What is the WACC for a firm with 50% debt and 50% equity that pays 12% on its debt, 20% on its equity, and has a 21% tax rate?
Multiple Choice
9.6%
12.0%
14.7%
16.0%
What is the WACC for a firm with 50% debt and 50% equity that pays 12% on its debt, 20% on its equity, and has a 21% tax...
Lannister Manufacturing has a target debt-equity ratio of 0.62. Its cost of equity is 20 percent, and its cost of debt is 12 percent. If the tax rate is 32 percent, what is the company's WACC? Multiple Choice 12.66% O 14.7% 14.7% 12.69% O 16.24% 16.24%
What is the WACC for a firm with 40% debt, 20% preferred stock, and 40% equity if their respective costs are 6% after-tax, 12%, and 18%? The firm's tax rate is 21%.
Ivan Industries (II) has a debt-to-equity ratio of 1.4, a corporate tax rate of 30%, pays 4% interest on its debt and has a required rate of return on equity of 12%. What is II’s WACC? How much does the debt tax shield reduce II’s WACC? What is the required rate of return on firm assets?
A firm currently has a debt-equity ratio of 0.9. The debt, which is virtually riskless, pays an interest rate of 3 %. The expected rate of return on the equity is 12 %. What is the Weighted-Average Cost of Capital if the firm pays no taxes? wacc = 7.74 What would happen to the expected rate of return on equity if the firm changed its debt-equity ratio to 0.1? Assume the firm pays no taxes, the cost of debt does...
A firm has $50 million in equity and $20 million of debt, it pays dividends of 30% of net income, and has a net income of $10 million. What is the firm's internal growth rate? O A. 9% OB. 11% O c. 12% OD. 10%
what is the WACC? 1. A firm has a target debt-to-equity ratio of 1. Its cost of equity equals 12 percent, the cost of debt is 8 percent, and the tax rate is 30 percent. What is the weighted average cost of capital (WACC)? a) 10.0 percent. b) 10.8 percent. c) 9.8 percent. d) 8.8 percent.
Sixx AM Manufacturing has a target debt—equity ratio of 0.61. Its cost of equity is 20 percent, and its cost of debt is 9 percent. If the tax rate is 32 percent, what is the company's WACC? Multiple Choice 14% 11.38% 11.53% 15.48% 14.74%
Zorin Industries has a debt-equity ratio of 1.3. Its WACC is 12%, and its cost of debt is 6%. The corporate tax rate is 35% What is Zorin’s unlevered cost of equity capital?
2. A firm has a target debt-to-equity ratio of 3. Its cost of equity equals 12 percent, its cost of debt is 9 percent, and the tax rate is 34 percent. What is the WACC? a) 7.46 percent. b) 8.97 percent d) 10.00 percent. d) 10.49 percent.
23) What proportion of a firm is equity financed if the WACC is 12%, the before-tax cost of debt is 9%, the tax rate is 35%, and the required return on equity is 15%? (2 points) Show all calculations and results with 1 or 2 decimals.