What is the firm wacc

Assignment Help Finance Basics
Reference no: EM131099257

A firm has a debt-equity ratio of .55 and a tax rate of 35 percent. Its cost of equity is 10.6 percent and its pre-tax cost of debt is 8.1 percent. What is the firm's WACC?

a. 8.28 percent

b. 8.71 percent

c. 9.40 percent

d. 9.71 percent

Reference no: EM131099257

Questions Cloud

Equivalent ambiguous and unambiguous : What do your answers to Exercises 4.48 and 4.49 say about the relative efficiency of parsers for equivalent ambiguous and unambiguous grammars? What about the relative efficiency of constructing the parser?
Ambiguous grammar for n binary infix operators : Assume that all operators are left-associative and that 6i takes precedence over (Ij if i > i a) Construct the SlR sets of items for this grammar . How many sets of items are there, as a function of n?
Find the tension at distance x from the end of the rope : Find the tension at distance x from the end of the rope. Neglect gravity
Find disease that is emerging in your community and discuss : You can look at statistics from your local health department or websites such as the Centers for Disease Control and Prevention. Find a disease that is emerging in your community and discuss. Give the rates and the duration of the increase of th..
What is the firm wacc : A firm has a debt-equity ratio of .55 and a tax rate of 35 percent. Its cost of equity is 10.6 percent and its pre-tax cost of debt is 8.1 percent. What is the firm's WACC?
Find the maximum value of the acceleration : find the maximum value of the acceleration.
What are the two main political parties in the united states : What are the two main political parties in the United States? What do these two parties stand for (their ideology-see the chart)? Your would desperately like to see a 3rd party participate in elections in the US.
What is black knight wacc : The firm has a pre-tax cost of debt of 7.7 percent. The risk-free rate is 3.8 percent and the market rate of return is 8.4 percent. What is Black Knight's WACC?
Construct an slr parsing table for the grammar : Resolve the parsing action conflict so that expressions will be parsed in the same way as by the LR parser in Fig. 4.52. Can every reduce/reduce conflict generated in the LR parsing table construction process be converted into a shift/reduce confl..

Reviews

Write a Review

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 ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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