Bento, Inc., has a target debt-equity ratio of .65. Its cost of equity is 16 percent, and its cost of debt is 5 percent. If the tax rate is 23 percent, what is the company’s WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)   WACC:______%

Q: X company has an unlevered cost of capital of 11%,  a cost of debt of 8%, and a tax rte of 35%. What…

A: Debt-to-Equity ratio shows the proportion of debt capital including non-current liabilities and…

Q: M&M Corporation has a WACC of 20 percent. Its cost of debt is 13 percent. If habitat’s debt-equity…

A: Source of raising capital include: Debt capital Equity capital Public deposit Retained earnings…

Q: Suppose that TapDance, Inc.’s capital structure features 65 percent equity, 35 percent debt, and…

A: WACC = (Weight of common stock * Cost of common equity) + [Weight of debt * Pretax cost of debt(1 -…

Q: Targaryen Corporation has a target capital structure of 65 percent common stock, 5 percent preferred…

A: Capital structure of Common stock is 65%  Capital structure of Preferred stock is 5% Capital…

Q: A firm has an ROE of 4.4%, a debt-to-equity ratio of 0.7, and a tax rate of 35% and pays an interest…

A: Given:ROE of firm =4.4%Debt to equity ratio=0.7Tax rate=35%Interest on debt =5%To compute:Operating…

Q: Winter's Toyland has a debt-equity ratio of 1.00. The cost of debt is 8 percent and the required…

A: given, Debt/Equity ratio = 1 cost of debt =8%

Q: What is Walkeshewar's WACC if it's equity costs 11.8 percent, the cost of it's debt is 6.3 percent,…

A: WACC (weighted average cost of capital) refers to the average cost that is paid by a company to…

Q: ANB ltd has common equity of $35.5mn and $31.9mn of long-term debt and $10.3mn of preferred equity…

A: The weighted average cost of capital is the rate at which a corporation is anticipated to compensate…

Q: Targaryen Corporation has a target capital structure of 75 percent common stock, 10 percent…

A: Given information: Cost of equity is 10%, Cost of preferred stock is 6%, Pre-tax cost of debt is 7%,…

Q: Skolits Corp. has a cost of equity of 11.8 percent and an aftertax cost of debt of 4.44 percent. The…

A: Weighted Average Cost of Capital is defined as financial metric, which used to help in the…

Q: Nike, Inc., has a debt-equity ratio of 2.3.  The firm's weighted average cost of capital is 10…

A: Debt to equity ratio is 2.3, therefore, debt to total value (D/V) = 2.3/(1+2.3) = 0.696969696969697.…

Q: Blue Co. is funded only by debt and equity with a weighted average cost of capital at 20%. The debt…

A: Weighted average cost of capital (WACC) = 20% Debt ratio = Weight of debt (Wd) = 20% or 0.2 Weight…

Q: Baron Corporation has a target capital structure of 60 percent common stock, 5 percent preferred…

A: Solution: Weighted Average Cost of Capital (WACC) is the minimum rate of return required by the…

Q: Marginal Incorporated (MI) has determined that its after-tax cost of debt is 5.0% for the first $62…

A: Capital Budget = $167 million To be financed through: Debt = 167*325/500 = 108.55 million Preferred…

Q: CoffeeCarts has a cost of equity of 15%, has a pre-tax cost of debt of 4%, and is financed 70% with…

A: Given details are : Cost of Equity (Ke) = 15% Pre tax cost of debt (Kd) = 4% Weight of Equity = 70%…

Q: Fusion Packaging is financed with 55% equity and 45% debt.  The required rate of return on its debt…

A: Weight of equity (We) = 55% Weight of debt (Wd) = 45% Cost of debt (Rd) = 4.4% Cost of equity (Re) =…

Q: ICU Window, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding…

A: Yield to maturity refers to the internal rate of return which is earned by the investor who makes…

Q: Fama's Llamas has a weighted average cost of capital of 9.5 percent. The company's cost of equity is…

A: Calculation of Target Debt-Equity Ratio:The target debt-equity ratio is 0.91.Excel Spreadsheet:

Q: Solar Industries has a debt-equity ratio of 1.5. Its WACC is 7.7 percent, and its cost of debt is…

A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…

Q: Summit Builders has a market debt-equity ratio of 0.25, a corporate tax rate of 40%, and pays 7%…

A: Weight of debt = Debt/ (Debt + equity) Weight of debt = 0.25/1.25 =20%

Q: Blitz Industries has a debt-equity ratio of 1.7. Its WACC is 8.1 percent, and its cost of debt is…

A: Data given : Debt-equity ratio = 1.7:1 WACC = 8.1% Cost of debt = 5.7% Corporate tax rate = 23%

Q: Irving Corp. has no debt but can borrow at 7.25 percent. The firm's WACC is currently 13 percent,…

A: When firm does not have debt, cost of equity = WACC.  Firm's cost of equity when it has 25% debt:…

Q: Lannister Manufacturing has a target debt-equity ratio of 0.66. Its cost of equity is 16 percent,…

