What is the companies WACC

Assignment Help Accounting Basics
Reference no: EM133052713

Question - A Company has a target debt/equity ratio of 0.40.  Its cost of equity is 18% and its cost of debt is 10%. If the tax rate is 30%, what is the companies WACC?

Reference no: EM133052713

Questions Cloud

Organizations are struggling to reduce : Organizations are struggling to reduce and right-size their information foot-print, using data governance techniques like data cleansing and de-duplication.
Prevention of malicious attacks : Students will assess actual security breaches and think critically about the cause, impact, continuity, and prevention of these malicious attacks.
Different techniques for methodologies and applications : How do each of these methodologies and applications help organizations make decisions? Cite at least four different techniques:
Stopping condition in all recursive algorithm : Describe what the stopping condition in the recursive binary search is, including why it is important to include a stopping condition in all recursive algorithm
What is the companies WACC : A Company has a target debt/equity ratio of 0.40. Its cost of equity is 18% and its cost of debt is 10%. If the tax rate is 30%, what is the companies WACC
What do you mean by referendum : 1. What do you mean by Referendum? 2. What do you mean by Brexit? What currency is used in Britain?
Describe reasons for partitioning hard drive : Describe reasons for partitioning a hard drive and explain how partitioning is done on a Windows machine.
Common assumptions that serve as the bedrock : Culture eats strategy for breakfast" -Laszlo Bock (former head of HR at Google) - Using course content and terminology, first outline why culture is so vital to
What january cash disbursements for manufacturing overhead : All other fixed manufacturing overhead costs represent current cash flows. What the January cash disbursements for manufacturing overhead

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