What is the wacc for this firm

Assignment Help Financial Management
Reference no: EM132007169

Suppose a firm has 26 million shares of common stock outstanding at a price of $37.6 per share. The firm also has 100,000 bonds outstanding with a current price of $1010.5.

The outstanding bonds have yield to maturity 6.7%. The firm's common stock beta is 2.2 and the corporate tax rate is 36%.

The expected market return is 15% and the T-bill rate is 4%. What is the WACC for this firm?

Weight of Equity (3 decimals) =

Weight of Debt (3 decimals) =

Cost of Equity (4 decimals) =

After tax Cost of Debt (4 decimals) =

WACC (4 decimals) =

Reference no: EM132007169

Questions Cloud

Estimate what would be the forecast for next years sales : Suppose a firm has had the following historic sales figures: 2009 $2,500,000 2010 $3,780,000 2011 $4,434,000 2012 $4,940,000 2013 $5,510,000.
What is the company wacc : Both bonds make semiannual payments. The tax rate is 34 percent. What is the company's WACC?
What are the ethical issues if any involved : Jones is also aware that the company's own R&D department is top notch, What are the ethical issues, if any, involved
Evaluate a health challenge of concern : HCS497: Health Education Capstone - Evaluate a health challenge of concern - What are the statistics and trends of this health concern
What is the wacc for this firm : The outstanding bonds have yield to maturity 6.7%. The firm's common stock beta is 2.2 and the corporate tax rate is 36%.
How much of purchase price was assigned to television rights : How much of the purchase price was assigned to television rights? Can the value assignable to television rights be amortized? If so, what is the expected life
What is the bond nominal yield to call : The bond has a 4% nominal yield to maturity, but it can be called in 3 years at a price of $1,025. What is the bond's nominal yield to call?
Find their charge for depreciation and amortization : Suppose a firm has earnings before interest, Taxes depreciation, and Amortization of $10 Million. They are in the 40% tax bracket.
What is the equilibrium market forecast : What is the equilibrium market forecast for 1-year rates 1 year from now?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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