National Co.'s capital structure consists of 30% long-term liabilities, 30% preferred stock, and 40% common stock. The cost of capital for each component is shown below. Long-term liabilities Preferred stock Common stock 5% 5% 10% I-----------------
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What is the company’s after-tax weighted average cost of capital if National Co. pays 25% taxes?
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- Blazingame Inc.'s capital components have the following market values. Debt$34,030,000Preferred Stock16,500,000Common equity47,860,000 Calculate the firm's capital structure and show the weights that would be used for a weighted average cost of capital (WACC) computation. Round the values to the nearest dollar and the weights to three decimal places of percentage. Debt$ fill in the blank 1 Values Weights Debt $ _____ Preferred Stock ____ _____ Common Equity ____ _____ $ _____ _____The company’s capital structure is as follows: Debt Weight 25%, Preferred Stock Weight 25%, Common equity Weight 50%. The cost of debt is 12%, the cost of preferred stock is 15% and the cost of common equity is 0.244. Calculate the company’s weighted average cost of capital.The company’s capital structure is as follows: Debt Weight 25%, Preferred Stock Weight 25%, Common equity Weight 50%. The cost of debt is 12%, the cost of preferred stock is 15% and the cost of common equity is 18%. Calculate the company’s weighted average cost of capital.Select one:a. 15.75%b. 35.75%c. None of the optionsd. 25.75%e. 55.75%
- The company capital structure consists of debt 250000 at 0.071, preferred stock 230000 at 11% and common stock 120000 at 14%, calculate company’s weighted average cost of capitalThe company’s capital structure is as follows: Debt Weight 25%, Preferred Stock Weight 25%, Common equity Weight 50%. The cost of debt is 12%, the cost of preferred stock is 15% and the cost of common equity is 0.218. Calculate the company’s weighted average cost of capital. اخترأحد الخيارات a. 0.1390 b. All the given choices are not correct c. 0.1465 d. 0.0790 e. 0.1765Huntington Power Co. has issued following three securities as its long-term source of capital. Calculate the weights of each source of capital (kd, kp, ke). Debt: 2,500 bonds outstanding, current market price of the bond is $1,080. Preferred Stock: 3,000 shares outstanding, selling for $98. Common Stock: 60,000 shares outstanding, selling for $55 per share.
- Polinezo Industries' balance sheet reflects an equity of $650 million, the stock price is $90 per share, and its aggregate market value (MVA) is $60 million. Determine the common stock outstanding.The company’s capital structure is as follows: Debt Weight 25%, Preferred Stock Weight 25%, Common equity Weight 50%. The cost of debt is 12%, the cost of preferred stock is 15% and the cost of common equity is 0.208. Calculate the company’s weighted average cost of capital. Select one: a. 0.1415 b. 0.0740 c. 0.1715 d. 0.1340 e. All the given choices are not correctAssume the capital structure of XYZ Company: Bonds payable, 10% . . . . . . . 500,000 Preferred stock, 8%, P100 par . . . . . . . . 100,000 Common stock, 100,000 shares. . . . . . . 400,000 Other data shows as follows: Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . 800,000 Variable costs. . . . . . . . . . . . . . . . . . . . . . 362,500 Fixed Operating costs. . . . .. . . . . . . . . . . 187,500 Income tax rate . . . . . . . . . . . . . . . 30% Dividend growth rate . . . . . . . . . . . . . . . . 2% Required: Compute the following: Net Income available to Common DOL DFL DTL
- The company’s capital structure is as follows: Debt Weight 25%, Preferred Stock Weight 25%, Common equity Weight 50%. The cost of debt is 12%, the cost of preferred stock is 15% and the cost of common equity is 0.216. Calculate the company’s weighted average cost of capital. Select one: a. All the given choices are not correct b. 0.0780 c. 0.1380 d. 0.1455 e. 0.1755Calculate the weighted average cost of capital (WACC) of company ABC Inc., if: I. The company’s current capital structure consists of 35% from a long-term corporate bond, 30% from new common stock to be issued in the coming months, 20% from retained earnings and the rest is financed by a bank loan. The corporate tax rate is 35%. II. The company’s cost of debt from the bond issuance is 9% and from the bank loan is 8%. III. The current stock price of common stock is €10, the current dividend (Do) is €0.80 per share and dividends are expected to grow by 2% per year. New common stock flotation costs stand at 3% of the current stock price.Huntington Power Co. has issued following three securities as its long-term source of capital. Calculate the weights of each source of capital (kd, kp, ke). Debt: 2,500 bonds outstanding, current market price of the bond is $1,080. Preferred Stock: 3,000 shares outstanding, selling for $98. Common Stock: 60,000 shares outstanding, selling for $55 per share. a. 42.90%; 4.67%; 52.43% b. 45.63%; 1.72%; 59.67% c. 42.90%; 4.67%; 55.71% d. 59.67%; 5.08%; 35.24% e. 45.63%; 1.72%; 52.65% f. 42.90%; 2.23%; 52.14%
