What is the company cost of capital

Reference no: EM13266449

A company is 40 % financed by risk free debt. the interest rate is 10 %, the expected market risk premium is 8 %, and the beta of the company's common stock is 0.5. What is the company cost of capital ? what is the after tax WACC, assuming that the company pays thax at a 35 % rate ?

Reference no: EM13266449

Questions Cloud

Defien the shielding of electrons gives rise to an effective : The shielding of electrons gives rise to an effective nuclear charge,Zeff, which explains why boron is larger than oxygen. Estimate the approximate Zeff felt by a valence electron of boron and oxygen, respectively

Determine the flux density and voltage supplied : A magnetic circuit constructed of sheet steel has an average length of 1.3 m and a cross sectional area of 0.024msq. a 50 turn coil wound on the ring has a resistance of .82ohms and draws 2a from a dc supply.

What is the bond nominal coupon interest rate : O'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years. Their nominal annual, not semiannual yield to maturity is 9.25%, they pay interest semiannually, and they sell at a price of $1,175. What is the bond's nominal ..

What gravitational force does each exert on the other : The centers of a 11.0kg lead ball and a 150g lead ball are separated by 7.00cm. What gravitational force does each exert on the other

What is the company cost of capital : what is the after tax WACC, assuming that the company pays thax at a 35 % rate ?

How to prepare a design using an ideal opamp : The design specifications for a simple inverting amplifier require an input resistance of 10kOhm and a voltage gain, A=-6.2 a) prepare a design using an ideal OpAmp b)If a real OpAmp with the properties: Ri=2MOhm, A=200k, Ro=75Ohm

What is classical frequency of molecule : A molecule absorbs a 2.5 eV photon and transitions from the n=0, l=0 state to the n=1, l=0 state. What is its classical frequency

Design a non-inverting amplifier with a voltage gain : Design a non-inverting amplifier with a voltage gain of approximately 12 with an input resistance of 12kOhm. Use SPICE to confirm the result using a simple model of the OpAmp

What is the temperature on the fahrenheit scale : Your taking a trip to a mysterious island where the temperature this time of year is usually about 230k. What is the temperature on the Fahrenheit scale

User Account

All Pages