How will this likely affect its wacc

Assignment Help Finance Basics
Reference no: EM13263870

If the chosen firm grows at its internal growth rate, increasing assets only with its retained earnings, how will this likely affect its WACC? Show calculations.
Internal Growth Rate=2.82%
Retained Earnings=$1,782,000,000
WACC=$3.25%

Reference no: EM13263870

Questions Cloud

What will the cash flows for this project be : The truck will have no effect on revenues, but it is expected to save the firm $23,600 per year in before-tax operating costs, mainly labor. The firm's marginal tax rate is 34 percent.
Find the linear density of this string : The equation of a transverse wave on a string is y = (2.0 mm) sin[(19 m-1)x - (625 s-1)t]. The tension in the string is 11 N. Find the linear density of this string
Explain why then do even use jfets as amplifiers : Why then do we even use JFETs as amplifiers. What is it that make them attractive even though they are non-linear. How do we minimize the effect of their non-linearity
Calculate the angular wave number : A wave has angular frequency 140 rad/s and wavelength 1.60 m. Calculate the angular wave number
How will this likely affect its wacc : If the chosen firm grows at its internal growth rate, increasing assets only with its retained earnings, how will this likely affect its WACC? Show calculations.
Find the velocity of the first proton after the collision : A proton moving at v1 = 7.9Mm/s collides elastically and head-on with a second proton moving in the opposite direction at v2 = 8.6Mm/s. Find the velocity of the first proton after the collision
What is the pv of the project : a project has a forecast cash flow of $128 in 1 year and $139 in year 2. The interest rate is 7%, the estimated risk premium on the market is 12.00% and the project has a beta of .68.
Determine the boolean function that multiplexer implements : An 8x1 multiplexer has inputs A, B, and C connected to the selection inputs S2, S1, and S0, respectively. The data inputs I0 through I7, are as follows: I1 = I2 = I7 = 0; I3 = I5 = 1; I0 = I4 = D; and I6 = D'. Determine the Boolean function that t..
Calculate the heat input to the gas : Consider the process AB is this TS diagram for 2 moles of SO3 with all degrees of freedom active. calculate the heat input to the gas

Reviews

Write a Review

Finance Basics Questions & Answers

  Computation of value of bond and intrinsic value

Computation of value of bond and intrinsic value and Holding everything constant and assuming that the coupon is paid on a semiannual basis

  Compute the balance in accounts receivable

Orion Corporation reported accounts receivable totaling $3,500. During the month, the corporation had credit sales of $5,000 and collected cash on accounts of $6,000.

  What is cj cos cost of equity

CJ Co stock has a beta of 0.9, the current risk-free rate is 5.6, and the expected return on the market is 13 percent. What is CJ Co's cost of equity?

  Academic approach-time value of money

What is the "time value of money" and how does it affect a financial manager's decision regarding cash flows? What is an annuity? Why might annuities be useful to a corporation?

  What is the total annual cost of operating

Assume the firm could earn 10 percent on short term investments; further assume 260 working days, and hence 260 transfers from each lockbox location per year. What is the total annual cost of operating the lockbox system?

  Preparing amortization schedule using effective rate

National Orthopedics Co. issued 9% bonds, dated January 1, with the face amount of $500,000 on January 1, 2011.  Develop an amortization schedule that determines interest at the effective rate each period.

  Scenario analysis

Your Company, Agrico Products, is considering the purchase of a tractor that will have a net cost of $36,000, will increase pre-tax operating cash flows before taking account of depreciation effects by $12,000 per year,

  Merger case study-general electric

For this SLP, think about your SLP company and the possibility of it merging with another company. Write down a two to three page paper answering the following questions:

  Compute stock price per share

After using the corporate valuation model, the value of a company's operations is found to be $400 million. The balance sheet shows $20 million in short-term investments that are not related to operations.

  What will be the percentage increase in company earnings

Maxvill Motors has annual sales of $15,000. Its variable costs equal 60% of its sales and its fixed costs equal $1,000. If the company's sales increase 10%, what will be the percentage increase in the company's earnings before interest and taxes (..

  What is the total rate of return on the stock

Rate of Return: A stock is selling today for $40 per share. At the end of the year, it pays a dividend of $2 per share and sells for $44. What is the total rate of return on the stock? What are the dividend yield and percentage capital gain?

  Price of the product when it was scarce

What is the product, and why do you think it became scarce? What happened to the price of the product when it was scarce?

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