US Steel has $3.16 billion in total debt (which approximates its market value). Interest expense for...
US Steel has $3.16 billion in total debt (which approximates its market value). Interest expense for the year was about $214.0 million. The company’s market capitalization is approximately $1.17 billion, its market beta is 2.65, and its assumed tax rate is 37%. Assume that the risk-free rate equals 2.5% and the market premium equals 5%. US Steel’s cost of equity capital
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A) 15.75% |
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B) 9.13% |
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C) 13.25% |
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D) 14.13% |
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US Steel has $3.16 billion in total debt (which approximates its
market value). Interest expense for...
In August 2015, Cisco system had a market capitalization of $140 billion. It had debt of...
In August 2015, Cisco system had a market capitalization of $140 billion. It had debt of $25.4 billion as well as cash and short-term investments of $60.4 billion. Its equity beta was 1.09 and its debt beta was approximately zero. What was Cisco’s enterprise value at the time? Given a risk−free rate of 2% and a market risk premium of 5%, estimate the unlevered cost of capital of Cisco’s business.
CASE 1-5 Financial Statement Ratio Computation Refer to Campbell Soup Company's financial Campbell Soup statements in...
CASE 1-5 Financial Statement Ratio Computation Refer to Campbell Soup Company's financial Campbell Soup statements in Appendix A. Required: Compute the following ratios for Year 11. Liquidity ratios: Asset utilization ratios:* a. Current ratio n. Cash turnover b. Acid-test ratio 0. Accounts receivable turnover c. Days to sell inventory p. Inventory turnover d. Collection period 4. Working capital turnover Capital structure and solvency ratios: 1. Fixed assets turnover e. Total debt to total equity s. Total assets turnover f. Long-term...
CASE 1-5 Financial Statement Ratio Computation Refer to Campbell Soup Company's financial Campbell Soup statements in Appendix A. Required: Compute the following ratios for Year 11. Liquidity ratios: Asset utilization ratios:* a. Current ratio n. Cash turnover b. Acid-test ratio 0. Accounts receivable turnover c. Days to sell inventory p. Inventory turnover d. Collection period 4. Working capital turnover Capital structure and solvency ratios: 1. Fixed assets turnover e. Total debt to total equity s. Total assets turnover f. Long-term...
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