Calculating wacc for american express

Assignment Help Finance Basics
Reference no: EM1343891

American Express common stock has a beta of 1.4. If the risk free rate is 8%. If the expected market return is 16% and American Express has 20 million of 8% debt, with a yield to maturity of 12% and a marginal tax rate of 50%, what is the WACC for American Express?

Reference no: EM1343891

Questions Cloud

Why would elasticity of demand be important to you : Why would elasticity of demand be important to you in determining the products on which the taxes should be levied".
Prepare a worksheet of operations activities : Prepare a worksheet of operations activities that Harrison should inquire about this summer and if you were Harrison, what would you do
Rbocs in mfj to retain control of yellow pages : One way to provide additional revenues for the RBOCs in the MFJ was to retain control of the Yellow Pages.
Cash conversion : What account on the balance sheet would an organization refer to for cash conversion and why?
Calculating wacc for american express : American Express common stock has a beta of 1.4. If the risk free rate is 8 percent. If the expected market return is 16 percent and American Express has 20 million of 8% debt.
How industries in the us can produce thousands tons wheat : Industries in the US also Europe can produce only two goods, cars also wheat. For given resources also technological how. Industries in the US can produce 1000 tons of wheat if no cars are produced.
Explaining network attacker steal secure google cookies : Explain how a network attacker (an active attacker that can intercept or forge network packets, etc.) could steal secure google.com cookies.
Amortize the discount for bonds : Tano issues bonds with a par value of $180,000 on January 1, 2008. The bonds' yearly contract rate is 8%, & interest is paid semi-annually on June 30 and December 31.
Evaluate what is qms weighted average cost of capital : Evaluate what is qms weighted average cost of capital -  target capital structure for qm industries is 35% common stock

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Calculate the value of security

Calculate the value of security and Value the financial instrument below using excel functions

  A preparation of a repayment schedule

A Preparation of a repayment schedule and Prepare an instalment loan repayment schedule for the first

  Objective type questions on portfolio management

Objective type questions on portfolio Management and What is the best estimate of the current stock

  Calculation of operating profit margin

Calculation of Operating Profit Margin and Time interest earned and find how Spectrum's financial performance compares to their Industry for each calculated ratio.

  Determination of current stock price also capital gains

Determination of current stock price also capital gains and The constant growth model cannot be used because the growth rate is negative

  Determining the cost of interest payment

ABC Inc. has CAD20,000,000 interest payment due on September 19th and is concerned about the possible CAD appreciation. Find out the USD cost of interest payment for ABC Inc?

  Information about cost of equity using capm

Find out the cost of equity of a firm that has a beta of 1.98 and a dividend yield of 6.58%? Suppose the risk free rate is 4.43% and the return last year of the S&P500 was 12.29%.

  Short description on credit risk analysis of the bond

Short Description on Credit risk analysis of the different bonds and explain why you would pay more or less for their bonds

  Stock valuation of hewlett-packard stock using of capm

Using the required rate of return calculated in part (a) and the Discounted Cash Flow Model, compute the intrinsic value of a share of Hewlett-Packard Stock. What assumptions, if any, was it necessary to make?

  Description of dividend policy

Discuss the advantages, disadvantages, and types of firms (e.g. growth oriented, mature, etc.) that might be likely to adopt each type of the following dividend policies:

  Computing net proceeds of an ipo

ABC is planning an IPO. Its underwriters say the stock the stock will sell at $20. The direct costs will be $800,000. The underwriters will charge a 7% spread. A - How many shares must be sold to net $30 million?

  Examine five stages of skill acquisition

Examine the five stages of skill acquisition. (1) Novice, (1) Advanced Beginner, (3) Competent, (4) Proficient, (5) Expert.

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