Sixx AM Manufacturing has a target debt-equity ratio of 0.64. Its cost of equity is 21 percent,

Fantastic news! We've Found the answer you've been seeking!

Question:

Sixx AM Manufacturing has a target debt-equity ratio of 0.64. Its cost of equity is 21 percent, and its cost of debt Is 9 percent. If the tax rate Is 34 percent, what is the company's WACC? ?

Related Book For answer-question

Fundamentals of corporate finance

ISBN: 978-0073382395

9th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

See More Books

Posted Date: Mar 05, 2024 03:45 AM

See More Questions

Retlaw Corporation (RC) manufactures time series photographic equipment. It is currently at its target debt equity ratio of .80. Its considering building a new $50 million manufacturing facility....
Contributing factors to low employee pay vary. Employee compensation can be evaluated on location, job classification, skill and demand. While economic conditions can play a factor I would closely...
Either: Prove that k-means will produce k clusters, allnonempty, OR: Give anexample of a set D of data points (with no repeated data point), avalue for k(k
What are the two fundamental assumptions that are used to support the M&M capital structure theory? Describe each in commonsense terms.
Jill worked for a business in Denver. She took a new job with a different company in Colorado Springs, 90 miles away. Her commuting distance from her old home to her old employer in Denver was 15...
Linda Budd went searching for a new friend and she found one for $$400.1$ A brand new puppy. She purchased the puppy from Bernadette Vicidomine, a person who regularly sells puppies. Budd took her...
Part A of Case 4.2 analyzed the profitability and risk of Wal-Mart Stores for its fiscals 2006, 2007, and 2008. Part B of this case compares the profitability and risk ratios of Walmart and two other...
Simplify: 6/8p 98p.
Saint Leo is developing a plan to promote their new Center in your hometown. The University's marketing director wants to use a varied and balanced approach to IMC. For each of the five IMC types...
a. On February 15, paid $140,000 cash to purchase GMI's 90-day short-term notes at par, which are dated February 15 and pay 6% interest (classified as held-to-maturity). b. On March 22, bought 1,000...
Calculate EVA and simplified ROIC tree Certain company has: a) Book value of fixed assets = 1000 b) Book value of current assets = 1000 c) Cash = 200 d) Account payables = 200 e) Accruals = 100 f)...
Mark can type 45 words per minute, how many words can make Mark type in 30 minutes?
Explain Assume that you are given an integer x and two arrays A and B (not sorted) which contain a total of 2n integers (n each). Design a O(nlogn) algorithm to determine whether there exists an...
The project reads in a non-negative integer (1 or greater) from theuser. The user is prompted with a menu of choices. The menu is displayed repetitively until theuser chooses to quit,The menu choices...
Due date: 2nd Jan CIVL 394 FINAL PROJECT EVALUATION OF PROJECT IMPROVEMENTS FOR SELANGOR HOTEL PROJECT The New Year eve parties for 2011 had been the best ever in Malaysia. The Hotel Industry was...
County Company had the following partially completed payroll register: Requirements 1. Complete the payroll register. Round to two decimals. 2. Journalize County, Companys salaries and wages expense...
The activities listed in lines 2125 serve primarily as examples of A) Underappreciated dangers B) Intolerable risks C) Medical priorities D) Policy failures
Current Ratio Explain what it means for a firm to have a current ratio equal to .50. Would the firm be better off if the current ratio were 1.50? What if it were 15.0? Explain your answers.
Cost of Equity and Leverage assuming a world of corporate taxes only show that the cost of equity, RE is as given in the chapter by M&M Proposition II with corporate taxes
Consider a firm with a contract to sell an asset for $165,000 four years from now. The asset costs $94,000 to produce today. Given a relevant discount rate on this asset of 13 percent per year, will...
Match the following terms in the first column with the definitions or examples in the second column. L DBMS 2. Transaction file 3. Data warehouse 4. Primary key 5. SQL 6. CASE tool 7. Hungarian...
Currently, rotational database technology is probably the most prevalent database technology used in modern information technology shops. But database technology is an evolving field and new...
Create the Web site using appropriate technologies, getting a domain name, and so forth. Set up e-mail with the domain name, as well. If it is appropriate for the company to have shopping cart and...

Sixx AM Manufacturing has a target debt-equity ratio of 0.64. Its cost of equity is 21 percent,

Question:

Expert Answer:

To calculate the Weighted Average Cost of Capital WACC we need to first find the weights of equity a... View the full answer

Fundamentals of corporate finance

Students also viewed these finance questions