Debt/Assets Equity/Assets Debt/Equity B-T Cost of RRatio (D/E) Dpebt (ka) RRatio (wa) RRatio (w.) 8.00% 00,25 0.67 08.2 00.8 00.6 1010.00% 0014 |f50 44.00 142.00% 115.00% 00:4 00.6 00.8 The company estimates that the risk-free rate is 5%, the market risk premium is 6%, and its tax rate is 40%. It estimates that if it had no debt, its beta, would be 1.2. Based on the information, what is the firm's optimal capital structure, and what would the WACC be at the optimal capital structure? 002 Wacc BL rs

Q: Debentures 1, 50, Equity Capital 2, 00, General Reserve 90, Accumulated profit 60, What Is debt…

A: Formula to Calcualte Debt Equity Ratio: Debt Equity Ratio = Long Term Debt / Shareholders equity…

Q: Question 7 Given are the following data: Cost of debt ro 6%; Cost of equity re 12.1%; Marginal tax…

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Q: Calculate working capital Alist of XYZ Company accounits is presented belov in alphabetical order:…

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Q: Q 04: Required: Calculate the value of Firm and WACC forthe following capitalstructures EBIT of…

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Q: 18. TSE has an equity multiplier of 1.88, and its assets are financed with some combinations of…

A: Equity multiplier = 1.88

Q: Original Cost of Investment Selling Price of Investment Distributions Investment Received Dollar…

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Q: Return on Capital Employed (ROCE) =   For Riccarton PLC: ROCE = 50000/380000 X 100 = 13.2%…

A: The question is related to Ratio Analysis. The details are given regarding two companies.

Q: Finance From the information below, select the capital structure that results in the lowest WACC for…

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Q: If the company’s Interest on Debt is OMR 50,000 with 10% interest rate, the market value of Equity…

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Q: Calculate WACC from following data. Risk free rate 1.63% total debt $78.93 billion Market Cap…

A:

Q: If the cost of equity is 15%, value of equity is OMR 300,000, cost of debt after tax is 10% and…

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Q: i. Debt-to-equity ratio 2021 : 0.74 2020 : 1.12 ii. Net profit margin 2021 : 34.58% 2020 : 36.25%…

A: Ratio analysis is very important technique of management accounting. Under this, various type of…

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Q: On the basis of this information, NUBD's weighted-average cost of capital is: (round-off to 2…

A: Given: Interest rate = 8% Cost of equity =12% Tax = 30% Market value of equity =P80 Million Market…

Q: The following information relates to the X Division of NUBD Co: Interest rate on debt capital: 8%…

A: After tax cost of debt = Pretax cost of debt * (1 - tax rate) = 8% * (1-30%) =0.056 = 5.6%

Q: Cost of Equity Debt ROC Сapital (4) ($ million) ($ million) (4) Acme 250 125 17 Apex 1,250 417 154…

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Q: 20.00% 0.00% -20.00% -40.00% -60.00% -80.00% -100.00 % Equity Capital Stock additional paid-in…

A: Interpretation is the activity which is done in order to evaluate the financial statements so that…

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A: WACC = We*Ke+Wd*Kd W is weight K is cost e is equity and d is debt

Q: Company X has debt and equity as sources of funds. Company X has market value of debt as $150,000…

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Q: Delta GMBH’s ROE is 8.9 percent. Sales are $2,956,000.00. Total debt ratio is 0.3743. Total debt is…

A: The ROA cane be calculated as per the DuPont Equation.

Q: 2019: Profit Margin – Profit $1435 / Net Sales $38,464 = 0.037:1 OR 3.7% Working Capital – Current…

A:

Q: Assets Liabilities Stockholders' Equity (b) $177,000 $70,000 %24

A: Formula: Accounting equation: Assets = Liabilities + Stock holders equity

Q: The company capital structure consists of debt 250000 at 0.076, preferred stock 230000 at 11% and…

A: The cost of capital is the sum of the cost of capital from all the sources of finance. The weighted…

Q: Question 14 Your company has compiled the folowing data which is based on cument costs reiative to…

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Q: f the company’s EBIT is OMR 500,000; market value of the equity is OMR 2,000,000 and value of Debt…

A: Market value of equit + Debt  = EBIT / Cost of capital

Q: Choose the correct letter of answer A firm has current liabilities and current ratio are P5,000.00…

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Q: Assume the following data for U&P Company: Debt (D) = $100 million; Equity (E) = $300 million; rD =…

A: Debt (D) = $100 million Equity (E) = $300 million Total capital = $400 million (i.e. $100 million +…

Q: . Explain what is meant by: a. Cost of debt b. Cost of preferred stock C. Cost of equity

A: Cost of Debt: It refers to the effective rate of return paid by the company on its debt like bonds,…

Q: A company has a 10% ROA. Assume that a company’s total assets equal total investedcapital, and that…

A: Introduction: ROIC is the percentage amount that a corporation is creating for every single…

Q: 9% Preference Shares 4,00,000 Reserve and Surplus 2,00,000 Surplus i.e., Balance in Statement of…

A: solution mathematically return on capital employed =EBIT / capital employed Given EBIT       =…

Q: If the company’s Earnings before interest and taxes (EBIT) is OMR 500,000, the weighted average cost…

A: Market value of firm under net income approach  = EBIT /Cost of capital SO, EBIT  = Market value *…

Q: Item Value Item full name abbreviation OFCF (millions) $5 3% pa 2% pa 8.6% pa 40% pa Operating free…

A: Value of firm is calculated by concept present value of perpetual growth model.

Q: Distributions Original Cost of Investment Selling Price of Investment Received Dollar Profit (Loss)…

A: The question is based on the concept of calculation of dollar return from different investment…

Q: Cost Fair Value Unrealized Gain (Loss) Trading securities $95,000 $83,500 $(11,500)…

A: 1. Trading Securities  Particular  Debit Credit  Trading Securities market value adjustment…

Q: . A 0.50 (50%) debt-equity ratio would suggest that a firm has: a. 50% of its assets financed with…

A: Debt to equity ratio is helpful in identifying the proportion of debt used by the company to finance…

Q: Total assets = $900, fixed assets = $600, long-term debt = $500, and short-term debt = $200. Total…

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Q: Wd-20%, Wc= 80% Cost of debt (rd)= 12% wwwww Tax rate= 30% bL=1.2 Plan Alpha 20% debt & 80% equity…

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Q: Company X has debt and equity as source of funds..Company X has market value of debt as $ 150000 and…

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A: P/E ratio is most widely used for valuation of stock and good for comparison with other companies.

Q: Company has return on assets 12.4% and debt-equity ratio is 0.25. What is ROE? Select one: a.35.43%…

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Q: Financials of X Ltd are as follows. 10% Debt 6500; Current Market Price 80.21; Equity Beta 1.25;…

A: The market value added (MVA) is calculated as market value of capital less book value of capital.

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A: The question is based on the concept of Financial Management.

Q: Samuel Corp. provides the following information: EBIT = $386.50 Tax (TC ) = 21% Debt = $700 RU =…

A: EBIT = $386.50Tax (TC ) = 21%Debt = $700RU = 10%

Q: Calculate the WACC using the following informatio: Debt-Equity ratio is 50%. Cost of debt is 8.00%…

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