Here is some information about Stokenchurch Inc.:
Beta of common stock = 1.4
Treasury bill rate = 4%
Market risk premium = 6.7%
Yield to maturity on long-term debt = 10%
Book value of equity = $360 million
Market value of equity = $720 million
Long-term debt outstanding = $720 million
Corporate tax rate = 21%
What is the company’s WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Here is some information about Stokenchurch Inc.: Beta of common stock = 1.4 Treasury bill rate = 4% Market risk premium...
Here is some information about Stokenchurch Inc.: Beta of common stock = 1.7 Treasury bill rate = 4% Market risk premium = 8.0% Yield to maturity on long-term debt = 9% Book value of equity = $490 million Market value of equity = $980 million Long-term debt outstanding = $980 million Corporate tax rate = 21% What is the company’s WACC?
Here is some information about Stokenchurch Inc.: Beta of common stock = 1.9 Treasury bill rate = 4% Market risk premium = 8.2% Yield to maturity on long-term debt = 5% Book value of equity = $510 million Market value of equity = $1,020 million Long-term debt outstanding = $1,020 million Corporate tax rate = 21% What is the company’s WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Here is some information about Stokenchurch Inc.: Beta of common stock = 1.3 Treasury bill rate = 4% Market risk premium = 7.6% Yield to maturity on long-term debt = 5% Book value of equity = $450 million Market value of equity = $900 million Long-term debt outstanding = $900 million Corporate tax rate = 35% What is the company’s WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
usco Po 2. WACC. Here is some information about Stokenchurch Inc.: Beta of common stock = 1.2 Treasury bill rate = 4% Market risk premium = 7.5% Yield to maturity on long-term debt = 6% Book value of equity = $440 million Market value of equity = $880 million Long-term debt outstanding = $880 million Corporate tax rate = 21% What is the company's WACC? (LO13-1)
Problem 13-5 Calculating WACC (LO1) The total book value of WTC's equity is $8 million, and book value per share is $20. The stock has a market-to-book ratio of 1.5, and the cost of equity is 13%. The firm's bonds have a face value of $5 million and sell at a price of 110% of face value. The yield to maturity on the bonds is 10%, and the firm's tax rate is 21%. What is the company's WACC? (Do not...
In December 2016, Boise Cascade's stock had a beta of 0.97. The Treasury bill rate at the time was 4.34% percent, and the Treasury bond rate was 7.59% percent. The firm had debt outstanding of 1.586 billion and a market value of equity of 2.616 billion; the corporate marginal tax rate was 36.00%. Use 8.00%as the market risk premium. How much of the risk (in percentage terms) in the company can be attributed to business risk and how much to...
The common stock of Buildwell Conservation & Construction Inc. (BCCI) has a beta of.9. The Treasury bill rate is 4%, and the market risk premium is estimated at 6%. BCCI's capital structure is 29% debt, paying an interest rate of 10%, and 71% equity. The debt sells at par. Buildwell pays tax at 40%. a. What is BCCI's cost of equity capital? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.) Cost of...
Stock in CDB Industries has a beta of 1.10. The market risk premium is 7.2 percent, and T- bills are currently yielding 4.1 percent. The most recent dividend was $2.56 per share, and dividends are expected to grow at an annual rate of 5 percent indefinitely. If the stock sells for $45 per share, what is your best estimate of the company's cost of equity? (Do not round intermediate calculations and enter your answer percent rounded to 2 decimal places,...
Nodebt Inc. is a firm with all-equity financing. Its equity beta is 0.80. The Treasury bill rate is 2%, and the market risk premium is expected to be 7%. a. What is Nodebt’s asset beta? (Round your answer to 2 decimal places.) b. What is Nodebt’s WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Nodebt Inc. is a firm with all-equity financing. Its equity beta is 0.80. The Treasury bill rate is 4%, and the market risk premium is expected to be 6%. a. What is Nodebt’s asset beta? (Round your answer to 2 decimal places.) b. What is Nodebt’s WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)