Using market value and book value (separately), find the adjusted WACC, using 30% tax rate. Component...
Using market value and book value (separately), find the adjusted WACC, using 30% tax rate.
| Component | Balance Sheet Value | Market Value | Cost of Capital |
| Debt | 5,000,000.00 | 6,850,000.00 | 8% |
| Preferred Stock | 4,000,000.00 | 2,200,00.00 | 10% |
| Common Stock | 2,000,000.00 | 5,600,000.00 | 13% |
Homework Answers
| Component | Cost of capital | Book Value | Weights | WACC (Weights*Cost%) |
| Debt | 8%-8%*30%=5.6% | 5000000 | 0.45 | 2.52% |
| Prefereed stock | 10% | 4000000 | 0.36 | 3.60% |
| Common stock | 13% | 2000000 | 0.18 | 2.34% |
| Total | 11000000 | 8.46% | ||
| Component | Cost of capital | Market Value | Weights | WACC (Weights*Cost%) |
| Debt | 8%-8%*30%=5.6% | 6850000 | 0.54 | 3.02% |
| Prefereed stock | 10% | 220000 | 0.017 | 0.17% |
| Common stock | 13% | 5600000 | 0.44 | 5.72% |
| Total | 12670000 | 8.91% |
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Using market value and book value (separately), find the
adjusted WACC, using 30% tax rate.
Component...
Using market value and book value (separately), find the adjusted WACC, using 30% tax rate. Compo...
Using market value and book value (separately), find the adjusted WACC, using 30% tax rate. Component Balance Sheet Value Market Value Cost of Capital TAX Debt 5,000,000.00 6,850,000.00 8% 30% Preferred Stock 4,000,000.00 2,200,000.00 10% Common Stock 2,000,000.00 5,600,000.00 13% ANSWER Book Value Weights Market Value Weights Adjusted WACC Debt Debt Market Value Preferred Stock Preferred Stock Book Value Common Stock Common Stock
Using market value and book value (separately), find the adjusted WACC, using 30% tax rate. Please...
Using market value and book value (separately), find the
adjusted WACC, using 30% tax rate.
Please include formulas in the answer. I need to understand how
to calculate the book and market values of debt and stock as shown
in the grey boxes.
Thank You!
Using market value and book value (separately), find the adjusted WACC, using 30% tax rate Component Debt Preferred Stock Common Stock Balance Sheet Value 5,000,000.00 4.000,000.00 2.000,000.00 Market Value Cost of Capital 890 10% 13%...
What is the book value adjusted WACC for Clark Explorers at a tax rate of 35%?...
What is the book value adjusted WACC for Clark Explorers at a
tax rate of 35%?
b. What is the market value adjusted WACC for
Clark Explorers at a tax rate of 30%?
What is the book value adjusted WACC for Clark Explorers at a
tax rate of 30%?
c. What is the market value adjusted WACC for
Clark Explorers at a tax rate of 15%?
What is the book value adjusted WACC for Clark Explorers at a
tax rate...
1) What is the market value adjusted WACC for Clark Explorers at a tax rate of...
1) What is the market value adjusted WACC for Clark Explorers at
a tax rate of 40%
2) What is the book value adjusted WACC for Clark Explorers at a
tax rate of 40%?
3) What is the market value adjusted WACC for Clark Explorers at
a tax rate of 25%
4) What is the book value adjusted WACC for Clark Explorers at a
tax rate of 25%?
5) What is the market value adjusted WACC for Clark Explorers at...
Adjusted WACC. Clark Explorers Inc., an engineering firm, has the following capital structure: Equity Preferred Stock...
Adjusted WACC. Clark Explorers Inc., an
engineering firm, has the following capital structure:
Equity
Preferred Stock
Debt
Market Price
$49.41
$79.61
$970.65
Outstanding units
119,000
14,000
6,224
Book Value
$3,130,000
$1,025,000
$6,224,000
Cost of Capital
16.61%
11.73%
8.8%
Using market value and book value (separately, of course), find
the adjusted WACC for clark explorers at the following tax
rates:
What is the market value adjusted WACC for Clark explorers at a
tax rate of 40%
What is the market value...
Adjusted WACC Clark Explorers, Inc., an engineering firm, has the following capital structure: the adjusted WACC...
Adjusted WACC Clark Explorers, Inc., an engineering firm, has the following capital structure: the adjusted WACC for Clark Explorers at the following tax rates: Using market value and book value (separately, of course), find a 40% b. 30% c. 15% d. 5% a. What is the market value adjusted WACC for Clark Explorers at a tax rate of 40%? % (Round to two decimal places.) © Data Table Click on the Icon in order to copy its content into a...
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answer question X P11-14 (similar to) Question Help Adjusted WACC. Clark Explorers, Inc., an engineering firm,...
answer question
X P11-14 (similar to) Question Help Adjusted WACC. Clark Explorers, Inc., an engineering firm, has the following capital structure: Using market value and book value (separately, of course), find the adjusted WACC for Clark Explorers at the following tax rates: a. 35% b. 30% c. 20% d. 5% * Data Table Click on the loon in order to copy its content into a spreadsheet. Equity Preferred Stock Market Price $48.56 $224 24 Outstanding units 127,000 5,000 Book value...
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: . If the after-tax cost of Book value versus market value components. Compare Trout, Inc. with Salmon Enterprises, using the balance sheet of Trout and the market data of Salmon for the weights in the weighted average cost of capital: debt is 7.6% for both companies and the cost of equity is 14.06%, which company has the higher WACC? What is the book value adjusted WACC for Trout, Inc.? % (Round to two decimal places.) Data Table - X...
Using market value and book value (separately), find the
adjusted WACC, using 30% tax rate.
Please include formulas in the answer. I need to understand how
to calculate the book and market values of debt and stock as shown
in the grey boxes.
Thank You!
Using market value and book value (separately), find the adjusted WACC, using 30% tax rate Component Debt Preferred Stock Common Stock Balance Sheet Value 5,000,000.00 4.000,000.00 2.000,000.00 Market Value Cost of Capital 890 10% 13%...
What is the book value adjusted WACC for Clark Explorers at a
tax rate of 35%?
b. What is the market value adjusted WACC for
Clark Explorers at a tax rate of 30%?
What is the book value adjusted WACC for Clark Explorers at a
tax rate of 30%?
c. What is the market value adjusted WACC for
Clark Explorers at a tax rate of 15%?
What is the book value adjusted WACC for Clark Explorers at a
tax rate...
1) What is the market value adjusted WACC for Clark Explorers at
a tax rate of 40%
2) What is the book value adjusted WACC for Clark Explorers at a
tax rate of 40%?
3) What is the market value adjusted WACC for Clark Explorers at
a tax rate of 25%
4) What is the book value adjusted WACC for Clark Explorers at a
tax rate of 25%?
5) What is the market value adjusted WACC for Clark Explorers at...
Adjusted WACC. Clark Explorers Inc., an
engineering firm, has the following capital structure:
Equity
Preferred Stock
Debt
Market Price
$49.41
$79.61
$970.65
Outstanding units
119,000
14,000
6,224
Book Value
$3,130,000
$1,025,000
$6,224,000
Cost of Capital
16.61%
11.73%
8.8%
Using market value and book value (separately, of course), find
the adjusted WACC for clark explorers at the following tax
rates:
What is the market value adjusted WACC for Clark explorers at a
tax rate of 40%
What is the market value...
Adjusted WACC Clark Explorers, Inc., an engineering firm, has the following capital structure: the adjusted WACC for Clark Explorers at the following tax rates: Using market value and book value (separately, of course), find a 40% b. 30% c. 15% d. 5% a. What is the market value adjusted WACC for Clark Explorers at a tax rate of 40%? % (Round to two decimal places.) © Data Table Click on the Icon in order to copy its content into a...
The Aztec Corporation has the following market capital components and costs. Calculate Aztec's WACC. Component Value Cost Debt $ 23,625 12.0% 13.5% Preferred Stock Common Equity $ 4,350 $ 52,275 19.2% Aztec has a 35% marginal tax rate.
answer question
X P11-14 (similar to) Question Help Adjusted WACC. Clark Explorers, Inc., an engineering firm, has the following capital structure: Using market value and book value (separately, of course), find the adjusted WACC for Clark Explorers at the following tax rates: a. 35% b. 30% c. 20% d. 5% * Data Table Click on the loon in order to copy its content into a spreadsheet. Equity Preferred Stock Market Price $48.56 $224 24 Outstanding units 127,000 5,000 Book value...
: . If the after-tax cost of Book value versus market value components. Compare Trout, Inc. with Salmon Enterprises, using the balance sheet of Trout and the market data of Salmon for the weights in the weighted average cost of capital: debt is 7.6% for both companies and the cost of equity is 14.06%, which company has the higher WACC? What is the book value adjusted WACC for Trout, Inc.? % (Round to two decimal places.) Data Table - X...
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