assume a for-profi company has $ 8 million of long term debt with an interest rate...
Homework Answers
Total value=(8+3+4)=15 million
WACC=Respective costs*Respective weight
=(8/15*6)+(3/15*8)+(4/15*10)
=7.47%(Approx).
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assume a for-profi company has $ 8 million of long term debt with
an interest rate...
Brother’s and Sister’s Inc. has a capitalization structure of $5 million in long-term debt at a...
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N 301 0133020312.pdf X FIN 432 - Invest A long-term Pro X Finance Chapter X G...
N 301 0133020312.pdf X FIN 432 - Invest A long-term Pro X Finance Chapter X G Cash paymentse X webapps/assessment/take/launch.jsp?course_assessment_id=_17709_18.course_id=25356 18 content id=431107_1&step=null + 6 QUESTION 42 2.22 points Save Answer Following is the formula for the weighted average cost of capital WACC = T LTD (1-tax rate) W LTD + TPS WPS + r CS WCS Where: LTD is long term debt PS is preferred stock CS is common stock In the formula for the weighted average cost of...
After careful analysis, Dexter Brothers has determined that its optimal capital structure is composed of the...
After careful analysis, Dexter Brothers has determined that its
optimal capital structure is composed of the sources and target
market value weights shown in the following table:
The cost of debt is estimated to be 4.1% the cost of preferred
stock is estimated to be 9.5%;the cost of retained earnings is
estimated to be13%; and the cost of new common stock is estimated
to be 15% All of these are after-tax rates. The company's debt
represents 22%,
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The is the interest rate that a firm pays on any new debt financing. Wat after-tax cost of debt VPC) can borrow funds at an interest rate of 10.20% for a period of five years. Its marginal federal-plus-state tax rate is 25% before-tax cost of debt Pebt is __ (rounded to two decimal places). At the present time, Water and Power Company (WPC) has 15-year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a...
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N 301 0133020312.pdf X FIN 432 - Invest A long-term Pro X Finance Chapter X G Cash paymentse X webapps/assessment/take/launch.jsp?course_assessment_id=_17709_18.course_id=25356 18 content id=431107_1&step=null + 6 QUESTION 42 2.22 points Save Answer Following is the formula for the weighted average cost of capital WACC = T LTD (1-tax rate) W LTD + TPS WPS + r CS WCS Where: LTD is long term debt PS is preferred stock CS is common stock In the formula for the weighted average cost of...
After careful analysis, Dexter Brothers has determined that its
optimal capital structure is composed of the sources and target
market value weights shown in the following table:
The cost of debt is estimated to be 4.1% the cost of preferred
stock is estimated to be 9.5%;the cost of retained earnings is
estimated to be13%; and the cost of new common stock is estimated
to be 15% All of these are after-tax rates. The company's debt
represents 22%,
the preferred stock...
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