Turin Corp. has a weighted average cost of capital of 8.5 percent. The company’s cost of...
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Turin Corp. has a weighted average cost of capital of 8.5 percent. The company’s cost of equity is 11 percent and its pre-tax cost of debt is 6.1 percent. The tax rate is 35 percent. What is the company’s target debt/equity ratio? |
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Turin Corp. has a weighted average cost of capital of 8.5 percent. The company’s cost of...
Fama’s Llamas has a weighted average cost of capital of 9.1 percent. The company’s cost of...
Fama’s Llamas has a weighted average cost of capital of 9.1 percent. The company’s cost of equity is 13 percent, and its pretax cost of debt is 6.1 percent. The tax rate is 24 percent. What is the company’s target debt-equity ratio? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)
Fama’s Llamas has a weighted average cost of capital of 9.5 percent. The company’s cost of...
Fama’s Llamas has a weighted average cost of capital of 9.5 percent. The company’s cost of equity is 14 percent, and its pretax cost of debt is 6.1 percent. The tax rate is 25 percent. What is the company’s target debt-equity ratio? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., .1616.)
Fama’s Llamas has a weighted average cost of capital of 10.3 percent. The company’s cost of...
Fama’s Llamas has a weighted average cost of capital of 10.3 percent. The company’s cost of equity is 14 percent, and its pretax cost of debt is 7.5 percent. The tax rate is 21 percent. What is the company’s target debt-equity ratio? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., .1616.) please show every step
Fama’s Llamas has a weighted average cost of capital of 10.2 percent. The company’s cost of equity is 12 percent, and it...
Fama’s Llamas has a weighted average cost of capital of 10.2 percent. The company’s cost of equity is 12 percent, and its pretax cost of debt is 7.1 percent. The tax rate is 24 percent. What is the company’s target debt-equity ratio? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)
Fama's Llamas has a weighted average cost of capital of 11.5 percent. The company's cost of...
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.)
Gunnar Corp. uses no debt. The weighted average cost of capital is 8.5 percent. The current...
Gunnar Corp. uses no debt. The weighted average cost of capital is 8.5 percent. The current market value of the equity is $43 million and the corporate tax rate is 21 percent. What is EBIT?
Fama’s Llamas has a weighted average cost of capital of 8.2 percent. The company’s cost of...
Fama’s Llamas has a weighted average cost of capital of 8.2 percent. The company’s cost of equity is 11.8 percent, and its cost of debt is 6.4 percent. The tax rate is 22 percent. What is the company’s debt-equity ratio? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)
Fama’s Llamas has a weighted average cost of capital of 8.1 percent. The company’s cost of...
Fama’s Llamas has a weighted average cost of capital of 8.1 percent. The company’s cost of equity is 11.7 percent, and its cost of debt is 6.3 percent. The tax rate is 21 percent. What is the company’s debt-equity ratio? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)
Fama’s Llamas has a weighted average cost of capital of 8.7 percent. The company’s cost of...
Fama’s Llamas has a weighted average cost of capital of 8.7 percent. The company’s cost of equity is 12.3 percent, and its cost of debt is 6.9 percent. The tax rate is 22 percent. What is the company’s debt-equity ratio? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)
A firm wants to create a weighted average cost of capital (WACC) of 10.4 percent. The...
A firm wants to create a weighted average cost of capital (WACC) of 10.4 percent. The firm's cost of equity is 14.5 percent and its pre-tax cost of debt is 8.5 percent. The tax rate is 34 percent. What does the debt-equity ratio need to be for the firm to achieve its target WACC? Stiect one: 0 a. 0.51 O b. 0.57 O C. 0.62 d. 0.70 e. 0.86
A firm wants to create a weighted average cost of capital (WACC) of 10.4 percent. The firm's cost of equity is 14.5 percent and its pre-tax cost of debt is 8.5 percent. The tax rate is 34 percent. What does the debt-equity ratio need to be for the firm to achieve its target WACC? Stiect one: 0 a. 0.51 O b. 0.57 O C. 0.62 d. 0.70 e. 0.86
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