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WACC = 0.30(0.055)(1 - 0.33) + 0.40(0.094) + 0.30(0.094 + 0.012)
WACC = 8.05%
So,
Weighted Average Cost of Capital = 8.05%
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What is the WACC of a company with the following capitalization. The company is in the 33% tax bracket, and floatation costs add 1.2% from the firm's perspective. Market Cost/ Allocation Expected Return 0.3 Debt 5.5% Retained Earnings 0.4 9.4% Common Stock (new issue) Not enough information 8.05% 10.6% 7.69%
What is the WACC of a company with the following capitalization. The company is in the 33% tax bracket, and floatation costs add 1.2% from the firm's perspective. Allocation Market Cost/ Expected Return Debt 0.3 5.5% Retained Earnings 0.4 9.4% Common Stock (new issue)
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Which of the following companies has the lowest after tax cost of debt. Company Market Cost of Debt Tax Bracket 10% 0.35 9% 0.2 12% 0.28 OB O A and B oc Ο Α
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The required return on retained earnings is 13%. The risk free rate is 2% and the Market Return is 9.5%. What is the company's beta? (hint: consider the CAPM) 0.47 O Cannot tell O 1.47 1.73
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What is the present value of a $2000, 10 year, annual ordinary annuity at a 4% annual discount rate (round to nearest dollar) 1351 18,422 O 16,222 O 249,122
According to Case 06 Exhibit 6.1, what is Company P Operating
Margin? Enter percentage, round to 2 decimal places.
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Trans-Pacific Industry & Technology Company Trans-Pacific Industry & Technology (TPIT), Inc. is a diversified industrial company. The Company owns businesses providing products & services to the energy, transportation, chemical, and construction sectors. The energy segment operates as an oil and natural gas contract drilling company the United States. The energy segment acquires, explores, develops, and produces oil and natural gas properties primarily located in Oklahoma and Texas, as well as in Arkansas, Colorado, Kansas, Louisiana, Mississippi, Montana, New Mexico, North...