Cinco De Mayo has a target debt-equity ratio of 0.63. (Hint: if you're not sure what...
Cinco De Mayo has a target debt-equity ratio of 0.63. (Hint: if you're not sure what to do about "debt-equity ratio", watch my YouTube video on that topic!) The yield to maturity on its bonds is 11 percent. Its cost of equity is 19 percent. The corporate income tax rate is 35 percent. Calculate the WACC for this company.
Homework Answers
Cost of Debt =11%
Cost of Equity =19%
WACC =Weight of Equity*Cost of Equity *Weight of Debt*Cost of
Debt*(1-Tax Rate)
=1/(1+0.63)*19%+0.63/(1+0.63)*11%*(1-35%) =14.42%
Add Answer to:
Cinco De Mayo has a target debt-equity ratio of 0.63. (Hint: if
you're not sure what...
Cinco De Mayo has a target debt-equity ratio of 0.56. (Hint: If you're not sure what...
Cinco De Mayo has a target debt-equity ratio of 0.56. (Hint: If you're not sure what to do about "debt-equity ratio", watch my YouTube video on that topic!) The yield to maturity on its bonds is 11 percent. Its cost of equity is 19 percent. The corporate income tax rate is 32 percent. Calculate the WACC for this company. Multiple Choice Ο 14.12% Ο 12.55% Ο 15.61% Ο Ο
Cinco De Mayo has a target debt-equity ratio of 0.62. (Hint: if you're not sure what...
Cinco De Mayo has a target debt-equity ratio of 0.62. (Hint: if you're not sure what to do about "debt-equity ratio", watch my YouTube video on that topic!) The yield to maturity on its bonds is 10 percent. Its cost of equity is 19 percent. The corporate income tax rate is 31 percent. Calculate the WACC for this company. points Multiple Choice O 11.53% 11.53% 0 13.65% 3.65% 0 11.5% We were unable to transcribe this image
Cinco De Mayo has a target debt-equity ratio of 0.56. (Hint: if you're not sure what...
Cinco De Mayo has a target debt-equity ratio of 0.56. (Hint: if you're not sure what to do about "debt-equity ratio", watch my YouTube video on that topic!) The yield to maturity on its bonds is 11 percent. Its cost of equity is 20 percent. The corporate income tax rate is 32 percent. Calculate the WACC for this company. Multiple Choice 11.97% 12.99% 15.51% 16.28% 14.73%
Cinco De Mayo has a target debt-equity ratio of 0.69. (Hint: if you're not sure what...
Cinco De Mayo has a target debt-equity ratio of 0.69. (Hint: if you're not sure what to do about "debt-equity ratio", watch my YouTube video on that topic!) The yield to maturity on its bonds is 11 percent. Its cost of equity is 17 percent. The corporate income tax rate is 34 percent. Calculate the WACC for this company. rev: 09_20_2012 Multiple Choice 11.24% 10.28% 12.37% 13.02% 13.67% This is the last question in the assignment. To submit, use Alt...
Cinco De Mayo has a target debt-equity ratio of 0.58. (Hint: The yield to maturity on...
Cinco De Mayo has a target debt-equity ratio of 0.58. (Hint: The yield to maturity on its bonds is 11 percent. Its cost of equity is 16 percent. The corporate income tax rate is 32 percent. Calculate the WACC for this company. Multiple Choice 0 1287% 12.87% 0 13.52% 3.52% 0 11.06% 0 10.61% 0 12.23%
Caddie Manufacturing has a target debt-equity ratio of 35. Its cost of equity is 12 percent,...
Caddie Manufacturing has a target debt-equity ratio of 35. Its cost of equity is 12 percent, and its pretax cost of debt is 6 percent. If the tax rate is 21 percent, what is the company's WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) % WACC
Lannister Manufacturing has a target debt-equity ratio of .35. Its cost of equity is 12 percent,...
Lannister Manufacturing has a target debt-equity ratio of .35. Its cost of equity is 12 percent, and its cost of debt is 6 percent. If the tax rate is 21 percent, what is the company's WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) WACC
Lannister Manufacturing has a target debt−equity ratio of .55. Its cost of equity is 15 percent, and its cost of debt i...
