Upton Umbrellas has a cost of equity of 11.2 percent, the YTM on the company's bonds...
Upton Umbrellas has a cost of equity of 11.2 percent, the YTM on the company's bonds is 5.8 percent, and the tax rate is 39 percent. The company's bonds sell for 93.2 percent of par. The debt has a book value of $396,000 and total assets have a book value of $948,000. If the market-to-book ratio is 2.62 times, what is the company's WACC?
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![Particulars Equity capital amount $2,114,688.00 (948000*2.62)-369072 [amount /total] market value weights 0.8514 cost of capi](http://img.homeworklib.com/questions/747aac80-717d-11ea-a1f3-598d8bb67c05.png?x-oss-process=image/resize,w_560)
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Upton Umbrellas has a cost of equity of 11.2 percent, the YTM on
the company's bonds...
Upton Umbrellas has a cost of equity of 12.1 percent, the YTM on the company's bonds...
Upton Umbrellas has a cost of equity of 12.1 percent, the YTM on the company's bonds is 6.2 percent, and the tax rate is 39 percent. The company's bonds sell for 103.7 percent of par. The debt has a book value of $423,000 and total assets have a book value of $957,000. If the market-to-book ratio is 2.89 times, what is the company's WACC?
Upton Umbrellas has a cost of equity of 12.1 percent, the YTM on the company's bonds...
Upton Umbrellas has a cost of equity of 12.1 percent, the YTM on the company's bonds is 6.2 percent, and the tax rate is 39 percent. The company's bonds sell for 103.7 percent of par. The debt has a book value of $423,000 and total assets have a book value of $957,000. If the market-to-book ratio is 2.89 times, what is the company's WACC? 9.96% 5.62% 8.49% 10.26% 8.35%
Upton Umbrellas has a cost of equity of 11.5 percent, the YTM on the company's bonds is 6.1 percent, and the tax rate i...
Upton Umbrellas has a cost of equity of 11.5 percent, the YTM on the company's bonds is 6.1 percent, and the tax rate is 39 percent. The company's bonds sell for 103.1 percent of par. The debt has a book value of $405,000 and total assets have a book value of $951,000. If the market-to-book ratio is 2.71 times, what is the company's WACC?
Upton Umbrellas has a cost of equity of 11.5 percent, the YTM on the company's bonds...
Upton Umbrellas has a cost of equity of 11.5 percent, the YTM on the company's bonds is 6.1 percent, and the tax rate is 39 percent. The company's bonds sell for 103.1 percent of par. The debt has a book value of $405,000 and total assets have a book value of $951,000. If the market-to-book ratio is 2.71 times, what is the company's WACC? 6 14 points Multiple Choice Skipped 8.13% eBook Print References 9.79% 9.49% 8.24% 5.43%
Upton Umbrellas has a cost of equity of 12.7 percent, the YTM on the company's bonds...
Upton Umbrellas has a cost of equity of 12.7 percent, the YTM on the company's bonds is 5.6 percent, and the tax rate is 40 percent. The company's bonds sell for 104.3 percent of par. The debt has a book value of $441,000 and total assets have a book value of $963,000. If the market-to-book ratio is 3.07 times, what is the company's WACC? Multiple Choice 10.62% 10.37% 8.49% 5.44% 8.33%
Skolits Corp. has a cost of equity of 11.3 percent and an aftertax cost of debt...
Skolits Corp. has a cost of equity of 11.3 percent and an aftertax cost of debt of 4.59 percent. The company's balance sheet lists long-term debt of $365,000 and equity of $625,000. The company's bonds sell for 105.1 percent of par and market-to-book ratio is 2.95 times. If the company's tax rate is 39 percent, what is the WACC? Multiple Choice 8.83% 10.78% 10.14% 9.84% 9.33%
Double-Major Co. has a cost of equity of 11.7 percent and an aftertax cost of debt...
Double-Major Co. has a cost of equity of 11.7 percent and an aftertax cost of debt of 4.47 percent. The company's balance sheet lists long- term debt of $345,000 and equity of $605,000. The company's bonds sell for 104.3 percent of par and market-to-book ratio is 2.83 times. If the company's tax rate is 40 percent, what is the WACC? Multiple Choice Ο 10.13% Ο 9.07% Ο 10.44% Ο 11.10% Ο 9.60%
The Two Dollar Store has a cost of equity of 10.8 percent, the YTM on the...
The Two Dollar Store has a cost of equity of 10.8 percent, the YTM on the company's bonds is 6.1 percent, and the tax rate is 35 percent. If the company's debt–equity ratio is .55, what is the weighted average cost of capital?
Wentworth's Five and Dime Store has a cost of equity of 11.2 percent. The company has an aftertax cost of debt of 4.8 pe...
Wentworth's Five and Dime Store has a cost of equity of 11.2 percent. The company has an aftertax cost of debt of 4.8 percent, and the tax rate is 39 percent. If the company's debt–equity ratio is .72, what is the weighted average cost of capital? 6.39% 7.30% 8.52% 6.69% 7.74%
Return ta Edgehill, Inc. has 335,000 bonds outstanding. The bonds have a par value of $1,000,...
Return ta Edgehill, Inc. has 335,000 bonds outstanding. The bonds have a par value of $1,000, a coupon rate of 5.6 percent paid semiannually, and 13 years to maturity. The current YTM on the bonds is 5.8 percent. The company also has 8.5 million shares of stock outstanding, with a market price of $31 per share. What is the company's market value debt-equity ratio? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) %...
Upton Umbrellas has a cost of equity of 11.5 percent, the YTM on the company's bonds is 6.1 percent, and the tax rate is 39 percent. The company's bonds sell for 103.1 percent of par. The debt has a book value of $405,000 and total assets have a book value of $951,000. If the market-to-book ratio is 2.71 times, what is the company's WACC?
Upton Umbrellas has a cost of equity of 11.5 percent, the YTM on the company's bonds is 6.1 percent, and the tax rate is 39 percent. The company's bonds sell for 103.1 percent of par. The debt has a book value of $405,000 and total assets have a book value of $951,000. If the market-to-book ratio is 2.71 times, what is the company's WACC? 6 14 points Multiple Choice Skipped 8.13% eBook Print References 9.79% 9.49% 8.24% 5.43%
Double-Major Co. has a cost of equity of 11.7 percent and an aftertax cost of debt of 4.47 percent. The company's balance sheet lists long- term debt of $345,000 and equity of $605,000. The company's bonds sell for 104.3 percent of par and market-to-book ratio is 2.83 times. If the company's tax rate is 40 percent, what is the WACC? Multiple Choice Ο 10.13% Ο 9.07% Ο 10.44% Ο 11.10% Ο 9.60%
Return ta Edgehill, Inc. has 335,000 bonds outstanding. The bonds have a par value of $1,000, a coupon rate of 5.6 percent paid semiannually, and 13 years to maturity. The current YTM on the bonds is 5.8 percent. The company also has 8.5 million shares of stock outstanding, with a market price of $31 per share. What is the company's market value debt-equity ratio? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) %...
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