What is the weighted average cost of capital if a business has a cost of equity of
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Question:
What is the weighted average cost of capital if a business has a cost of equity of 11%, a yield on debt of 6%, a tax rate of 30%, 100 million market value of debt, and 250 million market value of equity?
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8.5%
9.06%
9.57%
7.6%
Based on the information in the table, what is the share price when the enterprise value to sales (EV/Sales) multiple of a comparable company is 2.4x?
Sales$3,000
EBITDA$2,200
EBIT$1,750
Net Income$1,100
Cash and Cash Equivalents$120
Short Term Interest Bearing Debt$210
Long Term Interest Bearing Debt$850
BV Equity$1,500
Shares Outstanding in Millions100
What is share price?
Related Book For
Intermediate Financial Management
ISBN: 9780357516669
14th Edition
Authors: Eugene F Brigham, Phillip R Daves
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