Business, 12.05.2020 20:57, lilinicholeb
Aiden Ruby is trying to decide whether to invest in a new line of business and wants to calculate their WACC. Assume that their capital structure consists of 58% common stock, 12% preferred stock, and 30% debt. Further, analysts predict that their future cost of debt will be 6% and their cost of preferred stock is 11%. We predict that their beta is 3.55. The current risk-free rate is 3.2%, the expected return to the market is 7%, and the tax rate is 21%. What is this firm s WACC?
Answers: 2
Business, 22.06.2019 04:40, mswillm
Dahlia enterprises needs someone to supply it with 127,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you’ve decided to bid on the contract. it will cost you $940,000 to install the equipment necessary to start production; you’ll depreciate this cost straight-line to zero over the project’s life. you estimate that in five years, this equipment can be salvaged for $77,000. your fixed production costs will be $332,000 per year, and your variable production costs should be $11.00 per carton. you also need an initial investment in net working capital of $82,000. if your tax rate is 30 percent and your required return is 11 percent on your investment, what bid price should you submit? (do not round intermediate calculations and round your final answer to 2 decimal places. (e. g., 32.16))
Answers: 3
Business, 22.06.2019 19:20, Tariah5970
Sanibel autos inc. merged with its competitor vroom autos inc. this allowed sanibel autos to use its technological competencies along with vroom autos' marketing capabilities to capture a larger market share than what the two entities individually held. what type of integration does this scenario best illustrate? a. vertical b. technological c. horizontal d. perfect
Answers: 2
Aiden Ruby is trying to decide whether to invest in a new line of business and wants to calculate th...
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