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- Define each of the following terms: Weighted average cost of capital, WACC; after-tax cost of debt, rd(1 – T); after-tax cost of short-term debt, rstd(1 – T) Cost of preferred stock, rps; cost of common equity (or cost of common stock), rs Target capital structure Flotation cost, F; cost of new external common equity, reIn question C there is a plot of of cost of debt, cost of equity and cost of capital. Can you show how r_a is calculated to be 0.18667? r_d = Cost of debt r_a = cost of capital r_e = Cost of equityA. Calculate the Weights for debt, common equity, and preferred equity. (round final answers to 4 decimal places) Debt: Preferred Equity: Common Equity: B. Calculate the cost of debt % C. Calculate the cost of preferred equity % D. calculate the cost of common equity % E. What is the firms weighted average cost of capital (WACC)%
- (part A is correct, I just need help with B, C, D, and E) A. Calculate the Weights for debt, common equity, and preferred equity. (round final answers to 4 decimal places) Debt: 0.4 (correct) Preferred Equity: 0.04 (correct) Common Equity: 0.56 (correct) B. Calculate the cost of debt % C. Calculate the cost of preferred equity % D. calculate the cost of common equity % E. What is the firms weighted average cost of capital (WACC)%Which of the following ratios is most useful in evaluating liquidity? ed d out of g ion • A. Return on assets. O B. Debt to equity ratio. C. Return on equity/capital O D. Current ratio.you have been provided with the following data D1=$1.27 PO=60 and G=8 constant. What is the cost of equity from retained earnings based on the DCF approach?
- NPAT Less prefernce dividend is used in O a. Return on Equity O b. Return on Equity share capital О с. Return on Capital Employed O d. Debt service ratioQ: Choose all that apply: The following ratios may be impacted by the adoption of the new standard: A. Revenue growth B. Net margin C. Return on equity D. Price to earnings multiples E. Return on assets F. Debt to equity G. Current ratio The Question is: Why "Debt to equity" and "Current ratios" may be impacted?1. What is the debt ratio for CS1? 2. What is the debt ratio for CS2? 3. The levered beta for CS2 is 4. The levered beta for CS3 is 5. What is the Cost of Equity for CS2?
- a) return on equity b) return on assests c) return on capitalUse this problem to answer numbers 1 to 3. (1) If the cost of equity were 12%, then the weighted average cost of capital under Arrangement #1, to the nearest full percentage point, would beCalculate the Weighted Average Cost of Capital (WACC) Cost of Equity = 11.02% Cost of Debt = 5.35% Debt-to-Equity Ratio = 15.52%