WACC is weighted Avg cost of sources in Capital Structure.
Source | Weight | Cost | Wtd Cost |
Debt | 30.00% | 3.00% | 0.90% |
Preferred Stock | 10.00% | 9.00% | 0.90% |
Common Stock | 60.00% | 14.00% | 8.40% |
WACC | 10.20% |
WACC is 10.20%
Question 7 (1 point) A firm has determined its target capital structure and it after-tax cost...
Question 6 (1 point) 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) Proportion 30% Cost 38 Source of Capital Long-term Debt (after taxes) Preferred Stock Common Stock 109 60% Your Answer: Answer
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
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...
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...
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 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...
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 is used in the...
A firm has determined its cost of each source of capital and optimal capital structure which is composed of the following sources and target market value proportions. Source of capital Target Market Proportions After-tax Cost Long-term Debt 35% 9% Preferred Stock 10 14 Common Stock Equity 55 20 The firm is considering an investment opportunity, which has an internal rate of return of 18 percent. The project should not be considered because its internal rate of return is less than...
A firm has determined its optimal capital structure which is composed of the following sources and target market value proportions. Additionally, the firm's marginal tax rate is 40 percent Source of Capital Long-term debt Preferred stock Common stock equity Market Proportions 20% 10 70 Debt: The firm can sell a 12-year, $1,000 par value, 7 percent annual bond for $880. Preferred Stock: The firm has determined it can issue preferred stock at $75 per share par value. The stock will...
Question 7 (1 point) A firm has an effective (after-tax) cost of debt of 4%, and its weight of debt is 40%. Its equity cost of capital is 12%, and its weight of equity is 60%. Calculate the firm's weighted average cost of capital (WACC). [Enter your answer as a percentage rounded to two decimal places.] Your Answer: Answer