WACC = 55% * 11% * (1 - 38%) + 10% * 8% + 35% * 19%
WACC = 3.751% + 0.80% + 6.65%
WACC = 11.20%
its question 8. step by step solutions please. no excel solutions please cost of new preferred...
Delta corporation has common stock of $50 million, preferred stock of $20 million, and total liabilities of $30 million. its cost of equity is 12 percent, the cost of preferred stock is 9percent, and the before-tax cost of debt is 16 percent. the tax rate is 40 percent. what is deltas WACC? step by step solutions. no excel please
step by step solutions please. no excel solutions
10. Bluefield Corporation has 6 million shares of common stock outstanding, 750,000 shares of 8 percent preferred stock with $100 par value outstanding, and 300,000 issues of 10 percent annual bonds outstanding with par value of $1,000 each. The common stock currently sells for $43 per share and just paid a dividend of $2.00 per share, which is expected to grow at 6% throughout time. The preferred stock currently sells for $75...
Mullineaux Corporation has a target capital structure of 55 percent common stock, 10 percent preferred stock, and 35 percent debt. Its cost of equity is 10 percent, the cost of preferred stock is 5 percent, and the pretax cost of debt is 7 percent. The relevant tax rate is 35 percent. a. 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 % b. What is...
Hello, can I get a step by step solution using excel. Thank you
Mullineaux Corporation has a target capital structure of 60 percent common stock and 40 percent debt. Its cost of equity is 12.2 percent, and the cost of debt is 6.9 percent. The relevant tax rate is 22 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 %
Targaryen Corporation has a target capital structure of 70 percent common stock, 5 percent preferred stock, and 25 percent debt. Its cost of equity is 11 percent, the cost of preferred stock is 5 percent, and the pretax cost of debt is 6 percent. The relevant tax rate is 23 percent. a. 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.) b. What is the...
My question is Q 9, calculating WACC , thank you!
7. Calculating Cost 8. Calculation USE OF debt? U atins Cost of Debt UI debt? If the tax rate Jiminy's Cricket Farm issued a 30-year, 7 percent miannual bond 3 years ago. The bond currently sells for 93 percent of its face value. The company's tax rate is 35 percent. a. What is the pretax cost of debt? b. What is the aftertas cost of debt? Which is more relevant,...
Mullineaux Corporation has a target capital structure of 60 percent common stock, 5 percent preferred stock, and 35 percent debt. Its cost of equity is 14 percent, the cost of preferred stock is 6 percent, and the cost of debt is 8 percent. The relevant tax rate is 35 percent. (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16)) (a) Mullineaux's WACC is ______ percent. (b) Which of the following statement is true?...
Targaryen Corporation has a target capital structure of 60 percent common stock, 5 percent preferred stock, and 35 percent debt. Its cost of equity is 9 percent, the cost of preferred stock is 7 percent, and the pretax cost of debt is 8 percent. The relevant tax rate is 21 percent. a. 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.) b. What is the...
step by step solutions please. no excel solutions.
debt? 7. Colossus Bank has an issue of preferred stock with a $7 stated dividend that just sold for $80 per share. What is the bank's cost of preferred stock? If the company issued new preferred stock, it would incur a 7% flotation cost. What would be company's cost of new preferred stock?
9. Delta Corporation has common stock of $50 million, preferred stock of $20 million, and total liabilities of $30 million. Its cost of equity is 12 percent, the cost of preferred stock is 9 percent, and the before-tax cost of debt is 16 percent. The tax rate is 40 percent. What is Delta's WACC?