What are pretax return on capital

Assignment Help Accounting Basics
Reference no: EM132669776

Question - Given (in millions)

Revenue (Year 0): 56741

EBIT (Year 0): 10927

Tax rate: 35%

Total invested capital: 38119

Reinvestment rate (forecast period): 40%

Reinvested rate (stable): 60.46%

Stable growth rate: 4.25%

D/(D+E): 10%

E/(D+E): 90%

Equity Beta: 0.8

Pretax cost of Debt: 5%

Risk Premium: 4%

Required - What are "Pretax return on capital", "After tax return on capital", "Implied growth rate", "Cost of equity", "After tax cost of capital"?

Reference no: EM132669776

Questions Cloud

What bad debt expense would Dinty report : Credit sales for the year were $2,250,000, and cash collections from credit customers totaled $1,830,000. What bad debt expense would Dinty report
Discuss pros and cons of cloud-based backup operations : Discuss pros and cons of cloud-based backup operations. Discuss threats to an IT data center infrastructure and provide cloud-based solutions to mitigate the.
What did they contributed which formed canada today : Pre-history, described as the "period before Europeans made contact," is important because we should not only just learn from the records/ books that it written
Does writer make the barrier or issue clear in introduction : Review the draft capstone project paper assigned to you (from title page to reference page). Critique the draft by analyzing the content and providing extensive
What are pretax return on capital : What are "Pretax return on capital", "After tax return on capital", "Implied growth rate", "Cost of equity", "After tax cost of capital"
What is the balance in the refund liability account : During 2021, customers returned merchandise for credit of $31,200 to their accounts. What is the balance in the refund liability account at the end of 2021
Identify the inappropriate actions of Brown : Question - Identify the inappropriate actions of Brown and what should he have done in order to avoid those actions
How do find the basic earnings per share : Question - How do find the Basic Earnings Per Share and the Diluted Earnings Per Share? And how to calculate the preferred stock divdend
Differences in charismatic and transformational leadership : Explain the differences in charismatic and transformational leadership and how both leadership styles impact organizational effectiveness. Please note how.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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