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

  Computation of financial leverage and forcasting the eps

Computation of financial leverage and forcasting the EPS at change in sales and They also have outstanding 1 million shares of common stock

  Computation of equity capital contribution

Computation of equity capital contribution and Before Tax Cash Flow and After Tax Cash Flow and What is the Before-tax Cash Flow to the equity investor

  Describe theory on discounted cash flows method

Describe theory on discounted cash flows method in Capital Budgeting but assets cannot be valued soundly if we do not have well-functioning capital markets

  Calculation of npv and irr and mirr

Calculation of NPV and IRR and MIRR and Profitability Index and Besides future cash flows what other financial criteria would you consider in making your decision between two or more alternatives

  Calculate the npv

Bell Mountain Vineyards is considering updating its current manual accounting system with a high-end electronic system.  Calculate the NPV.

  Creating portfolio with expected risk free rate of return

What are some methods to create a portfolio with the expected risk free rate of return? Think of putting two stocks into a portfolio.

  Computation of yield to call of a bond

Computation of yield to call of a bond and What is their yield to call (YTC)

  Find the cycle service level

Find the cycle service level that the store achieves with this policy and What is the fill rate that the store achieves with this policy?

  Cost benefit analysis on proposed project

Suppose a discount rate of 5%, do a cost benefit analysis on this proposed project over a five year period giving a recommendation and numerical explanation for your recommendation.

  Calculation of irr and decision making

Calculation of IRR and decision making and What is the internal rate of return on an investment with the following cash flows

  Generic benchmarking worksheet

This Generic Benchmarking Worksheet includes 2 examples of each major section of the assignment:

  Marriage penalty-life annuity taxation

Howard and Beatrice plan to marry either immediately before or immediately after year-end. Based on tax considerations, what marriage date would you suggest for loving couple? How much would your choice save in taxes?

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