User Account

All Pages

Calculate the weighted average cost of capital

Assignment Help Finance Basics
Reference no: EM132481637

Use the following information to calculate the weighted average cost of capital (WACC) for this company.

Cost of equity                                    17%

Cost of debt                                       8%

Cost of preferred stock                      10%

Value of current assets                       $15,000,000

Value of fixed assets                          $55,000,000

Corporate tax rate                              25%

Personal tax rate                                37%

Value of equity                                  $20,000,000

Value of debt                                     $50,000,000

Value of preferred stock                    $0  

A) 9.15%

B) 8.93%

C) 10.25%

D) 11.48%

Multiple choice. Answer needs to be one of the above options. Please include steps

Reference no: EM132481637

Questions Cloud

Determining the investment return-investment return : HillCom Corp stock was $75.10 per share at the end of last year. Since then, it paid a $2.60 per share dividend last year. The stock price is currently $78.10.
How values and norms which make up the dominant culture : How values and norms which make up the dominant culture in America today are rapidly changing. Americans are now more accepting of divorce
Which month maturity do you have to use : State the date you enter into the silver future contract and future price last closing price) that you determined. * Use the same date and closing price
Explanation of the relationship between racism and privilege : Describe the impact of discrimination on individuals of multiracial backgrounds. Describe the impact of biracial/multiracial or multiethnic distinction.
Calculate the weighted average cost of capital : Use the following information to calculate the weighted average cost of capital (WACC) for this company.
Write about the autism spectrum disorder : Recommended topic: Autism Spectrum Disorder and the Transition and Adult Years. Please follow APA style and the rubric included in the syllabus.
Fundamental risk-implementation costs and model risk : The 3 limits to arbitrage in behavioral finance are: fundamental risk, implementation costs, and model risk. Choose 2 of the 3 limits above and explain them?
How did your responses affect other aspects of your life : Identify a present or past stressor that you have experienced. Describe your physiological and emotional responses to the stressor.
What is the stock price the day the stock : A stock sells for $45 rights-on, new shares can be purchased at subscription price of $41 per share. Seven rights are required to purchase one share.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd