Calculating Weighted-Average Cost of Capital (WACC)
Consider the following information for Federated Junkyards of America.
Debt: $75,000,000 book value outstanding. The debt is trading at 90% of book value. The yield to maturity is 9%.
Equity: 2,500,000 shares selling at $42 per share. Assume the expected rate of return on Federated’s stock is 18%.
Taxes: Federated’s marginal tax rate is Tc = 0.21.
Calculate the weighted-average cost of capital (WACC). (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
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Consider the following information for Federated Junkyards of America. Debt: $77,000,000 book value outstanding. The debt...
Consider the following information for Federated Junkyards of America. Debt: $77,000,000 book value outstanding. The debt is trading at 92% of book value. The yield to maturity is 11%. Equity: 2,700,000 shares selling at $44 per share. Assume the expected rate of return on Federated’s stock is 20%. Taxes: Federated’s marginal tax rate is Tc = 0.21. Calculate the weighted-average cost of capital (WACC). (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Check my work Consider the following information for Federated Junkyards of America. 10 points • Debt:...
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I only need help with the answer to Weighted Average Cost of Capital (WACC) using the...
I only need help with the answer to Weighted Average Cost of
Capital (WACC) using the information provided from the previous
questions, thanks.
GHI Company's current share price is $15.6 and it is expected to pay a $1.2 dividend per share next year. After that, the firm's dividends are expected to grow at a rate of 4% per year. What is an estimate of GHI Company's cost of equity? Enter your answer as a percentage and rounded to 2 DECIMAL...
Check my work Consider the following information for Federated Junkyards of America. 10 points • Debt: $79,000,000 book value outstanding. The debt is trading at 94% of book value. The yield to maturity is 7%. • Equity: 2,900,000 shares selling at $46 per share. Assume the expected rate of return on Federated's stock is 16%. • Taxes: Federated's marginal tax rate is Tc = 0.21. eBook Print Calculate the weighted average cost of capital (WACC). (Do not round intermediate calculations....
[5] Weighted Average Cost of Capital (WACC) (25 points) Apple Inc. has 5,366,166,000 shares traded at a market value of $126 per share, its debt outstanding has an estimated market value of $90,883,140,000. The stock has a beta of 1.193. The expected retum on stocks is 8.78%. The firm is rated AAA and paid 30% of its income as taxes. The risk-free rate is 2.47%, and the yield-to-maturity of Apple's bonds is 3 2796. A. What is Apple's debt ratio?...
I only need help with the answer to Weighted Average Cost of
Capital (WACC) using the information provided from the previous
questions, thanks.
GHI Company's current share price is $15.6 and it is expected to pay a $1.2 dividend per share next year. After that, the firm's dividends are expected to grow at a rate of 4% per year. What is an estimate of GHI Company's cost of equity? Enter your answer as a percentage and rounded to 2 DECIMAL...
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