What is the given company wacc

Assignment Help Finance Basics

Reference no: EM131956782

Question: Company ABC has debt of $300M (market value) with a YTM of 7%, and its equity market value is $700M with a beta of 1.5. If the market risk premium is 5% and the risk free rate is 3%, what is the Company ABC's WACC? Assume a tax rate of 40%. (Enter your answer as a percentage, i.e. if your answer is 5.25%, enter your answer as 5.25, not 0.0525. Round two to decimal places at the end).

Reference no: EM131956782

Questions Cloud

The lottery company have to invest today to cover obligation : If Treasury securities earned 5% APR compounded monthly, how much would the lottery company have to invest today to cover its obligation?

Discuss five or more security and privacy issues : Identify and discuss five or more security and privacy issues that could impact a company's ability to benefit from its intellectual property

Determine the amount of each deposit if the fund earns : To accomplish this, the investor plans to make constant deposits at the end of each year, the final payment made one year prior to the end of the investment.

Advise abc sport and john on the taxation issues : Advise ABC Sport and John on the taxation issues arising from the above fact situation. Reference should be made to appropriate legislation, case law

What is the given company wacc : Company ABC has debt of $300M (market value) with a YTM of 7%, and its equity market value is $700M with a beta of 1.5. If the market risk premium is 5%.

What was times interest earned ratio : During the previous year, a firm had sales of $230,000, cost of goods sold of $75,000, what was the times interest earned ratio?

Why is data loss prevention a critical concern : Why is data loss prevention a critical concern for enterprises and what can be done to control it?

What will the value of the bond s be if the going interest : Assume that only one more interest payment is to be made on Bond S at its maturity and that 10 more payments are to be made on Bond L.

Possible information about the most expensive : Retrieve all the possible information about the most expensive book that published by "New Math" publisher (the data should include authors).

User Account

All Pages