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Upton Umbrellas has a cost of equity of 11.5 percent, the YTM on the company's bonds is 6.1 percent, and the tax rate i...
Upton Umbrellas has a cost of equity of 11.5 percent, the YTM on the company's bonds is 6.1 percent, and the tax rate is 39 percent. The company's bonds sell for 103.1 percent of par. The debt has a book value of $405,000 and total assets have a book value of $951,000. If the market-to-book ratio is 2.71 times, what is the company's WACC? 6 14 points Multiple Choice Skipped 8.13% eBook Print References 9.79% 9.49% 8.24% 5.43%
Upton Umbrellas has a cost of equity of 11.2 percent, the YTM on the company's bonds is 5.8 percent, and the tax rate is 39 percent. The company's bonds sell for 93.2 percent of par. The debt has a book value of $396,000 and total assets have a book value of $948,000. If the market-to-book ratio is 2.62 times, what is the company's WACC?
Upton Umbrellas has a cost of equity of 12.1 percent, the YTM on the company's bonds is 6.2 percent, and the tax rate is 39 percent. The company's bonds sell for 103.7 percent of par. The debt has a book value of $423,000 and total assets have a book value of $957,000. If the market-to-book ratio is 2.89 times, what is the company's WACC?
Upton Umbrellas has a cost of equity of 12.1 percent, the YTM on the company's bonds is 6.2 percent, and the tax rate is 39 percent. The company's bonds sell for 103.7 percent of par. The debt has a book value of $423,000 and total assets have a book value of $957,000. If the market-to-book ratio is 2.89 times, what is the company's WACC? 9.96% 5.62% 8.49% 10.26% 8.35%
Upton Umbrellas has a cost of equity of 12.7 percent, the YTM on the company's bonds is 5.6 percent, and the tax rate is 40 percent. The company's bonds sell for 104.3 percent of par. The debt has a book value of $441,000 and total assets have a book value of $963,000. If the market-to-book ratio is 3.07 times, what is the company's WACC? Multiple Choice 10.62% 10.37% 8.49% 5.44% 8.33%
Skolits Corp. has a cost of equity of 11.3 percent and an aftertax cost of debt of 4.59 percent. The company's balance sheet lists long-term debt of $365,000 and equity of $625,000. The company's bonds sell for 105.1 percent of par and market-to-book ratio is 2.95 times. If the company's tax rate is 39 percent, what is the WACC? Multiple Choice 8.83% 10.78% 10.14% 9.84% 9.33%
The Two Dollar Store has a cost of equity of 10.8 percent, the YTM on the company's bonds is 6.1 percent, and the tax rate is 35 percent. If the company's debt–equity ratio is .55, what is the weighted average cost of capital?
Double-Major Co. has a cost of equity of 11.7 percent and an aftertax cost of debt of 4.47 percent. The company's balance sheet lists long- term debt of $345,000 and equity of $605,000. The company's bonds sell for 104.3 percent of par and market-to-book ratio is 2.83 times. If the company's tax rate is 40 percent, what is the WACC? Multiple Choice Ο 10.13% Ο 9.07% Ο 10.44% Ο 11.10% Ο 9.60%
Take It All Away has a cost of equity of 10.45 percent, a pretax cost of debt of 5.21 percent, and a tax rate of 34 percent. The company's capital structure consists of 65 percent debt on a book value basis, but debt is 25 percent of the company's value on a market value basis. What is the company's WACC?
Fama's Llamas has a weighted average cost of capital of 11.5 percent. The company's cost of equity is 17 percent, and its pretax cost of debt is 8.5 percent. The tax rate is 34 percent. What is the company's target debt-equity ratio? (Do not round your intermediate calculations.)