Question: please show your work, don't use Exel Compute the WACC of a hypothetical firm, if you know the return in the market, the risk free

please show your work, don't use Exel

Compute the WACC of a hypothetical firm, if you know the return in the market, the risk free rate, the cost of debt and unlevered bheta are . 12, 02,.08 and 1 , and the weights of debt and equity are 40% and 60%, respectively domestically. In the foreign nation, respective values are .14,.04,.1,1.3,70% and 30%. Assume debt and equity of the project abroad are .7 and .3. Additionally, assume .8 is financed abroad and 2 is financed in the US of the total debt

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Formulate a linear program which can be used to generate a comprehensive plan for the whole Far Eastern operations. Clearly define every variable used in your formulation. Start your report with an...

please calculate with formulas and answer the questions below. what is not clear??? i took screen shots and its very clear on my end. i already took a lot of pictures. which one exactly is not clear?...

Financial Statements for use on Tasks Here are the financial statements you are to use in this exercise: ACME Iron Balance Sheet Assets Current assets: 2014 2015 change Cash 500,000 600,000 100,000...

I need it in next 8 hrs. it is finance xcase study GreenEarth Corporation On February 5, 1994, Gary Pratt and Roger Wilson III, chairman of GreenEarth Corporation and Wilson Lumber Corporation...

Bloomberg CASEO Businessweek STUDIES 4 Weighted Average Cost of Capital Analyze how the theoretical concepts This lesson explores how several companies and industries are of weighted average cost of...

Stuck on a corporate finance question on capital structure (WACC). PLEASE HELP (URGENT). Question 1, part A and B. Would be great if someone can solve it for me, if not, please teach me how to...

FINE 342 * represents a more difficult problem. 1 Payout Policy/Capital Structure (15 pts) Consider a firm F that generates a single cash-flow in one year which depends on the state of the economy:...

Ans??? 20 Bloomberg Businessweek Recessions The Year Ahead 2019 An early warning system for downturns may be giving off mixed signals Historically, the $15.4 trillion U.S. Treasury market has offered...

fkaa There are 3 parts to question it is an article: UK Corporate Governance Code reporting last year, FRC stated that: "Effectively applying the Corporate Governance Code Principles is much more...

only 10,11,12 and 13 ACTG103: Financial Theory and Techniques Things to know about the assignment: Excel Spreadsheet for calculations You need to use the attached excel sheet titled "ACTG103 Group...

The company is 3M. The record of the company's financials can be emailed if needed. Name: Research Project 3 From the text, the Weighted Average Cost of Capital is: WACC = (E/V) x RE+ (D/V) x Rp X...

Prove corollary 5.1.1. If 1. x* is a stationary point of f, that is, f(x) = 0, and 2. f is locally strictly concave at x*, that is, Hf (x*) is negative definite then x* is a strict local maximum of f...

Sprint Cup Series: Tony Stewart in the Top 5 25 C 20 15 E 10 15 15 1 10 2005 2006 2007 2008 2009 2010 Year

For Miller's model ( 1 9 7 7 ) , which are the tax assumption and the optimal capital structure? Question 2 3 options: corporate taxes, 1 0 0 % equity corporate and personal taxes, ( almost ) 1 0 0 %...

Which of the following are problems with identifying users of ABC? Multiple select question. ABC means different things to different organizations. Organizations will announce the discontinuance of...

(Appendices) ENDING INVENTORY, COST OF GOODS SOLD, AND GROSS MARGIN. Wilson Company sells a single product. At the beginning of the year, Wilson had 120 units in stock at a cost of $8 each. During...

(Appendices) PURCHASES RECORDED GROSS. Dawson Enterprises uses the periodic system and records purchases gross. On a recent day, Dawson engaged in the following three transactions: LO2 a) Purchased...

(Appendices) PURCHASES RECORDED NET. Clean Wheels Car Wash purchased $54,200 (list price) of soap for its car-washing machines. The seller offered credit terms of 2/10, n/20. Clean Wheels records...