plan : Identify a current business problem through research. Based on this situation, create a strategic plan to identify the issue, provide a solution to the problem, and associate the scenario to a learning objective from our course.
Global code of conduct : Do you think global businesses would be willing to subscribe to a global code of conduct?
Decision to display ads to customers : Advertisers use different kinds of "profiles" in the decision to display ads to customers. Identify the different types of profiles described in this case and explain why they are relevant to online display advertising?
How could you use research techniques : Summarize the four major research designs - surveys, observation, experiment, and existing sources/secondary analysis and how could you use research techniques.

Reviews

Write a Review

Business Management Questions & Answers

  Managing high performance delegationdelegation is one of

managing high performance delegationdelegation is one of the basic activities of front-line supervisors and managers.

  Why would john be considered a deviant?

Why would John be considered a deviant? What social foundations of deviance appear to be evident in this case?

  Adverse impact of selection methods

Discuss and describe the actual and potential reasons for the shortage of female pilots. i.e. adverse impact of selection methods, lack of presence in academic programs relevant for the field, discrimination,

  Change in management

Explain how do you think management will evolve over the next 5-10 years -

  Explain what federal agency would prosecute crime

Identify the crime and explain what federal agency would prosecute the crime - What punishments could be enforced and provide other real-life examples of people who have committed this crime.

  Isolation of independent and dependent variable

I am just having a terrible time with isolation of independent variable(s) versus dependent variable(s) in this scenario.

  What is a reference group

What is a reference group? Describe three different types of reference groups that can have an impact on a consumer's purchasing behavior.

  What is meant by uncertainty avoidance

What is meant by uncertainty avoidance and what are the elements of risk involved in uncertainty avoidance?

  Strategic leaders efficiently manage their firm''s resource

How do strategic leaders efficiently manage their firm's resource portfolio such that its core competencies are exploited and the human capital also social capital

  What categories of data are hard or impossible to find

What categories of data are hard or impossible to find on the Internet? When using the Internet, be sure to provide specific websites or URLs.

  Explain corporate responsibility and corporate philanthropy

Explain What are the differences between corporate responsibility and corporate philanthropy and Explain how a business benefits when it has an impact on the community

  Provide a brief summary of the article or documentary

Provide a brief summary of the article or documentary. What was the vision, and what were the goals, of the leader or organization? How did the leader(s) motivate others and foster commitment? What was the outcome? Where the goals achieved? How, or, ..

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