Famas llamas has a wacc of 105 the companys cost of equity

Assignment Help Finance Basics
Reference no: EM13567441

Fama's Llamas has a WACC of 10.5%. The company's cost of equity is 14% and its cost of debt is 8%. The tax rate is 30%. What is Fama's target debt-equity ratio? (Assume a classical tax system.)

Reference no: EM13567441

Questions Cloud

Ace products sells its products for 22 each unit : ace products sells its products for 22 each. unit manufacturing cost are direct material 4 direct manufacturing labour
In your own words describe and discuss what invisible : essay question1. in your own words describe and discuss what invisible losses are how they came about what strategies
Star jet ltds ordinary shares have a beta of 13 if the : star jet ltds ordinary shares have a beta of 1.3. if the risk-free rate is 5 and the expected return on the market is
In your own words describe and discuss what invisible : introduction to community economic and social developmentessay question1. in your own words describe and discuss what
Famas llamas has a wacc of 105 the companys cost of equity : famas llamas has a wacc of 10.5. the companys cost of equity is 14 and its cost of debt is 8. the tax rate is 30. what
Consider an asset that costs 684600 and is depreciated : consider an asset that costs 684600 and is depreciated straight-line to zero over its seven-year tax life. the asset is
You have 250 000 to invest in a share portfolio your : you have 250 000 to invest in a share portfolio. your choices are shares in homestead ltd with an expected return of 16
Which of the following best describes sequential processing : which of the following best describes sequential processing? answer units must pass sequentially through a process.
Dingo ltd shares have a beta of 15 and an expected return : dingo ltd shares have a beta of 1.5 and an expected return of 16. shares in white shark ltd have a beta of 0.70 and an

Reviews

Write a Review

Finance Basics Questions & Answers

  In recent months there have been many news stories in the

in recent months there have been many news stories in the press about executive compensation with stock options.nbsp

  Determine the companys product or service

Suppose you are attending a managerial meeting, within your publicly held corporation, to hear a proposal for a possible corporate merger with a competitor.

  Financial analyst with ace gadgets

A senior financial analyst with Ace Gadgets (AG) is attempting to get a better grasp on sales forecasting for AG's new franchises. She has obtained various details for 27 existing franchises including (see associated spreadsheet):

  What is the operating cash flow

Your firm has net income of $322 on total sales of $1,300. Costs are $720 and depreciation is $120. The tax rate is 30 percent. The firm does not have interest expenses. What is the operating cash flow?

  Retirement problems

Retirement Problem : -    You realize that in the analysis above you forgot to include the impact of inflation. Recalculate the answer to # 22 assuming inflation is 3% per year (the real rate is 3.89%) and the 150,000 annually is stated in real dol..

  In this module you have been introduced to the capital

in this module you have been introduced to the capital asset pricing model capm. the required return can be determined

  Calculate the total cost in usd

Without a forward contract, what is the dollar-cost of the shipment if the spot exchange rate at the time of purchase is $0.75?

  How much must he deposit at the end of each year

Zheng Sen wishes to accumulate $1 million by the end of 20 years by making equal annual end - of -year deposits over the next 20 years. If Zheng Sen can earn 10 percent on his investments, how much must he deposit at the end of each year?

  Finance-share calculations

Compute the expected earnings per share (EPS) for ABC for each of the next five years (2010-2014) without the merger. What would ABC's stockholders earn in each of the next 5 years (2010-2014) on each of their ABC shares swapped for DEF shares a a r..

  Find the level of retained earnings

My company showed retained earnings of $400,000 on its balance sheet past year. This year, the company's earnings per share were $3 and its dividends paid each share were $1.00.

  The truck has a 9600 fmv when it is transferred to her

irene owns a truck costing 15000 and used for personal activities. the truck has a 9600 fmv when it is transferred to

  The variable cost per pack is 10 and at current annual

southwest us campus book store sells course packs for 16 each. the variable cost per pack is 10 and at current annual

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