Caddie Manufacturing has a target debt-equity ratio of .45. Its cost of equity is 11 percent,...
|
Caddie Manufacturing has a target debt-equity ratio of .45. Its cost of equity is 11 percent, and its pretax cost of debt is 6 percent. If the tax rate is 25 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.) |
Homework Answers
The target debt-equity ratio is 0.45.
Debt proportion is calculated below:
Thus, equity proportion will be:
The formula to calculate WACC is given below:
WACC is 8.98%.
Add Answer to:
Caddie Manufacturing has a target debt-equity ratio of .45. Its
cost of equity is 11 percent,...
Caddie Manufacturing has a target debt-equity ratio of .65. Its cost of equity is 13 percent,...
Caddie Manufacturing has a target debt-equity ratio of .65. Its cost of equity is 13 percent, and its pretax cost of debt is 6 percent. If the tax rate is 25 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.)
Caddie Manufacturing has a target debt-equity ratio of .90. Its cost of equity is 12 percent,...
Caddie Manufacturing has a target debt-equity ratio of .90. Its cost of equity is 12 percent, and its pretax cost of debt is 7 percent. If the tax rate is 25 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
Caddie Manufacturing has a target debt-equity ratio of 35. Its cost of equity is 12 percent,...
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
Using a financial calculator if possible. Caddie Manufacturing has a target debt-equity ratio of .55. Its cost of equit...
Using a financial calculator if possible.
Caddie Manufacturing has a target debt-equity ratio of .55. Its cost of equity is 10 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 %
Miller Manufacturing has a target debt-equity ratio of .45. Its cost of equity is 12.1 percent...
Miller Manufacturing has a target debt-equity ratio of .45. Its cost of equity is 12.1 percent and its cost of debt is 6.8 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.)
Kose, Inc., has a target debt-equity ratio of .45. Its WACC is 8.8 percent, and the...
Kose, Inc., has a target debt-equity ratio of .45. Its WACC is 8.8 percent, and the tax rate is 24 percent. a. If the company’s cost of equity is 11 percent, what is its pretax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If instead you know that the aftertax cost of debt is 6.2 percent, what is the cost of equity? (Do not round...
Miller Manufacturing has a target debt-equity ratio of .30. Its cost of equity is 12.5 percent...
Miller Manufacturing has a target debt-equity ratio of .30. Its cost of equity is 12.5 percent and its cost of debt is 7.2 percent. If the tax rate is 25 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.)
Tulloch Manufacturing has a target debt-equity ratio of 63. Its cost of equity is 13.7 percent,...
Tulloch Manufacturing has a target debt-equity ratio of 63. Its cost of equity is 13.7 percent, and its pretax cost of debt is 8.7 percent If the tax rate is 30 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 .95. Its cost of equity is 11 percent,...
Lannister Manufacturing has a target debt-equity ratio of .95. Its cost of equity is 11 percent, and its cost of debt is 7 percent. If the tax rate is 24 percent, what is the 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 .55. Its cost of equity is 15 percent, and its cost of debt i...
Lannister Manufacturing has a target debt−equity ratio of .55. Its cost of equity is 15 percent, and its cost of debt is 7 percent. If the tax rate is 35 percent, what is the company’s WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) WACC
Caddie Manufacturing has a target debt-equity ratio of .90. Its cost of equity is 12 percent, and its pretax cost of debt is 7 percent. If the tax rate is 25 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
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
Using a financial calculator if possible.
Caddie Manufacturing has a target debt-equity ratio of .55. Its cost of equity is 10 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 %
Tulloch Manufacturing has a target debt-equity ratio of 63. Its cost of equity is 13.7 percent, and its pretax cost of debt is 8.7 percent If the tax rate is 30 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 .95. Its cost of equity is 11 percent, and its cost of debt is 7 percent. If the tax rate is 24 percent, what is the s WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) WACC
Most questions answered within 3 hours.
-
Suppose car models A, B, and C are popular among drivers.
Suppose 12% of the drivers...
asked 21 seconds ago -
write a program that finds the number of zeros in an 8-bit data
item using assembly...
asked 57 seconds ago -
Which statement is always true: The total energy of a closed
system...
A) is always equally...
asked 14 minutes ago -
find the critical value associated with a right sided hypothesis of
the mean using a sample...
asked 2 hours ago -
Which of the following statements is true with respect to a
simple linear regression model?
a....
asked 2 hours ago -
The energy required to remove an electron from a surface of a
solid element is called...
asked 4 hours ago -
How would you train your employees to avoid risks of using
mobile devices?
asked 4 hours ago -
Assume Kw = 1.01 ✕ 10−14
For pure water, we can calculate [H3O+ ] = [OH...
asked 5 hours ago -
Suppose that on a temperature scale X, water boils at 203.0°X
and freezes at -105.7°X. What...
asked 6 hours ago -
BaS crystallizes in a cubic unit cell with S2- ions on each
corner and each face....
asked 7 hours ago -
A. 0≤P(Oi)≤10≤P(Oi)≤1 for each i
B. P(Oi)≤0P(Oi)≤0
C. P(Oi)=1+P(OCi)P(Oi)=1+P(OiC)
D. P(Oi)≥1P(Oi)≥1
If an experiment consists of...
asked 8 hours ago -
A battery has an emf of 9.20V and an internal resistance of 1.20
ohm. a)What resistance...
asked 8 hours ago