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7. Calculate a firm's approximate WACC given that the debt-to-equity ratio is 3, the cost of...
what is the WACC? 1. A firm has a target debt-to-equity ratio of 1. Its cost...
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.
Dickson, Inc., has a debt-equity ratio of 2.6. The firm's weighted average cost of capital is...
Dickson, Inc., has a debt-equity ratio of 2.6. The firm's weighted average cost of capital is 9 percent and its pretax cost of debt is 7 percent. The tax rate is 24 percent. a. What is the company's cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.) b. What is the company's unlevered cost of equity capital? (Do not round intermediate calculations and enter your answer...
Dickson, Inc., has a debt-equity ratio of 2.4. The firm's weighted average cost of capital is...
Dickson, Inc., has a debt-equity ratio of 2.4. The firm's weighted average cost of capital is 9 percent and its pretax cost of debt is 7 percent. The tax rate is 25 percent. a. What is the company's cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the company's unlevered cost of equity capital? (Do not round intermediate calculations and enter your answer...
Dickson, Inc., has a debt-equity ratio of 2.3. The firm's weighted average cost of capital is...
Dickson, Inc., has a debt-equity ratio of 2.3. The firm's weighted average cost of capital is 11 percent and its pretax cost of debt is 8 percent. The tax rate is 23 percent. a. What is the company's cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the company's unlevered cost of equity capital? (Do not round intermediate calculations and enter your answer...
Dickson, Inc., has a debt-equity ratio of 2.15. The firm's weighted average cost of capital is...
Dickson, Inc., has a debt-equity ratio of 2.15. The firm's weighted average cost of capital is 8 percent and its pretax cost of debt is 5 percent. The tax rate is 25 percent. a. What is the company's cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the company's unlevered cost of equity capital? (Do not round intermediate calculations and enter your answer...
The debt-to-equity ratio of the CI Corp. is 0.5. To calculate the CI Corp’s cost of...
The debt-to-equity ratio of the CI Corp. is 0.5. To calculate the CI Corp’s cost of equity, use the following information: The CI Corp’s beta is 1.2, expected return on the market is 8%, and the risk-free rate is 2%. Its pretax cost of debt is 4%, what is the company’s WACC? The tax rate is 35%
The debt-equity ratio is 60%. The after-tax cost of debt is 15%. The cost of equity...
The debt-equity ratio is 60%. The after-tax cost of debt is 15%. The cost of equity is 20%. What is the WACC? 18.1% 17.0% 18.0% 16.9%
Lannister Manufacturing has a target debt−equity ratio of .55. Its cost of equity is 15 percent, and its cost of debt i...
Lannister Manufacturing has a target debt−equity ratio of .55. Its cost of equity is 15 percent, and its cost of debt is 7 percent. If the tax rate is 35 percent, what is the company’s WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) WACC
Weston Industries has a debt-equity ratio of 1.6. Its WACC is 7.8 percent, and its cost...
Weston Industries has a debt-equity ratio of 1.6. Its WACC is 7.8 percent, and its cost of debt is 5.5 percent. The corporate tax rate is 21 percent. a. What is the company’s cost of equity capital? b. What is the company’s unlevered cost of equity capital? c-1. What would the cost of equity be if the debt-equity ratio were 2? c-2. What would the cost of equity be if the debt-equity ratio were 1.0? c-3. What would the...
Zorin Industries has a debt-equity ratio of 1.3. Its WACC is 12%, and its cost of...
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?
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.
Dickson, Inc., has a debt-equity ratio of 2.6. The firm's weighted average cost of capital is 9 percent and its pretax cost of debt is 7 percent. The tax rate is 24 percent. a. What is the company's cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.) b. What is the company's unlevered cost of equity capital? (Do not round intermediate calculations and enter your answer...
Dickson, Inc., has a debt-equity ratio of 2.4. The firm's weighted average cost of capital is 9 percent and its pretax cost of debt is 7 percent. The tax rate is 25 percent. a. What is the company's cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the company's unlevered cost of equity capital? (Do not round intermediate calculations and enter your answer...
Dickson, Inc., has a debt-equity ratio of 2.3. The firm's weighted average cost of capital is 11 percent and its pretax cost of debt is 8 percent. The tax rate is 23 percent. a. What is the company's cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the company's unlevered cost of equity capital? (Do not round intermediate calculations and enter your answer...
Dickson, Inc., has a debt-equity ratio of 2.15. The firm's weighted average cost of capital is 8 percent and its pretax cost of debt is 5 percent. The tax rate is 25 percent. a. What is the company's cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the company's unlevered cost of equity capital? (Do not round intermediate calculations and enter your answer...
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