Reference no: EM133081499
Question - Amber's company has Rp 50,000,000 in assets which is funded with Rp 20,000,000 debt and Rp 30,000,000 equity. Amber's current beta is 1.4 and the tax rate is 40%.
a. Using Hamada's equation, calculate the unlevered beta or bU.
b. What happens to Amber's beta when the company changes its capital structure to Rp 30,000,000 debt and Rp 20,000,000 equity?
c. What is the company's cost of capital if the company changes its capital structure to IDR 30,000,000 debt and IDR 20,000,000 equity? (Hint: Risk free rate 6%, Cost of debt 10%, and Market risk premium 6%).
|
What project should PT Neoland accept
: To anticipate risks that may arise unexpectedly, PT Neoland decided to increase 3% WACC for projects with a high risk level, What project PT Neoland accept
|
|
About apple strategy
: What is there about Apple's strategy that can lead to sustainable competitive advantage? Does Apple's strategy seem to set it apart from rivals?
|
|
Analyze the ways financial information
: Analyze the ways financial information is used in health care organizations.
|
|
Calculate the expected price of the stock at the end
: PT Elyksion Communication is experiencing rapid growth. Calculate the expected price of the stock at the end of the year at the end of Year 1 and Year 2
|
|
What is the company cost of capital
: What is the company's cost of capital if the company changes its capital structure to IDR 30,000,000 debt and IDR 20,000,000 equity
|
|
Suppliers access to sales and inventory data
: Walmart has made several changes in its data communication systems to improve its suppliers' access to sales and inventory data.
|
|
Discuss unique marketing characteristics product
: Discuss the unique marketing characteristics a product or service requires based on the specific phase of the product life cycle.
|
|
Find the gross pay and the deductions
: Find the gross pay, the deductions, and the net pay for Maria, then, record the payroll in the journal, assume the payroll was paid using cash
|
|
What is the company break even revenue
: -Profit for the period - P471,000The ending accounts receivable balance is the average during the year. What is the company break even revenue
|