calculate wacc and rate of return, Accounting Basics

Calculate WACC and Rate of Return

Capital Structure:

50% debt and 50% equity financing
Current cost of debt is 2% above prime (Prime is currently 2.5%)
cost of equity is estimated to be 20%
Marginal tax rate is 37%

Investment:

Equipment that costs $850,000
Installation Fees of $10,000
Updates every year $2,000 (assuming they dont need a update until the end of the first year)

My work:
Capitalizing on the equipment, we have $860,000

 

 

Please help me in this Assignment, Expertsmind Experts need ypus Assistance

Posted Date: 2/14/2013 2:45:44 AM | Location : United States







Related Discussions:- calculate wacc and rate of return, Assignment Help, Ask Question on calculate wacc and rate of return, Get Answer, Expert's Help, calculate wacc and rate of return Discussions

Write discussion on calculate wacc and rate of return
Your posts are moderated
Related Questions
Q. Learning objectives of inventory turnover ratio? - Net income for an accounting period depends straight on the valuation of ending inventory. - If the ending inventory is

Webster, Inc. began operations at the start of the present year, having a production target of 60,000 units. Real production totalled 60,000 units, and the company sold 95% of its

Enumerate the term- Cash discounts Offered to encourage prompt and early payment by buyer. Cash discounts are recorded in accounting records of both the buyer and the seller. S

Scott Manufacturing Co.'s static budget at 10,000 units of production includes $40,000 for direct labor and $4,000 for electric power. Total fixed costs are $23,000. At 12,000 un


It is a national organization of female accountants in America that plans to further the interests of women in the accounting career. The American Society of Women Accountants (ASW

Q. Learning objectives of current ratio? - Analyze the transactions by examining source documents. - Journalize the transactions in the journal. - Post the journal entrie

Q. What is Intangible Assets? Intangible Assets are items likecopyrights, patents, licenses, trademarks, franchises andother kinds of rights or things of value to a company tha

Your individual coursework portfolio addresses the following learning outcomes: ? Discuss the corporate governance issues and the duty of care of the directors of limited companies

In addition, assume that Anheuser-Busch InBev sold 200 million barrels of beer during the year. Assume that variable costs were 75% of the cost of goods sold and 40% of selling,