Question: please show work in detail & clear & neat Use the following information to complete Questions 1-5. The following data pertains to Xena Corp. Xena

please show work in detail & clear & neat  please show work in detail & clear & neat Use the
following information to complete Questions 1-5. The following data pertains to Xena

Use the following information to complete Questions 1-5. The following data pertains to Xena Corp. Xena Corp. Total Assets $23,610 $11,070 10.2% Interest-Bearing Debt (market value) Average borrowing rate for debt Common Equity: Book Value $6,150 Market Value $25,830 Marginal Income Tax Rate 37% Market Beta 1.73 1. Using the information from the table, and assuming that the risk-free rate is 4.5% and the market risk premium is 6.2%, calculate Xena's cost of equity capital, using the capital asset pricing model: A) 10.4% B) 13.4% C) 15.2% D) 8.9% 2. Using the information from the table, calculate Xena's cost of debt capital, A) 11.5% B) 10.0% C) 7.2% D) 6.4% 3. Using the information from the table, determine the weight on debt capital that should be used to calculate Xena's weighted-average cost of capital: A) 26.2% B) 30.0% C) 50.0% D) 61.3% 4. Using the information from the table, determine the weight on equity capital that should be used to calculate Xena's weighted-average cost of capital: A) 24.0% B) 73.8% C) 70.0% D) 38.7% 5. Using the information from the table, and assuming that the risk-free rate is 4.5% and the market risk premium is 6.2%, calculate Xena's weighted-average cost of capital: A) 12.6% B) 13.8% C) 11.7% D) 9.0%

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