Target debt-equity ratio, Miller Manufacturing has a target

Target debt-equity ratio

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Reference no: EM131861989

1. Miller Manufacturing has a target debt-equity ratio of .50. Its cost of equity is 15 percent, and its cost of debt is 4 percent. If the tax rate is 34 percent, what is the company’s WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).) WACC

2. Find the yield to call for a 8% coupon, $1,000 par 15 year bond selling at $1115.45 if the bond is callable in 9 years at a call price of $1,080. The bond makes semiannual coupon payments.

Reference no: EM131861989

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Target debt-equity ratio : Miller Manufacturing has a target debt-equity ratio of .50. Its cost of equity is 15 percent, and its cost of debt is 4 percent.

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