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. What is Unbilled training fees? A company may possibly perform services for customers in one accounting period while it bills for the services in a different accounting peri

Q. Modifying conventions on Materiality? The Materiality is a modifying convention that permits accountants to deal with immaterial (unimportant) items in an expedient however

Q. Describe about Assets? Assets are things of worth owned by the business. They are as well called the resources of the business. Illustration includes machines, cash and buil

Personal Account is an account for use by an individual for their own requirements. It is a relative term to distinguish the said accounts from those accounts for corporate or busi

All relevant information and explanations about a business have been included in its financial reports

What if the public holiday falls on a rest day? how to pay and which one is?

A good purchased for $480 sells for $700. If the store's operating expenses are 30% of cost, what is the percentage markup on cost? A. 1.5% B. 10.57% C. 15.83% D. 4

Q. What do you mean by Inventory turnover? Inventory turnover -- a ratio which indicates amount of inventory a company uses tosupport a given level of sales. Formula is: Invent

kind of information you would want to put on social media

How do you set up a t account correctly?