Company XYZ: Debt Preferred Common Beta (XYZ Common Stock) (Stock) Market return T-Bill rate Market Rate...

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Company XYZ: Debt Preferred Common Beta (XYZ Common Stock) (Stock) Market return T-Bill rate Market Rate 9.00% 11.00% 17.50% 1.30 8.50% 3.00% % total capitalization 55% 10% 35% Calculate the Weighted Average Cost of Capital for XYZ (calcute using only pre-tax items) Calculate the required retum of XYZ common stock using Capital Asset Pricing Model. Calculate the market risk premium given the data above Given the above information, what is the required retum if Beta goes to 1.1 and the T-Bill rates goes to 5%? (hold all other data constant) Calculate the after tax cost of debt if the tax rate is 30% Company XYZ: Debt Preferred Common Beta (XYZ Common Stock) (Stock) Market return T-Bill rate Market Rate 9.00% 11.00% 17.50% 1.30 8.50% 3.00% % total capitalization 55% 10% 35% Calculate the Weighted Average Cost of Capital for XYZ (calcute using only pre-tax items) Calculate the required retum of XYZ common stock using Capital Asset Pricing Model. Calculate the market risk premium given the data above Given the above information, what is the required retum if Beta goes to 1.1 and the T-Bill rates goes to 5%? (hold all other data constant) Calculate the after tax cost of debt if the tax rate is 30%

Answer rating: 100% (QA)

Lets address each question step by step 1 Calculate the Weighted Average Cost of Capital WACC for XYZ calculate using only pretax items The WACC is th... View the full answer