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Summit Builders has a market debt-equity ratio of 0.85, a corporate tax rate of 35%, and...
Ivan Industries (II) has a debt-to-equity ratio of 1.4, a corporate tax rate of 30%, pays 4% interest on its debt and has a required rate of return on equity of 12%. What is II’s WACC? How much does the debt tax shield reduce II’s WACC? What is the required rate of return on firm assets?
A firm has an ROE of 5%, a debt/equity ratio of 0.5, a tax rate of 35%, and pays an interest rate of 7% on its debt. What is its operating ROA? (Do not round intermediate calculations. Round your answer to 2 decimal places.) % ROA
A firm has an ROE of 3.9%, a debt-to-equity ratio of 0.8, and a tax rate of 40% and pays an interest rate of 7% on its debt. What is its operating ROA? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
NatNah, a builder of acoustic accessories, has no debt and an equity cost of capital of 13%. Suppose NatNah decides to increase its leverage to maintain a market debt-to-value ratio of 0.5. Suppose its debt cost of capital is 8% and its corporate tax rate is 35%. If Natah's pre-tax WACC remains constant, what will be its (effective after-tax) WACC with the increase in leverage? The effective after-tax WACC will be %. (Round to two decimal places.)
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
Zorin Industries has a debt-equity ratio of 1.6. Its WACC is 14%, and its cost of debt is 6%. The corporate tax rate is 35% What is Zorin’s unlevered cost of equity capital? (Answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations.)
10. Pld Company has debt with a yield to maturity of 5.9%, a cost of equity of 12.6%, and a cost of preferred stock of 8.8%. The market values of its debt, preferred stock, and equity are $11.9 million, $2.6 million, and $15.3 million, respectively, and its tax rate is 35%. What is this firm's after-tax WACC? Note: Assume that the firm will always be able to utilize its full interest tax shield. Pid's WACC is %. (Round to two...
Suppose that JB Cos. has a capital structure of 80 percent equity, 20 percent debt, and that its before-tax cost of debt is 14 percemt while its cost of equity is 18 percent. Assume the appropriate weighted-average tax rate is 21 percent and JB estimates that they can make full use of the interest tax shield. What will be JB's WACC? (Round your answer to 2 decimal places.) WACC % Suppose that B2B, Inc. has a capital structure of 35...
sheila pays corporate taxes. the girm has a debt equity ratio of 1. the pre tax cost of debt if 1.5% while the unlevered cost of capital is 10%. what is the approximate cost of equity if the tax rate is 35%? A. 10% B. 8.2% C. 11.8% D. 19.9% E. 15.5%