Lynux Ltd has a WACC of 10% It pays 6% on the debt issued. Lynux has S200m

Fantastic news! We've Found the answer you've been seeking!

Question:

Lynux Ltd has a WACC of 10% It pays 6% on the debt issued. Lynux has S200m of debt outstanding, while the equity value is $100m.

What is the cost of equity capital?

Related Book For answer-question

Principles of Finance

ISBN: 978-1285429649

6th edition

Authors: Scott Besley, Eugene F. Brigham

See More Books

Posted Date: Jun 22, 2023 05:37 AM

See More Questions

Here is the summarized four average risk projects with their rate of returns for Skye Computer Company Project Name Expected Rate of Return 1- Building Hospital 17.00% 2- Building School 16.00% 3-...
Last Sale Net Bid Ask Open Int Puts Last Sale Net bid Ask Vol Open Int 16Aug 155.00(1619H155-E) 6.45 0.75 6.95 7.25 9 16Aug 155.00(1619T155-E) 1.18 (0.75) 1.17 1.25 61 4505 16Aug 166.00(1619H160-E)...
Sheehan Corp. is forecasting an EPS of $3.00 for the coming year on its 500,000 outstanding shares of stock. Its capital budget is forecasted at $800,000, and it is committed to maintaining a $2.00...
You are a lead auditor from ABC Auditors Pty Ltd. Your client is Cassey's Quality Cars Ltd who are a large car dealership with branches across Queensland. ABC Auditors have performed audits for past...
V is a vector 14.3 units in magnitude and points at an angle of 34.8o above the negative x axis, (a) Sketch this vector. (b) Find Vx and Vy (c) Use Vx and Vy to obtain (again) the magnitude and...
A 2000-kg automobile starts from rest at point A on a 6o incline and coasts through a distance of 150 m to point B. The brakes are then applied, causing the automobile to come to a stop at point C,...
To calculate the expected frequencies, we must know the row totals, the column totals, and the ________________ total. In Exercises 35, fill in each blank with the appropriate word or phrase.
In early 20X1, SpaceTel Communications, a U.S.-based international telephone communications company, purchased the controlling interest in Sofia Telecom, Ltd. (STL) in Bulgaria. A key productivity...
Last year you bought some Alpha stock for $26.75 a share. It is currently selling for $32.50. You received a dividend of $2.25 during the year. What is your total rate of return?
Randy Smith was very proud of his new position as inventory control manager for theJohnson Trinket Company. His primary responsibility had been fairly clearly defined: Maintain an inventory level in...
Structural Approaches to Conflict Management Resolving conflict is an especially important skill. Our personal conflict resolution styles help us understand how we individually approach conflict...
Use a Venn diagram to answer. If n(A) = 8, n(B)= 11 and n(An B) = 3, what is n(AUB)? n(AUB) =
What are strategies for dealing with conflict early? Describe the resolution spectrum. For example, using alternative dispute resolution (ADR), mediation, arbitration, or other fact finder process....
What are examples of attributes of a well - crafted recommendation? A . A well - crafted recommendation clearly explains the point of view and summarizes the rational behind the point of view. B . A...
What was the case study about? What was good about the way the project(s) was managed? What could have been done differently and why? What did you learn from the case study? Was this case study...
Write three or more examples of clustering algorithm. (ex. Data analysis) : Explain about the two methods of choosing optimal number of clusters when using k-means. Describe how to find the optimal...
"The current devolution settlements do a good job of balancing the supremacy of the UK Parliament with the needs of Scotland, Wales, and Northern Ireland". Discuss this statement, drawing upon case...
Show that the peak of the black body spectrum as a function of ? is given by eq. (22.14) kg T Wmax = 2.82
Florida Electric Company (FEC) uses only debt and equity. It can borrow unlimited amounts at an interest rate of 10 percent as long as it finances at its target capital structure, which calls for 45...
What is the difference between a price-weighted index and a value-weighted index? Which is a better computational method?
Suppose a new, highly liberal Congress and presidential administration were elected. The first order of business for these bodies was to take away the independence of the Federal Reserve System and...
In an ideal gas mixture consisting of components $A$ and $B$, the partial pressure of component $A$ is equal to (a) $p_{\mathrm{A}}=\frac{n_{\mathrm{A}}-n_{\mathrm{B}}}{N}$ (b)...
The chemical potential of component $i$ in a solution mixture can be expressed as (a) $\mu_{i}=R T \ln G_{i}^{0}+a_{i}$ (c) $\mu_{i}=R T \ln G_{i}^{0}-a_{i}$ (b) \(\mu_{i}=R T \ln...
For any pure substance, the difference between $C_{P}$ and $C_{V}$ can be expressed in terms of the isothermal compressibility $\alpha$ and volume expansivity $\beta$ as (a)...

Lynux Ltd has a WACC of 10% It pays 6% on the debt issued. Lynux has S200m

Question:

Expert Answer:

To calculate the cost of equity capital we can use the formula for weighted aver... View the full answer

Principles of Finance

Students also viewed these finance questions