Given the followind data, please calculate Microsoft's tax effected WACC Enterprise Value $2,125 Billion Total Debt $325 Billion Debt Interest Rate 3% Market Cap $1,800 Billion Cost of Equity 6% Tax Rate 20%
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Given the followind data, please calculate Microsoft's tax effected WACC
| Enterprise Value | $2,125 Billion |
| Total Debt | $325 Billion |
| Debt Interest Rate | 3% |
| Market Cap | $1,800 Billion |
| 6% | |
| Tax Rate | 20% |
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- Brower Co. is considering the following alternative financing plans: Income tax is estimated at 40% of income. Determine the earnings per share of common stock, assuming that income before bond interest and income tax is 2,000,000.You are given the financial information for the Unic Company: Earnings Before Interest and Tax (EBIT) = $126.58 Corporate tax rate (TC) = 0.21 Debt (D) = $500 Unlevered cost of capital (RU) = 0.20 The cost of debt capital is 10 percent. Question: Determine the value of Unic Company equity? Determine the cost of equity capital for Unic Company? Determine the WACC for Unic Company?Company X has debt and equity as source of funds..Company X has market value of debt as $ 150000 and a book value of debt as $ 80000. The company has book value of equity as $ 100000 and market value of equity as $ 125000. The cost of debt is 8.25% and cost of equity is 9.57%. The tax rate is 38%. What is WACC?
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- Home depot entered fiscal 2017 with a total capitalization of $21,940 million. In 2017 debt investors received interest income of $889 million. Net income to shareholders was $8690 million (assume a tax rate of 21%) calculate the economic value added assuming its cost of capital is 10%Broward Manufacturing recently reported the following information:Net income $615,000ROA 10%Interest expense $202,950Accounts payable and accruals $950,000Broward’s tax rate is 30%. Broward finances with only debt and common equity, so it hasno preferred stock. 40% of its total invested capital is debt, and 60% of its total investedcapital is common equity. Calculate its basic earning power (BEP), its return on equity(ROE), and its return on invested capital (ROIC).Consider the following data for the firms Acme and Apex: Equity ($ million) Debt ($ million) ROC Cost of Capital Acme 290 145 17% 9% Apex 1,450 483 15% 10% a. Calculate the economic value added for Acme and Apex (round to 2 decimal places). Economic value added for Acme $? million Economic value added for Apex $? million b. Calculate the economic value added per dollar of invested capital for Acme and Apex (round to 2 decimal places)? Economic value added for Acme per dollar Economic value added for Apex per dollar
