subject
Business, 12.08.2020 05:01 enrique3300

The yield to maturity on a company’s debt is 6.2% per year and the company’s cost of equity financing is 10.9% per year. The book value of the debt is $30.0 million and the book value of the equity is $15.0 million. The company’s tax rate is 32%. The market value of the debt is $36.9 million and the market value of the equity is $27.1 million. What is the company’s annual weighted average cost of capital?

ansver
Answers: 1

Other questions on the subject: Business

image
Business, 22.06.2019 03:00, janeou17xn
Put each of them in order. you are a young entrepreneur with a startup business. you now seek credit from the bank to expand it. what are the steps you will have to take? 1. you support your loan application with relevant documents. 2. you fill out the loan application form at the bank 3. you get an approval for the loan and the money is disbursed to your business account 4. you use the credit to further your business plan. 5. you have an interview with the loan officer and you explain your business plan.
Answers: 1
image
Business, 22.06.2019 21:20, hellodarkness14
What business practice contributed most to andrew carnegie’s ability to form a monopoly?
Answers: 1
image
Business, 23.06.2019 03:00, riamspmau
In each of the cases below, assume division x has a product that can be sold either to outside customers or to division y of the same company for use in its production process. the managers of the divisions are evaluated based on their divisional profits. case a b division x: capacity in units 200,000 200,000 number of units being sold to outside customers 200,000 160,000 selling price per unit to outside customers $ 90 $ 75 variable costs per unit $ 70 $ 60 fixed costs per unit (based on capacity) $ 13 $ 8 division y: number of units needed for production 40,000 40,000 purchase price per unit now being paid to an outside supplier $ 86 $ 74 required: 1. refer to the data in case a above. assume in this case that $3 per unit in variable selling costs can be avoided on intracompany sales. a. what is the lowest acceptable transfer price from the perspective of the selling division? b. what is the highest acceptable transfer price from the perspective of the buying division? c. what is the range of acceptable transfer prices (if any) between the two divisions? if the managers are free to negotiate and make decisions on their own, will a transfer probably take place?
Answers: 3
image
Business, 23.06.2019 15:00, dondre54
Refer to walgreens. when walgreens' managers responded to the threat of pbms by creating walgreens health initiatives, its own pbm business, they were using control.
Answers: 3
You know the right answer?
The yield to maturity on a company’s debt is 6.2% per year and the company’s cost of equity financin...

Questions in other subjects:

Konu
Mathematics, 20.10.2020 04:01
Konu
Mathematics, 20.10.2020 04:01
Konu
Mathematics, 20.10.2020 04:01