Question: Polycorp has a debt equity ratio of 0.59.What is the correct debt ratio D/V that should be used in the WACC formula? WACC = ke

Polycorp has a debt equity ratio of 0.59.What is the correct debt ratio D/V that should be used in the WACC formula?

WACC = ke x E/V + kd x (1-t) x D/V

Provide an answer as a decimal accurate to two decimal places eg 60.156% should be entered as .60

Do not enter the % sign.

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!

Q:

1 ,Polycorp has a debt equity ratio of 0.61.What is the correct debt ratio D/V that should be used in the WACC formula? WACC = ke x E/V + kd x (1-t) x D/V 2, If a company with a rating of BBB has on...

Q:

1 Assume that A limited paid a dividend of21 cents per share just recently. The shares currently sell for $10.2. You also estimate that the dividend will grow steadily at 2.7 % per year into the...

Q:

QUESTION 17 The 90 day bank bill rate is quoted as 5.4 in the financial press. What is the correct cost of capital kbb to be used in the WACC calculation. Express as a number accurate to four places...

Q:

please help me with these finance questions. 1- Polycorp has a debt equity ratio of 0.72.What is the correct debt ratio D/V that should be used in the WACC formula? WACC = ke x E/V + kd x (1-t) x D/V...

Q:

Polycorp has a debt equity ratio of 0.63.What is the correct debt ratio D/V that should be used in the WACC formula? WACC = ke x E/V + kd x (1-t) x D/V Provide an answer as a decimal accurate to two...

Q:

Question 6: Calculate the cost of preference capital (k p ) for a non-redeemable preference share which has the following: Price = $17 and a Preference dividend of $1.4 paid every six months. Your...

Q:

Polycorp has a debt equity ratio of 0.63.What is the correct debt ratio D/V that should be used in the WACC formula? WACC = ke x E/V + kd x (1-t) x D/V Provide an answer as a decimal accurate to two...

Q:

Polycorp has a debt equity ratio of 0.65.What is the correct debt ratio D/V that should be used in the WACC formula? WACC = ke x E/V+ kd x (1-t) x D/V Provide an answer as a decimal accurate totwo...

Q:

Polycorp has a debt equity ratio of 0.65.What is the correct debt ratio D/V that should be used in the WACC formula? WACC = ke x E/V+ kd x (1-t) x D/V Provide an answer as a decimal accurate totwo...

Q:

Polycorp has a debt equity ratio of 0.55.What is the correct debt ratio D/V that should be used in the WACC formula? WACC = ke x E/V+ kd x (1-t) x D/V answer as a decimal accurate totwo decimal...

Q:

Last year's records of auto accidents occurring on a given section of highway were classified according to whether the resulting damage was $1000 or more and to whether a physical injury resulted...

Q:

AIM: Define a structure called cricket that will describe the following information: Player name Team name Batting average Using cricket, declare an array player with 50 elements and write a C...

Q:

Risk free rate is 4 . 2 5 % . Beta is 1 . 1 6 Return of total market 2 3 . 3 What is the capm rate

Q:

of planes and jets they sell. For example, Todd's sales team works exclusively with the Boeing 7 3 7 . What is the salesforce organization method Boeing uses? Type of account Regional Domestic...

Q:

Recognize the inevitability of people problems in any work group and understand some common origins of such problems

Q:

Know when and how self-appraisal can be a constructive element of the performance appraisal process

Q:

Appreciate important legal implications of performance appraisals