Wilson has 250 million shares and the price per share is $60. It also has 34 million

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

Question:

Wilson has 250 million shares and the price per share is $60. It also has 34 million bonds with a price per bond of $880 and a YTM of 5%. The tax rate of the company is 30%. If the cost of equity is 16%, what is the after tax WACC for Wilson?

Related Book For answer-question

Fundamental Accounting Principles

ISBN: 978-0078110870

20th Edition

Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta

See More Books

Posted Date: Jun 19, 2023 07:30 AM

See More Questions

EBIT is 22.000, taxes 34%, depreciation is 30.000. What is the operating cash flow? Anthony operates a part time auto repair service. He estimates that a new diagnostic computer system will result...
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
The treasurer of Kelly Bottling Company (a corporation) currently has $200,000 invested in preferred stock yielding 10 percent. He appreciates the tax advantages of preferred stock and is considering...
Car A is due north of Car B. In the Earth frame, Car A is moving south and Car B is moving East. What direction is Car B moving as seen by Car A? north south east west north and east north and west...
Three equal resistors (R) are connected to a battery as shown in Fig. 19-42. Qualitatively, what happens to? (a) The voltage drop across each of this resistor, (b) The current flow through each, (c)...
Find the capacitance of an isolated ball-shaped conductor of radius R1 surrounded by an adjacent concentric layer of dielectric with permittivity e and outside radius R 2
Assume that Hector Corporations comparative balance sheet reported these amounts: Requirement 1. Assume that on January 2, 2010, Hector sold 1/2 of its plant and equipment for $237,000 in cash....
Off-Shore Jewelry, Inc. is a relatively small, but fast-growing U.S. based private company. It designs, manufacturers, and distributes fine jewelry in the United States. To reduce costs, it has...
Compare Cleveland Clinic's financial ratios for the most recent three years against the national norma and include analytical comments and how the organization compares to the national norms as well...
Summarize the concept of difference in enforcement of accounting standards: Differences in countries institutional settings have long been recognized in accounting research. Countries have been...
The balance sheet: Is for a single point in time Lists Assets, Liabilities and Income O Lists Shareholders equity O A and B are true Question 5 The future value of a dollar. future an initial deposit...
Carry trades in the foreign exchange markets are currently a widely used practice, not only by fund managers and traders, but also by individual investors. What is meant by carry trade in the foreign...
As an Fire Officer, unforeseen challenges are going to constitute the bulk of your workdays. It might be something big, like a long-committed employee who decided to quit, or something small, like a...
Explain Hester's concept of Fairness as a principle to guide urban design and reflect on how you think this characteristic is incorporated or not in the community Urban habitation where ecological...
Define challenges to innovation. Define barriers to innovation. Listed below are six different practices in organisations. Discuss how these practices can overcome challenges and barriers to...
What return should be expected from investing in the market portfolio that is expected to yield 18% if the investment includes all of the investor's funds plus 30% additional funds borrowed at the...
Harold Manufacturing produces denim clothing. This year, it produced 5,100 denim jackets at a manufacturing cost of $42.00 each. These jackets were damaged in the warehouse during storage. Management...
In Problems 718, write the augmented matrix of the given system of equations. f0.01x0.03y = 0.06 [0.13x + 0.10y = 0.20
Hollywood Entertainment began operations in January 2011 with two operating (selling) departments and one service (office) department. Its departmental income statements follow. The company plans to...
Xpress Delivery Service completed the following transactions and events involving the purchase and operation of equipment for its business. 2010 Jan. 1 Paid $24,950 cash plus $1,950 in sales tax for...
Complete the following statements by filling in the blanks. 1. _______ is the process of monitoring planning decisions and evaluating an organizations activities and employees. 2. _______ is the...
A flywheel rotating freely at $1800 \mathrm{rev} / \mathrm{min}$ clockwise is subjected to a variable counterclockwise torque which is first applied at time $t=$ 0 . The torque produces a...
A wheel of radius $r$ rolls on a flat surface without slipping. Determine the angular motion of the wheel in terms of the linear motion of its center $O$. Also determine the acceleration of a...
The right-angle bar rotates clockwise with an angular velocity which is decreasing at the rate of $4 \mathrm{rad} / \mathrm{s}^{2}$. Write the vector expressions for the velocity and acceleration...

Wilson has 250 million shares and the price per share is $60. It also has 34 million

Question:

Expert Answer:

To calculate the weighted average cost of capital WACC for Wilson after taxes we need to consider th... View the full answer

Fundamental Accounting Principles

Students also viewed these finance questions