Consider a company subject to a corporate tax rate of 0.3. If the company has a debt ratio of 0.3, and an unleveraged beta of 0.9, what is the company's leveraged beta?
Consider a company subject to a corporate tax rate of 0.3. If the company has a...
Question 11 (1 point) Consider a company subject to a corporate tax rate of 0.2. If the company has a debt ratio of 0.3, and an unleveraged beta of 0.8, what is the company's leveraged beta?
please explain how this answer was caculated using a caculator 4. CF Company has a capital structure of debt of $300,000 and equity of $700,000. The company's unleveraged beta (Bu) is 1.0, and its tax rate is 40%. What would be CF Company's leveraged beta (B.)? Bl=Bu[1 + (1 - 1)(D/E)] = 1.0[1 + 0.6(300,000/700,000)] = 1.26
Question 17 (1 point) A company has an un-leveraged value of 5,000,000 and debt 200,000. If the company is subject to a corporate tax rate of 0.15, and investors in the company are subject to a tax rate of 0.20 on equity income and 0.35 on debt income, what is the company's value? Your Answer: Answer
Consider a company financed with 0.9 equity, 0.1 preferred stock, and the remaining debt subject to a corporate tax rate 0.5 If the required rate of return on the debt is 0.03, on the preferred stock is 0.10 and on the common stock is 0.09, what is the working average cost of capital for this company?
Question 17 (1 point) A company has an un-leveraged value of 2.000.000 and debt 100.000. If the company is subject to a corporate tax rate of 0.10, and investors in the company are! subject to a tax rate of 0.10 on equity income and 0.40 on debt income, what is the company's value? Your Answer: Answer Question 18 (1 point) v Saved Which of the following statements is free
Question 10 (1 point) Heinlein Corporation is financed with 0.5 percent debt and the rest equity. It has a leveraged beta of 1.1 and is subject to a 0.1 corporate tax rate. What is Heinlein's unleveraged beta? Your Answer: Question 10 options: Answer Question 11 (1 point) Empress Corporation has a capital budget of 140 and and a Net Income of 360. If Empress's target equity fraction is 0.4, what should Empress's dividend be under the residual dividend model?
please explain how the current unleveraged beta was caculated below. The example when typed in caculator isnt giving me the same answer. 6. AB Company has a debt-equity ratio (D/E) of 0.6, and its current leveraged beta (BL) is 1. If the company changes its debt-equity ratio to 0.4, what would be AB Company's new le )? The company's current unleveraged beta (Bu) is calculated as follows: Bu = Bu[1 + (1 - T)(D/E)] => 1.5 = By [1 +...
A company has $13,500,000 in taxable income. Consider the following corporate marginal tax rates: 1. What is the marginal tax rate for the company? 2. What is the total tax bill for the company, i.e., how much does the company have to pay in taxes (in $)? 3. What is the company's average tax rate? Intro A company has $13,500,000 in taxable income. Consider the following corporate marginal tax rates: Tax rate 15% 25% 34% Taxable income ($) 0 50,000...
In your country the corporate tax rate is 20%. Company C has a perpetual, after tax, unlevered cash flow equal to 29,000,000, a return on unlevered equity equal to 9,6% and debt for 120,000,000. The interest rate on the company’s debt is 4,5%. The debt is constant and perpetual. The tax rate is unexpectedly raised to 36%. Assuming that the change in tax rate does not affect the expected returns required by investors, what is the return experienced by shareholders,...
A company has a beta of 1.4, pre-tax cost of debt of 5% and an effective corporate tax rate of 20%. The weight of debt in its capital structure is 60% and the rest is equity. The current risk-free rate is 2% and the expected market return is 7.5%. What is this company's weighted average cost of capital? Answer in percent, rounded to one decimal place.