What will its cost of equity be

Assignment Help Finance Basics
Reference no: EM13283636

Triangle Enterprises has no debt but can borrow at 9 percent. The firm's WACC is currently 14.7 percent, and there is no corporate tax. If the firm converts to 70 percent debt, what will its cost of equity be?

Reference no: EM13283636

Questions Cloud

Interference with contractual relations : Discuss the tort action of “Interference with Contractual Relations and Participating in a Breach of Fiduciary duty” and, if the bank you’ve chosen were to behave as JP Morgan did, would you be able to prevail in such a tort action
At what time after release of the first stone : An inquisitive physics student and mountain climber climbs a 55 m cliff that overhangs a calm pool of water. At what time after release of the first stone will the two stones hit the water
Calculate the cross-sectional area of the pyramid head : A Knoop microhardness measurement was made on a sample that resulted in a KHN of 481when a load of 5120 kg was applied. Calculate the cross-sectional area of the pyramid head
Find spacing between center of the nucleus and electrons : A material has a dielectric constant of εr=3.0 andhas an atomic density of 1028 atoms per cubic meter. If only two electrons in the outer orbital shell will distort with anapplied E-field, and both electrons follow the same orbital path asa pair
What will its cost of equity be : Triangle Enterprises has no debt but can borrow at 9 percent. The firm's WACC is currently 14.7 percent, and there is no corporate tax. If the firm converts to 70 percent debt, what will its cost of equity be?
How to determine the organic material in a dried lake bed : To determine the organic material in a dried lake bed, you have determined the percent carbon by mass at two different locations. In order to compare the means of the two different locations, you need to determine whether the standard deviations o..
The significance of the sistine chapel frescos : The significance of the Sistine Chapel frescos, Michelangelo's commission, and Michelangelo's working relationship with Pope Julius II.
What is the maximum price per share that abc should offer : XYZ's current price is $16.25. What is the maximum price per share that ABC should offer?
What is the magnitude of force that each sphere experiences : Two tiny conducting spheres are identical and carry charges of -29.4C and +70.0C. What is the magnitude of the force that each sphere experiences

Reviews

Write a Review

Finance Basics Questions & Answers

  Selling company new shares

The Norman Company needs to raise $50 million of new equity capital, Its common stock is currently selling for $50 per share. The investment bankers need an underwriting spread of 3% of the offering price.

  It implements a money market hedge

a. Determine the amount of dollars that Narto Co. will receive at the end of 1 year if it implements a money market hedge.

  What is the expected return on the equity

Backwards has $305 million of debt outstanding at an interest rate of 9 percent and $818 million of equity (market value) outstanding. What is the expected return on the equity with this capital structure?

  What was the nominal risk premium on oil town stock

What was the nominal risk premium on Oil Town's stock for the year?

  What rate should the shop report

Big Dom's Pawn Shop charges an interest rate of 27.3 percent per month on loans to its customers. Like all lenders, Big Dom must report an APR to consumers.

  Global investments-mergers questions

Which of the two long-term financing securities (debt or equity) would potentially maximize shareholder earnings more?

  Primary activities of financial manager

Determine the amount earned during the accounting period on each outstanding share of common stock is called, Included in the primary activities of financial manager,

  Computation of payroll accounting with taxes

Computation of payroll accounting with taxes and Compute the missing amounts in the chart provided

  What is the projected dividend for the coming year

The required return on this stock is 12 percent, and the stock currently sells for $80 per share. What is the projected dividend for the coming year?

  Determine the estimated risk premium

Please list any three components or any yield or return on investment. Determine the estimated risk premium of a certificate of deposit that matures in ten years and has a yield or return of 14%?

  Question of finance problem and time value of money

You own a pipeline which will generate a $2 million cash return over coming year. The pipeline's operating costs are negligible. What is the PV of the pipeline's cash flows if its cash flows are assumed to last forever? What is the PV of the cash flo..

  Computation of variance and standard deviation

Computation of Variance and standard deviation of a portfolio and what is the expected return of the portfolio

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