WACC = Cost of Debt*Weight of Debt + Cost of Equity*Weight of Equity
Market value of debt = $1,128
Market value of Equity = 576*4 = $2,304
Hence, WACC using market value weights
= 12%(1-40%)*1,128/3,432 + 17%*2,304/3,432
= 13.78%
Excel Online Structured Activity: WACC The Paulson Company's year-end balance sheet is shown below. Its cost...
Video Excel Online Structured Activity: WACC The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 15%, its before-tax cost of debt is 10%, and its marginal tax rate is 40%. Assume that the firm's long-term debt sells at par value. The firm's total debt, which is the sum of the company's short-term debt and long-term debt, equals $1,191. The firm has 576 shares of common stock outstanding that sell for $4.00 per share. The...
The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 15%, its before-tax cost of debt is 12%, and its marginal tax rate is 40%. Assume that the firm's long-term debt sells at par value. The firm’s total debt, which is the sum of the company’s short-term debt and long-term debt, equals $1,128. The firm has 576 shares of common stock outstanding that sell for $4.00 per share. The data has been collected in the...
Excel Online Structured Activity: WACC The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 18%, its before-tax cost of debt is 9%, and its marginal tax rate is 40% Assume that the firm's long-term debt sells at par value. The firm's total debt, which is the sum of the company's short-term debt and long-term debt, equals $1,173 The firm has 576 shares of common stock outstanding that sell for $4.00 per share. The data...
Excel Online Structured Activity: WACC The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 17%, its before-tax cost of debt is 11%, and its marginal tax rate is 40%. Assume that the firm's long-term debt sells at par value. The firm's total debt, which is the sum of the company's short-term debt and long-term debt, equals $1,105. The firm has 576 shares of common stock outstanding that sell for $4.00 per share. The data...
SAGE MINDTAP ne Activity: WAC Video Excel Online Structured Activity: WACC The Paulson Company's year and balance sheet is shown below. Its cost of common equity is 14, before tax cost of debt is 12.and its marginal tax rate is 40%. Assume that the firm's long-term debt sells at par value. The firm total debt which is the sum of the company's short-term debt and long-term debt, equals 51,190. The firm has 576 shares of common stock outstanding that sell...
The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 14%, its before-tax cost of debt is 11%, and its marginal tax rate is 40%. Assume that the firm's long-term debt sells at par value. The firm’s total debt, which is the sum of the company’s short-term debt and long-term debt, equals $1,120. The firm has 576 shares of common stock outstanding that sell for $4.00 per share. The data has been collected in the...
# Video Excel Online Structured Activity: WACC The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 14%, its before-tax cost of debt is 8%, and its marginal tax rate is 40%. Assume that the firm's long-term debt sells at par value. The firm's total debt, which is the sum of the company's short-term debt and long-term debt. equals $1,199. The firm has 576 shares of common stock outstanding that sell for $4.00 per share....
(the answer is a percentage) The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 17%, its before-tax cost of debt is 11%, and its marginal tax rate is 40%. Assume that the firm's long-term debt sells at par value. The firm's total debt, which is the sum of the company's short-term debt and long-term debt, equals $1,132. The firm has 576 shares of common stock outstanding that sell for $4.00 per share. The data...
The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 18%, its before-tax cost of debt is 10%, and its marginal tax rate is 40%. Assume that the firm's long term debt sells at par value. The firm's total debt, which is the sum of the company's short-term debt and long-term debt, equals $1,137. The firm has 576 shares of common stock outstanding that sell for $4.00 per share. The data has been collected in...
( The answer is a percentage) The Paulson Company's year-end balance sheet is shown below. Its cost of common equity is 17%, its before-tax cost of debt is 11%, and its marginal tax rate is 40%. Assume that the firm's long-term debt sells at par value. The firm's total debt, which is the sum of the company's short-term debt and long-term debt, equals $1,132. The firm has 576 shares of common stock outstanding that sell for $4.00 per share. The...