Lannister Manufacturing has a target debt−equity ratio of .55. Its cost of equity is 15 percent, and its cost of debt is 7 percent. If the tax rate is 35 percent, what is the company’s WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) WACC
Sixx AM Manufacturing has a target debt-equity ratio of 0.67. Its cost of equity is 19...
Sixx AM Manufacturing has a target debt-equity ratio of 0.67. Its cost of equity is 19 percent, and its cost of debt is 11 percent. If the tax rate Is 31 percent, what is the company's WACC? О 15.14% О 11.36% 12.17% o 13.7% О 14.42%
Sixx AM Manufacturing has a target debt—equity ratio of 0.55. Its cost of equity is 19...
Sixx AM Manufacturing has a target debt—equity ratio of 0.55. Its cost of equity is 19 percent, and its cost of debt is 8 percent. If the tax rate is 38 percent, what is the company's WACC? Enter your answer as a percent rounded to 2 decimal places, e.g., enter 32.16% as 32.16, not 0.3216. ______%
Cinco De Mayo has a target debt-equity ratio of 0.56. (Hint: If you're not sure what to do about "debt-equity ratio", watch my YouTube video on that topic!) The yield to maturity on its bonds is 11 percent. Its cost of equity is 19 percent. The corporate income tax rate is 32 percent. Calculate the WACC for this company. Multiple Choice Ο 14.12% Ο 12.55% Ο 15.61% Ο Ο
Cinco De Mayo has a target debt-equity ratio of 0.62. (Hint: if you're not sure what to do about "debt-equity ratio", watch my YouTube video on that topic!) The yield to maturity on its bonds is 10 percent. Its cost of equity is 19 percent. The corporate income tax rate is 31 percent. Calculate the WACC for this company. points Multiple Choice O 11.53% 11.53% 0 13.65% 3.65% 0 11.5% We were unable to transcribe this image
Cinco De Mayo has a target debt-equity ratio of 0.58. (Hint: The yield to maturity on its bonds is 11 percent. Its cost of equity is 16 percent. The corporate income tax rate is 32 percent. Calculate the WACC for this company. Multiple Choice 0 1287% 12.87% 0 13.52% 3.52% 0 11.06% 0 10.61% 0 12.23%
Caddie Manufacturing has a target debt-equity ratio of 35. Its cost of equity is 12 percent, and its pretax cost of debt is 6 percent. If the tax rate is 21 percent, what is the company's WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) % WACC
Lannister Manufacturing has a target debt-equity ratio of .35. Its cost of equity is 12 percent, and its cost of debt is 6 percent. If the tax rate is 21 percent, what is the company's WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) WACC
Sixx AM Manufacturing has a target debt-equity ratio of 0.67. Its cost of equity is 19 percent, and its cost of debt is 11 percent. If the tax rate Is 31 percent, what is the company's WACC? О 15.14% О 11.36% 12.17% o 13.7% О 14.42%
Most questions answered within 3 hours.
-
Which statement is always true: The total energy of a closed
system...
A) is always equally...
asked 9 minutes ago -
find the critical value associated with a right sided hypothesis of
the mean using a sample...
asked 2 hours ago -
Which of the following statements is true with respect to a
simple linear regression model?
a....
asked 2 hours ago -
The energy required to remove an electron from a surface of a
solid element is called...
asked 4 hours ago -
How would you train your employees to avoid risks of using
mobile devices?
asked 4 hours ago -
Assume Kw = 1.01 ✕ 10−14
For pure water, we can calculate [H3O+ ] = [OH...
asked 5 hours ago -
Suppose that on a temperature scale X, water boils at 203.0°X
and freezes at -105.7°X. What...
asked 6 hours ago -
BaS crystallizes in a cubic unit cell with S2- ions on each
corner and each face....
asked 6 hours ago -
A. 0≤P(Oi)≤10≤P(Oi)≤1 for each i
B. P(Oi)≤0P(Oi)≤0
C. P(Oi)=1+P(OCi)P(Oi)=1+P(OiC)
D. P(Oi)≥1P(Oi)≥1
If an experiment consists of...
asked 8 hours ago -
A battery has an emf of 9.20V and an internal resistance of 1.20
ohm. a)What resistance...
asked 8 hours ago -
The area of an elastic circular loop decreases at a constant
rate, dA/dt = −6.60×10−3 m2/s...
asked 9 hours ago -
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 11 hours ago