Calculate the WACC for a company with 84,841 in equity, 78,466 in debt with an average...
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Calculate the WACC for a company with 84,841 in equity, 78,466 in debt with an average interest rate of 0.08, a tax rate of 0.53, a beta of 1.21, a risk free rate of 0.05, and a market risk premium of 0.08. Question 2 pts Suppose a company uses only debt and internal equity to Finance its capital budget and uses CAPM to compute its cost of equity. Company estimates that its WACC is 0.08. The capital structure is 0.70 debt and 0.30 internal equity. Before tax cost of debt is 0.06 and tax rate is 0.39. Risk free rate is rRF-0.04 and market risk premium (rm rRF) - 0.08: What is the beta of the company Calculate the WACC for a company with 84,841 in equity, 78,466 in debt with an average interest rate of 0.08, a tax rate of 0.53, a beta of 1.21, a risk free rate of 0.05, and a market risk premium of 0.08. Question 2 pts Suppose a company uses only debt and internal equity to Finance its capital budget and uses CAPM to compute its cost of equity. Company estimates that its WACC is 0.08. The capital structure is 0.70 debt and 0.30 internal equity. Before tax cost of debt is 0.06 and tax rate is 0.39. Risk free rate is rRF-0.04 and market risk premium (rm rRF) - 0.08: What is the beta of the company
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calculate the Weighted Average Cost of Capital WACC we need to consider the weights of equity and de... View the full answer
Related Book For
Corporate Finance
ISBN: 978-0071339575
7th Canadian Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Ro
Posted Date:
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