Acme debt-equity ratio and wacc

Assignment Help Finance Basics
Reference no: EM131041719

The ACME Suction Cup company has $4,500 of debt and $10,500 of common stock equity. The total value of the company is $15,000. The company's cost of equity is 11.5 percent, the cost of debt is 5.9 percent and the relevant tax rate is 35 percent.

What is ACME's debt-equity ratio and WACC?

Reference no: EM131041719

Questions Cloud

Was the landlord a holder of the note : Sanders borrowed $5,000 from Waskow, giving Waskow a promissory note that read, “One year from date, I promise to pay to the order of James Waskow $5,000, without interest (signed) Mary Sanders.” Six months later, Waskow died. The unendorsed note was..
Start a new project and package : Write your own name and that of your programming partner on the top of page. Start a new project and package called PA3 and set up your programs inside.
Several different channel arrangements-logistics channel : Channel members work together in several different channel arrangements such as (1) ownership channel, (2) negotiation channel, (3) financing channel, (4) promotions channel, and (5) logistics channel. Select two and discuss how IT technology (such a..
Incompatible corporate cultures and globalization challenges : Chapter 5 discusses six barriers to supply chain management implementation of which two described are incompatible corporate cultures and globalization challenges. Discuss how these two potential barriers are related and how advances in technology (i..
Acme debt-equity ratio and wacc : The ACME Suction Cup company has $4,500 of debt and $10,500 of common stock equity. The total value of the company is $15,000. The company's cost of equity is 11.5 percent, the cost of debt is 5.9 percent and the relevant tax rate is 35 perc..
How only the slightest variations in supply chain process : Discuss how only the slightest variations in a supply chain process up front can greatly multiply to extremely large variations later downstream (i.e. the “Bullwhip effect”). Discuss how over reaction and panic by supply change managers can lead to t..
Show to recover damages from express delivery : Dixie, a driver for Express Delivery Company, leaves the truck's motor running in neutral and carelessly forgets to set the parking brake while she makes a delivery. The truck rolls and crashes into a nearby gas station pump, igniting a fire that spr..
Eproducts corporation market competing software products : Data Analytics, Inc., and eProducts Corporation market competing software products. Data Analytics launches an advertising campaign claiming that eProducts, instead of testing software before it is marketed, has customers “test” the software by using..
Purpose of five distributive bargaining negotiation skills : Discuss two of the following statements then respond to at least two of your classmates’ postings. Define and explain the purpose of the Five Distributive Bargaining Negotiation Skills. Discuss the “Zone of Possible Agreement” (ZOPA) and why some exp..

Reviews

Write a Review

Finance Basics Questions & Answers

  Edwards enterprises follows a moderate current asset

edwards enterprises follows a moderate current asset investment policy but it is now considering a change perhaps to a

  Ace manufacturing has entered into a supply agreement

Ace manufacturing has entered into a supply agreement with KB toys. KB is very concerned about meeting competitive price points in a profitable way. As a result, they are looking to keep costs as low as possible while delivering a quality product on ..

  Abc corporationnbspnbspis considering an expansion

abc corporationnbspnbspis considering an expansion project.nbspnbspto date they have spent 150000 investigating the

  What would happen to the break-even point if the selling

the weaver watch company sells watches for 20 the fixed costs are 150000 and variable costs are 15 per watch.1.what is

  How much must the speculator initially remit

The futures price of corn is $2.00. The contracts are for 10,000 bushels, so a contract is worth $20,000. The margin requirement is $2,000 a contract, and the maintenance margin requirement is $1,200.

  Kelley wants to purchase shares in classic kars inc but is

kelley wants to purchase shares in classic kars inc. but is torn between buying shares of common stock or shares of

  How do you improve volatility hedge effectiveness

How do you improve volatility hedge effectiveness using delta neutral and delta gamma to improve hedge effectiveness?

  Wat type of ratios best measure the short-term ability of

what type of ratios best measure the short-term ability of the enterprise to pay its maturing obligations and to meet

  Compute the firm gain or loss

The Niendorf Company produces tea kettles which it sells for $15 each. Fixed costs are $700,000 for output up to 400,000 units. Variable expenses $10 per kettle.

  Full-time and part-time implications

What implications do these changes have for employee motivation and involvement in organization? What lessons must people seeking jobs learn from experiences of these employees?

  What is the price of the bonds

Renfro Rentals has issued bonds that have a 11% coupon rate, payable semiannually. The bonds mature in 6 years, have a face value of $1,000, and a yield to maturity of 9%. What is the price of the bonds? Round your answer to the nearest cent.

  What would the equal monthly payments be

The terms of the loan require that your friend make 12 equal end-of-month payments each year for 6 years, and then an additional final (balloon) payment of $5,500 at the end of the last month. What would the equal monthly payments be?

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