Calculation of cost of capital using wacc formula

Assignment Help Finance Basics
Reference no: EM1315168

Calculation of Cost of Capital using WACC formula

Suppose we have determined the target capital structure. Interest rates are 5% in the US, 8% in Brazil, the corporate tax rates are 30% and 50%, respectively. The cost of equity is 12% in the US and 16% in Brazil. The company raises $20,000,000 is in the US equity market, $40,000,000 in the US debt market and (ISO BRL) R$80,000,000 in the Brazilian debt market. The spot F/X rate is R$1.80$ (1.80 Brazilian Real = $1). Find the weighted average cost of capital

Reference no: EM1315168

Questions Cloud

Calculation of share of profits to partners : Calculation of share of profits to partners - What will the profit and loss sharing ratios be after Delta's investment and determine if the subsidiary is operating in a highly inflationary economy
P-value for various values of test statistic : Assuming that these are a random sample of all publicly traded companies, construct a 95% confidence interval for the overall noncompliance proportion.
Computation of nash equilibrium : What is Nash Equilibrium output for his supposing that the two firms choose their production quantities simultaneously?
What price do you think this firm should charge : Illustrate what price do you think this firm should charge if it wants to maximize its short-run profit.
Calculation of cost of capital using wacc formula : Calculation of Cost of Capital using WACC formula where the company raises $20,000,000 is in the US equity market
Determining percent of garages take less hours to erect : Determine percent of the garages take between 29 hours and 34 hours to erect? Determine percent of garages take 28.7 hours or less to erect?
Assume which the benefit to the villagers of each additional : assume which the benefit to the villagers of each additional cow grazing on the commons declines as more cows graze
When did each car pass the gas station : A 61.0 kg skier encounters a dip in the snow's surface that has a circular cross section with a radius of curvature of 12.0 m .If the skier's speed at point A is 7.50 m/s (before entering dip), what is the normal force exerted by the snow on the skie..
Sales transaction in retail clothing : Examine different sales transactions. Design a context diagram and a level-0 diagram that represent the selling system at the store.

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!

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