Question

Based on the information below: After % of tax Source of Amount of Total cost of Capital Funds Capital $ Bonds 198,565.00 8%
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Source Bonds Preferred Retained Amount weight % Cost of cap. W*cost $ 198,565.00 0.137018 8% 1.10% $ 265,000.00 0.182861 12%

Add a comment
Know the answer?
Add Answer to:
Based on the information below: After % of tax Source of Amount of Total cost of Capital Funds Capital $ Bonds 198,...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • QUESTION 43 Based on the information below: % of Total After tax cost of Capital 8% Source of Capital Bonds Preferr...

    QUESTION 43 Based on the information below: % of Total After tax cost of Capital 8% Source of Capital Bonds Preferred Stock Retained earnings Total Amount of Funds $ 198,565.00 265,000.00 985,621.00 $ 1,449,186.00 12% $ 1 196 100.00% What is the firm's cost of capital? C10.77% C 8.56% C 7.23% C 6.85%

  • A firm has determined its target capital structure and it after-tax cost for each source of...

    A firm has determined its target capital structure and it after-tax cost for each source of capital. What is the firm's weighted average cost of capital (WACC)? (Enter your answers as a percentge rounded to 2 decimal places) Cost 49 Source of Capital Long-term Debt (after taxes) Preferred Stock Common Stock Proportion 30% 10% 60% 10% 16% Your Answer: Answer Hide hint for Question 11 Weight average cost of capital= weight of long-term debt cost of debt(after tax)+weight of preferred...

  • A firm has determined its target capital structure and it after-tax cost for each source of...

    A firm has determined its target capital structure and it after-tax cost for each source of capital. What is the firm's weighted average cost of capital (WACC)? (Enter your answers as a percentge rounded to 2 decimal places) Cost Proportion 30% Source of Capital Long-term Debt (after taxes) Preferred Stock Common Stock 6096 Your Answer: Answer

  • 6. 6: The Cost of Capital: Weighted Average Cost of Capital The Cost of Capital: Weighted...

    6. 6: The Cost of Capital: Weighted Average Cost of Capital The Cost of Capital: Weighted Average Cost of Capital The firm's target capital structure is the mix of debt, preferred stock, and common equity the firm plans to raise funds for its future projects. The target proportions of debt, preferred stock, and common equity, along with the cost of these components, are used to calculate the firm's weighted average cost of capital (WACC). If the firm will not have...

  • Blueprint 6.  6: The Cost of Capital: Weighted Average Cost of Capital Quantitative Problem: Barton Industries expects...

    Blueprint 6.  6: The Cost of Capital: Weighted Average Cost of Capital Quantitative Problem: Barton Industries expects that its target capital structure for raising funds in the future for its capital budget will consist of 40% debt, 5% preferred stock, and 55% common equity. Note that the firm's marginal tax rate is 25%. Assume that the firm's cost of debt, rd, is 10.3%, the firm's cost of preferred stock, rp, is 9.5% and the firm's cost of equity is 12.9% for...

  • The Cost of Capital: Weighted Average Cost of Capital The firm's target capital structure is the...

    The Cost of Capital: Weighted Average Cost of Capital The firm's target capital structure is the mix of debt, preferred stock, and common equity the firm plans to raise funds for its future projects. The target proportions of debt, preferred stock, and common equity, along with the cost of these components, are used to calculate the firm's weighted average cost of capital (WACC). If the firm will not have to issue new common stock, then the cost of retained earnings...

  • Determining the cost of Capital: Weighted Average Cost of Capital The firm's target capital structure is...

    Determining the cost of Capital: Weighted Average Cost of Capital The firm's target capital structure is the mix of debt, preferred stock, and common equity the firm plans to raise funds for its future projects. The target proportions of debt, preferred stock, and common equity, along with the cost of these components, are used to calculate the firm's weighted average cost of capital (WACC). If the firm will not have to issue new common stock, then the cost of retained...

  • Determining the Cost of Capital: Weighted Average Cost of Capital The firm's target capital structure is...

    Determining the Cost of Capital: Weighted Average Cost of Capital The firm's target capital structure is the mix of debt, preferred stock, and common equity the firm plans to raise funds for its future projects. The target proportions of debt, preferred stock, and common equity, along with the cost of these components, are used to calculate the firm's weighted average cost of capital (WACC). If the firm will not have to issue new common stock, then the cost of retained...

  • What is the weighted average cost of capital based on the information provided in the table...

    What is the weighted average cost of capital based on the information provided in the table below? Type Weighting Bonds Preferred Stock Common Stock 40% 10% 50% (After-Tax) Cost 5% 7% 10%

  • Keep the Highest: /2 Attempts: 6. 6: The Cost of Capital: Weighted Average Cost of Capital...

    Keep the Highest: /2 Attempts: 6. 6: The Cost of Capital: Weighted Average Cost of Capital The Cost of Capital: Weighted Average Cost of Capital The firm's target capital structure is the mix of debt, preferred stock, and common equity the firm plans to raise funds for its future projects. The target proportions of debt, preferred stock, and common equity, along with the cost of these components, are used to calculate the firm's weighted average cost of capital (WACC). If...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT