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
The comparative statements of Lucille Company are presented here. LUCILLE COMPANY Income Statements For the Years Ended December 31 First number are 2012 2012 then 2011

Recording Private Company Credit Card Sales Goes to the individual company-not a bank. Treated as a sale on account. Credit card Company is responsible for collection of

Q. Illustrate lower-of-cost-or-market method? Procter & Gamble markets a broad range of paper, cleaning, beauty care, health care, food, laundry and beverage products around th

How to create account for barter transactions? As My Company is providing a service to another company and that company is reimbursing us with his service.

Find the balance at the end of 6 years of $5000 investment in an account with a nominal annual rate of interest of 2.5% compounded quarterly over the first two years and then gro

Tips to be keep in mind while preparing the Financial Statements : 1. Objects given in the trial balance must be revealed only once as it is assumed that they are already adjust

How To figure the discount using calculator 1.  Be sure that decimal selector is on 2 decimal places 2.  Key in amount of the sale 3.  Multiply by percent (use the percent key)

Q. What is Inventory? Inventory -- Supply or stock of products and goods that a company has for sale. Amanufacturer may have 3 kinds of inventory: raw materials waiting to be c

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

Sam is trying to decide whether he should operate his business as a C cor- poration or as an S corporation. Due to potential environmental hazard problems, it is imperative that