Determine the weighted average cost of capital, Finance Basics

1. The current interest rate is 6.83%. CanGo.com's stock has a beta of 2.0. Estimate the cost of equity.

2. CanGo.com has a bond with a semiannual coupon rate of 9% and 5 year maturity. Currently it is traded at $961.39. Determine the cost of debt.

3. The preferred stock of CanGo.com o§ers $1.21 annual dividend and currently is traded at $11 per share. Determine the cost of preferred stock for CanGo.com.

4. CanGo.com has the targeted capital structure of 30% debt, 60% equity, and 10% preferred stock. CanGo.comís tax rate is 30%. What is the WACC for CanGo.com's core business.

Posted Date: 2/21/2013 7:16:38 AM | Location : United States







Related Discussions:- Determine the weighted average cost of capital, Assignment Help, Ask Question on Determine the weighted average cost of capital, Get Answer, Expert's Help, Determine the weighted average cost of capital Discussions

Write discussion on Determine the weighted average cost of capital
Your posts are moderated
Related Questions
Contracting Cost - Agency Costs These are costs acquired in devising the contract between the shareholders and managers. The contract is drawn to ensure management act in t

Please describe the effect of financial leverage on a cost of equity and firm's equity beta.

We have 10.000 genes and 4.000 of them are annotated for a certain attribute of interest. a. If we have a single set of 10 genes, how many of them should be annotated to be cons

FASB Assignment

Define the direct finance and indirect finance in markets. In direct finance, borrower-spenders borrow funds directly by lenders into the financial markets through selling them

Parties include In Central Depository System 1. Government As like for the motive of attracting foreign supporting and investors the infrastructure of capital markets.

Present Value of Uneven Periodic Sum - DCF Technique As in investment decisions it is very rare to acquire even periodic returns and in most cases a company will generate a st


Methods or Techniques of Financial Forecasting 1. Use of Cash Budgets A cash budget is a financial statement showing as: a) Sources of capital and revenue cash inflows

Church Inc. is presently enjoying relatively high growth because of a surge in the demand for its new product. Management expects earnings and dividends to grow at a rate of 25% f