Gina Electronics Inc. has long-term bonds with a face value of $2M, the coupon rate on the bonds is 5% and the yield on the bonds is also 5%. The unlevered cost of equity is 12.5%, and the value of Sun's equity is $3.6M. The corporate tax rate is 40%. What is Gina's WACC?
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Gina Electronics Inc. has long-term bonds with a face value of $2M, the coupon rate on the bonds is 5% and the yield on the bonds is also 5%. The unlevered
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- b) Country Markets has an unlevered cost of capital of 12 percent, a tax rate of 38 percent, and expected earnings before interest and taxes of $15,700. The company has $12,000 in bonds outstanding that have a 6 percent coupon and pay interest annually. The bonds are selling at par value. What is the cost of equity?Country Markets has an unlevered cost of capital of 12 percent, a tax rate of 38 percent, and expected earnings before interest and taxes of $15,700. The company has $12,000 in bonds outstanding that have a 6 percent coupon and pay interest annually. The bonds are selling at par value. What is the cost of equity?The Outlet has an unlevered cost of capital of 14.2 percent, a tax rate of 35 percent, and expected earnings before interest and taxes of $23,400. The company has $23,000 in bonds outstanding that have a coupon rate of 7 percent. The bonds are selling at par. What is the cost of equity?
- he total book value of WTC’s equity is $7 million, and book value per share is $14. The stock has a market-to-book ratio of 1.5, and the cost of equity is 12%. The firm’s bonds have a face value of $4 million and sell at a price of 110% of face value. The yield to maturity on the bonds is 9%, and the firm’s tax rate is 21%. What is the company’s WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) WACC= ______%A&P Inc., the grocery store chain, has 6 million shares of common stock outstanding which currently trade for $40 per share. The company also has 150,000 bonds each with a face value of $1,000 and annual coupons of $50. The bonds have 6 years to maturity and the next coupon is due in one year. The yield on the bonds is 5%. The company's beta is 1.05, the risk-free rate is 3%, and the expected return on the market is 8%. The tax rate is 35%. What is A&P's WACC? Express your answer in percentage form rounded to two decimal places. WACC = ?%The Pizza Shoppe has debt with both a face and a market value of $3,000. This debt has a coupon rate of 7 percent and pays interest annually. The expected earnings before interest and taxes are $1,200, the tax rate is 34 percent, and the unlevered cost of capital is 12 percent. What is the firm's cost of equity?
- the winter wear company has expected earnings before interest and taxes of 2,100, and unlevered cost of capital of 14% and a tax rate of 34%. the company also has 2,800 of debt that carries a 7 percent coupon. the debt is selling at par value. what is the value of this firm?NU Inc. has 80 semi-annual bonds outstanding that are selling at $1,033 each. The coupon rate is 3%. The maturity is 25 years. The firm has 5,000 shares of common stock outstanding at a market price of $20 a share. The stock has a beta of 1.4. The U.S. T-bill is yielding 4 percent. The market risk premium is 8 percent. If the tax rate is 21 percent, what is the weighted average cost of capital, assuming all interest is tax deductibleThe market value of Charcoal Corporation's common stock is $20 million, and the market value of its risk-free debt is $5 million. The beta of the company's common stock is 1.25, and the market risk premium is 8 percent. If the Treasury bill rate is 5 percent, what is the company's cost of capital? (Assume no taxes.) 15.0 percent 14.6 percent 13.0 percent 7.0 percent
- Tell Corp. has a total book value of equity of $10 million and a book value per share of $20. The stock sells for a price of $30 per share, and the cost of equity is 15%. The firm's bonds have a par value of $5 million and sel at a price of 110% of par. The yield to maturity on the bonds is 9%, and the firms tax rate is 30%. What is the firms Weighted Average Cost of Capital? A. 11.91% B. 12.10% C. 12.67% D. 12.82 E. 13.30Kline Construction is an all-equity firm that has projected perpetual EBIT of $308,000. The current cost of equity is 12 percent and the tax rate is 34 percent. The company is in the process of issuing $924,000 worth of perpetual bonds with an annual coupon rate of 6.2 percent at par. What is the value of the levered firm?Mint Industries has a target debt-equity ratio of 0.60, a cost of equity of 10%, and one issue of bonds that are offering a yield to maturity of 7.67%. If Minder’s tax rate is 40%, what is the company’s WACC?