MTCM Company has a target debt-equity ratio of 0.5. Its cost of equity is fifteen percent, and its cost of debt is eleven percent. What is the firm's WACC given a tax rate of 31 percent? 

LoanShark Bank has an issuance of preferred shares with a P5 stated dividend that was sold for P92 per share. What is the bank's cost of preferred shares? 

 Marcelo Company' stock has a beta of 0.97. The market risk premium is ten percent while T-bills are currently yielding five and one half percent. The company's most recent dividend was 1.70 per share, and dividends are expected to grow at a seven percent annual rate indefinitely. The stock sells for 32 a share. What is the estimated cost of equity? 

Thumbss company has the following capital structure: equity (fifty percent); debt (forty five percent) and preferred shares (five percent). The company's after-tax cost of debt is 14% and the cost of equity is 16%. Given that the company's weighted average cost of capital is 14.5%, its cost of preferred equity is? 

 Sonic Masters maintains a debt-equity ratio of 0.65 and has a tax rate of thirty-two percent. The firm does not issue preferred stock. The pre-tax cost of debt is 9.8%. There are 25,000 shares of stock outstanding with a beta of 1.2 and a market price of nineteen pesos a share. The current market risk premium is 8.5 percent and the current risk-free rate is 3.6 percent. This year, the firm paid an annual dividend of P1.10 a share and expects to increase that amount by 2 percent each year. 

What is the firm's WACC?

Answer rating: 100% (QA)

Question 1 WACC Weight of Debt x Cost of Debt Weight of Equity x Cost of Equity Weight of Debt 05 Co... View the full answer