What is the debt-equity ratio

Assignment Help Finance Basics

Reference no: EM133910137

Problem

A levered firm has a pretax cost of debt of 6.8 percent and an unlevered cost of capital of 13.4 percent. The tax rate is 21 percent and the cost of equity is 16.06 percent. Get the instant assignment help. What is the debt-equity ratio?

Reference no: EM133910137

Questions Cloud

Physiologic changes and consequences of copd : Discuss at least three symptoms caused by physiologic changes and consequences of COPD.

Terms of knowledge and skills and personally : How do you hope you have changed in terms of knowledge and skills, and personally? Are there any words of caution you want to tell yourself-pitfalls to avoid?

What is the amount of any saver''s credit for retirement plan : Realizing that providing for a comfortable retirement is up to them. What is the amount of any saver's credit for retirement plan contributions?

What do you think makes good nurse : What do you think makes a good nurse ( in moral sense)? How do you plan to use the Code of Ethics in your daily practice?

What is the debt-equity ratio : A levered firm has a pretax cost of debt of 6.8 percent and an unlevered cost of capital of 13.4 percent. What is the debt-equity ratio?

What is the value of this firm to its shareholders : The firm owes its bondholders $87,000. The firm will operate for only one more year. What is the value of this firm to its shareholders?

Calculate the rate of return she earned on this bond : Three years later, Susan sold this bond at a price of $1,020. Calculate the rate of return she earned on this bond over her 3-year investment period.

Which two benefits can rihanna get from using credit instead : Rihanna wants to purchase a dishwasher and is shopping around. Which two benefits can Rihanna get from using credit instead of cash for her purchase?

What is the default risk premium of xyzs bond : Currently a 10-yr treasury bond has a yield rate of 4.5%. What is the default risk premium of XYZ's bond?

Reviews

Write a Review

Required(*) Message

Finance Basics Questions & Answers

Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

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!

Submit Assignment

User Account

All Pages