calculate wacc and rate of return, Accounting Basics

Assignment Help:

Calculate WACC and Rate of Return

Capital Structure:

50% debt and 50% equity financing
Current cost of debt is 2% above prime (Prime is currently 2.5%)
cost of equity is estimated to be 20%
Marginal tax rate is 37%

Investment:

Equipment that costs $850,000
Installation Fees of $10,000
Updates every year $2,000 (assuming they dont need a update until the end of the first year)

My work:
Capitalizing on the equipment, we have $860,000

 

 

Please help me in this Assignment, Expertsmind Experts need ypus Assistance


Related Discussions:- calculate wacc and rate of return

Common adjustments in balance sheet, COMMON ADJUSTMENTS AFFECTING THE PREPA...

COMMON ADJUSTMENTS AFFECTING THE PREPARATION OF BALANCE SHEET ARE: 1. Closing stock :  Closing stock come into view on the credit side of trading account and assets side of

How to create account for barter transactions?, How to create account for b...

How to create account for barter transactions? As My Company is providing a service to another company and that company is reimbursing us with his service.

Show the examples of long-term assets, Q. Show the examples of long-term as...

Q. Show the examples of long-term assets? Property, plant, and equipment are assets with helpful lives of more than one year a company acquires them for use in the business r

After the closing entries are posted to the ledger, After the closing entri...

After the closing entries are posted to the ledger, each revenue account will have a zero balance: a. a zero balance, b. a debit balance, c. a credit balance, or d. either a debi

Accounting treatment of CST, What is journal entry for Input CST which are ...

What is journal entry for Input CST which are paid at the time of purchases of goods from other state.

Bill for services, You have been asked to ready a bill for services. What i...

You have been asked to ready a bill for services. What information should be contained in the bill? Ans) Service Provider's Details (i.e) Organization name and address. Ser

Importance of accounting in the public sector, Problem 1: i) Assess th...

Problem 1: i) Assess the importance of accounting in the Public Sector. ii) How far has the Governmental Accounting Standards Board (GASB) changed financial reporting, ass

External users of accounting information, Q. External users of accounting i...

Q. External users of accounting information? The external users of accounting information grouped into groups; everyone has different interests in the company and wants answers

Find the balance at the end of 6 years of $5000 investment, Find the balanc...

Find the balance at the end of 6 years of $5000 investment in an account with a nominal annual rate of interest of 2.5% compounded quarterly over the first two years and then gro

State the term - partnership, State the term - Partnership A partnershi...

State the term - Partnership A partnership exists where at least two individuals carry on a business together with intention of making a profit. Partnerships have much in commo

Write Your Message!

Captcha
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