What is EZCUBEs asset beta

Assignment Help Financial Management
Reference no: EM13911345

EZCUBE Corp. is 58% financed with long-term bonds and 42% with common equity. The debt securities have a beta of 0.23. The company’s equity beta is 1.17. What is EZCUBE’s asset beta? (Do not round intermediate calculations. Round your answer to 3 decimal places.)

Beta of assets:

Reference no: EM13911345

Questions Cloud

Compute the fica taxes for each employee and the employee : The biweekly taxable wages for the employees of Wee Ones Foods follow.Compute the FICA taxes for each employee and the employer's FICA taxes.
Compute the amount of fica taxes that should be withheld : Compute the amount of FICA taxes that should be withheld fromher:
Eric sherm began working as a part time waiter on april : Eric Sherm began working as a part time waiter on April 1, 2013, at Yardville Restaurant.
Moisa evans is a maitre d'' at red rock club : Moisa Evans is a maitre d' at Red Rock Club. On September 5, his gross pay was $900 (three days working, one paid vacation day, and one paid sick day).
What is EZCUBEs asset beta : EZCUBE Corp. is 58% financed with long-term bonds and 42% with common equity. The debt securities have a beta of 0.23. The company’s equity beta is 1.17. What is EZCUBE’s asset beta?
Postage stamps per year to the us postal service : Consider a project to supply 117 million postage stamps per year to the U.S. Postal Service for the next five years. You have an idle parcel of land available that cost $2,070,000 five years ago; if the land were sold today, it would net you $2,270,0..
Compute the fica taxes to be withheld from each officers : The annual salaries paid each of the officers of Perez, Inc., follow. The officers are paid semimonthly on the 15th and the last day of the month. Compute the FICA taxes to be withheld from each officer's pay on
What is the pretax cost of debt : Jiminy's Cricket Farm issued a 30-year, 10.4 percent semiannual bond 9 years ago. The bond currently sells for 85.5 percent of its face value. The company’s tax rate is 30 percent. What is the pretax cost of debt? What is the aftertax cost of debt?
Calculating rates of return : Calculating the Number of Periods. Calculating Rates of Return. In 2011, an 1880-O Morgan silver dollar sold for $13,113. What was the rate of return on this investment?

Reviews

Write a Review

Financial Management Questions & Answers

  Straight line break even analysis implies

Straight line break even analysis implies that

  What is the firms weighted average cost of capital

A firm has debt of $90,000, equity of $140,000, a leveraged value of $100,000, a cost of debt of 6%, a cost of equity of 12%, and a tax rate of 40%. What is the firm's weighted average cost of capital?

  What is implied value of the warrants attached to each bonds

Neubert Enterprises recently issued $1,000 par value 15-year bonds with a 5% coupon paid annually and warrants attached. These bonds are currently trading for $1,000. Neubert also has outstanding $1,000 par value 15-year straight debt with a 9% coupo..

  Capital account assuming no statistical discrepancy

If the balance on the current account is $842 billion and the balance on the financial account is -$603 billion, what is the balance on the capital account assuming no statistical discrepancy?

  Statute of limitations affect income tax obligations

How does the Statute of Limitations affect income tax obligations? How does the Bankruptcy Code affect income tax obligations?

  What cash flows can an investor expect

Given a MPT with a starting pool balance of $1,000,000, whose underlying collateral is a group of 10 year FRMs with annual payments, interest rate on the underlying mortgages=10%, servicing fees=0.5%, and prepayment projected to be 10% annually, what..

  Firm has issued cumulative preferred stock

A firm has issued cumulative preferred stock with a $50 par value and a 8 percent annual dividend. For the past two years, the board of directors has decided not to pay a dividend. The preferred stockholders must be paid ________ prior to paying the ..

  Calculate the npv of the project using the apv method

A firm has decided to replace a major piece of industrial equipment. The equipment costs $690,000 to purchase and install and is expected to have a useful life of 5 years, after which it will be sold on the open market and is expected to have a salva..

  Contemplating replacing-use the opportunity cost

Fluid Dynamics Company owns a pump that it is contemplating replacing. The old pump has annual operating and maintenance costs of $8,000/year: it can be kept for 4 years more and will have a zero salvage value at that time. The old pump can be traded..

  Explain the spoilage in process costing

valuating capital budgeting projects. what is the pitfalls of balanced scorecard. explain the spoilage in process costing. explain difference between absorption costing and marginal costing

  How much should he set aside today for the purchase

Stephen plans to purchase a car 3 years from now. The car will cost $45,148 at that time. Assume that Stephen can earn 9.95 percent (compounded monthly) on his money. How much should he set aside today for the purchase?

  Flotation cost as a percentage of funds raised

The Raven Co. has just gone public. Under a firm commitment agreement, Raven received $15.30 for each of the 15 million shares sold. The initial offering price was $18.00 per share, and the stock rose to $20.10 per share in the first few minutes of t..

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