A: Weighted average cost of capital can be calculated as: = (Weight of equity * Cost of equity) +…

Q: Planet Express has liabilities of $400 and assets of $1000. The average YTM on its debt is 10% and…

A: FORMULA FOR WACC: WACC=WP×KP+WD×KD×1-TAX WHERE, WD=weight of debtwp=weight of preferred sharekd=cost…

Q: Targaryen Corporation has a target capital structure of 60 percent common stock, 5 percent preferred…

A: given, wcommon stock = 0.6 wpreferred= 0.05 wdebt= 0.35 requity= 9% rpreferred= 7% rdebt= 8% tax =…

Q: Croft Corporation has a target capital structure of 85 percent common stock and 15 percent debt. Its…

A: WACC = Cost of debt * Weight of debt + Cost of equity * Weight of equity

Q: Suppose that TapDance, Inc.'s capital structure features 60 percent equity, 40 percent debt, and…

A: Equity ratio = 60% Debt ratio = 40% Cost of equity = 11% Before tax cost of debt = 6% Tax rate = 21%…

Q: Johansen Corporation has a target capital structure of 60 percent common stock and 40 percent debt.…

A: Calculation of WACC:The WACC is 8.88%.Excel Spreadsheet:

Q: Targaryen Corporation has a target capital structure of 65 percent common stock, 10 percent…

A: The weighted average cost of capital computes the weighted cost of sourcing funds from different…

Q: 1. Jorge Ricard, a fi nancial analyst, is estimating the costs of capital for the Zeale Corporation.…

A: Answer 1: Information Provided; Cost of debt = 4% Cost of equity = 6% Marginal Tax rate 20% 45%

Q: ICU Window, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding…

A: The question is based on the valuation of bond concept to find cost (yield) of bond.

Q: Precision Cuts has a target debt-equity ratio of .48. Its cost of equity is 16.4 percent, and its…

A: To calculate the WACC we will use the below formula   WACC = (Ke*We)+[Kd*(1-t)*Wd]   Where Ke - Cost…

Q: you were hired as a consultant to ABC Company, whose target capital structure is 35% debt, 15%…

A: The weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which…

Q: XYZ Inc. has a target capital structure of 60% equity and 40% debt. Its cost of equity is 9% and the…

A: WACC = Weight of equity * cost of equity + Weight of debt * cost of debt

Q: Fama's Llamas has a weighted average cost of capital of 10.4 percent. The company's cost of equity…

A: By using the formula of the weighted average cost of capital, the value of debt and equity can be…

Q: Butler, Inc., has a target debt-equity ratio of 1.60. Its WACC is 7.8 percent, and the tax rate is…

A: WACC = Post tax Cost of debt * Weight of debt + Cost of equity * Weight of equity

Q: Lannister Manufacturing has a target debt-equity ratio of .85. Its cost of equity is 10 percent, and…

A: Debt Equity ratio = .85 DebtEquity=.85 Debt = 0.85 x Equity   Calculate the weight for debt and…

Q: Lamas has a weighted average cost of capital of 8.4 percent. The company's equity is II percent, and…

A: The debt Equity ratio states how much debt the company has in its capital structure. Generally the…

Q: Croft Corporation has a target capital structure of 70 percent common stock and 30 percent debt. Its…

A: WACC = [Cost of debt x (1 - tax rate) x debt %] + (Cost of equity x Equity %)

Q: Lannister Manufacturing has a target debt-equity ratio of 85. Its cost of equity is 10 percent, and…

A: WACC or Weighted Average Cost of Capital - Usually a company gets capital from different sources,…

Q: Viserion, Incorporated, is trying to determine its cost of debt. The firm has a debt issue…

A: Coupon rate is 6% Coupon frequency is semi annual Price of bond is 106% Face value is $1000 Time…

Q: Suppose that TapDance, Inc.'s capital structure features 65 percent equity, 35 percent debt, and…

A: WACC = (Market weight of equity × Cost of equity) + (Market value of debt × post tax Cost of debt)

Q: wild flowers express has a debt equity ratio of .60. the pre tax cost of debt is 9% while the…

A: Computation of levered equity cost:Hence, the levered equity cost is 15.98%.

Q: Summit Builders has a market debt-equity ratio of 1.05 and a corporate tax rate of 21%, and it pays…

A: Excel Spreadsheet: Excel Workings:

Q: Sixx AM Manufacturing has a target debt-equity ratio of 0.65. its cost of equity is 15%, and its…

A: Weighted Average Cost of Capital (WACC) is the overall cost of capital from all the sources of…

Q: Viserion, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with…

A: Here; Annual coupon rate = 4% Par value = $1,000 Maturity = 16 years Tax rate = 25%   To Find:…

Q: Branson Manufacturing has a target debt-equity ratio of .55. Its cost of equity is 10 percent, and…

A: Given, The Target debt-equity ratio is 0.55 Cost of equity is 10%Pre-tax cost of debt is 6% Tax rate…