The ABCCompany has a cost of equity of 21.2 percent, a pre-tax cost of debt of 5.2percent, and a tax rate of 30 percent. What is the firm’s weighted average costof capital if the proportion of debt is 65.6%?Note: Enter your answer rounded off to two decimal points.Do not enter % in the answer box. For example, if your answer is 0.12345 thenenter as 12.35 in the answer box.

Q: a. The​ after-tax cost of debt using the approximation formula is______​%.​(Round to two…

A: Here, To Find: Part A. The​ after-tax cost of debt using the approximation formula =? Part B. WACC…

Q: Design Interiors has a cost of equity of 14.9 percent and a pretax cost of debt of 8.6 percent. The…

A: Here, Cost of equity = 14.9% Pretax cost of debt = 8.6% Weighted average cost of capital of the firm…

Q: X company has an unlevered cost of capital of 11%,  a cost of debt of 8%, and a tax rte of 35%. What…

A: Debt-to-Equity ratio shows the proportion of debt capital including non-current liabilities and…

Q: A firm is financed with a mix of risk-free debt (currently valued at £800,000) and equity (which has…

A: Weighted average cost of capital is the average cost of capital that the firm incur for raising…

Q: Dillon Labs has asked its financial manager to measure the cost of each specific type of capital as…

A: WACC is the weighted average cost of capital. It is the overall cost of capital which is used for…

Q: Baron Corporation has a target capital structure of 60 percent common stock, 5 percent preferred…

A: Target Capital Structure = 60% stock, 5% preferred stock, 35% debt Cost of equity = 11% cot of…

Q: ANB ltd has common equity of $35.5mn and $31.9mn of long-term debt and $10.3mn of preferred equity…

A: The weighted average cost of capital is the rate at which a corporation is anticipated to compensate…

Q: Dillon Labs has asked its financial manager to measure the cost of each specific type of capital as…

A: (Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

Q: Salalah Mineral water has found that its cost of common equity capital is 18 percent, and its cost…

A: re=18%rd=8%we=60%wd=40%tax= 40%

Q: Suppose that B2B, Inc. has a capital structure of 35 percent equity, 16 percent preferred stock, and…

A: Calculation of WACC:The WACC is 9.59%.Excel Spreadsheet:

Q: Suppose that your firm has a cost of equity of 10%, cost of preferred stock of 8%, and an after-tax…

A: Weighted average cost of capital(WACC) is an average cost of capital which can be calculated by…

Q: Bulldogs Inc., which is funded by debt and ordinary equity, has a debt to equity ratio of 100%. The…

A: Answer) Calculation of Applicable Tax Rate Weighted Average Cost of Capital = [(Weightage of Equity…

Q: Fama's Llamas has a weighted average cost of capital of 9.5 percent. The company's cost of equity is…

A: Calculation of Target Debt-Equity Ratio:The target debt-equity ratio is 0.91.Excel Spreadsheet:

Q: rbitrary FirmName Ltd has a target debt-equity ratio of 1.20. Its weighted average cost of capital…

A: Weighted Average cost of capital is sum product of cost of each component in capital structure and…

Q: The​ after-tax cost of debt using the​ bond's yield to maturity​ (YTM) is _____​(Round to two…

A: The after tax cost of debt using the RATE function in excel: RATE = (NPER, PMT, PV, FV) where NPER =…

Q: Company A is financed by 20% of debt and the rest of the company is financed by common equity. The…

A: Given: Debt (% of capital structure) 20% Before-tax cost of debt 5% Cost of equity 11%…

Q: Suppose that TapDance, Inc.’s capital structure features 70 percent equity, 30 percent debt, and…

A: To calculate the WACC we will use the below formula   WACC = [Kd*(1-t)*Wd]+[Ke*We] Where Kd - Before…

Q: Salalah Mineral water has found that its cost of common equity capital is 18 percent, and its cost…

A: WACC = ∑Wi*KI W is weight and K is cost of component Post tax cost of debt is used for after tax…

Q: Suppose that TapDance, Inc.'s capital structure features 60 percent equity, 40 percent debt, and…

A: Equity ratio = 60% Debt ratio = 40% Cost of equity = 11% Before tax cost of debt = 6% Tax rate = 21%…

Q: Using the WACC in practice: Maloney’s, Inc., has found that its cost of common equity capital is 17…

A: Weighted Average Cost of Capital (WACC) is the overall cost of capital from all the sources of…

Q: 1. Jorge Ricard, a fi nancial analyst, is estimating the costs of capital for the Zeale Corporation.…

A: Answer 1: Information Provided; Cost of debt = 4% Cost of equity = 6% Marginal Tax rate 20% 45%

Q: you were hired as a consultant to ABC Company, whose target capital structure is 35% debt, 15%…

A: The weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which…

Q: Nike, Inc., has a debt-equity ratio of 2.3.  The firm's weighted average cost of capital is 10…

A: Debt-equity ratio is 2.3. The debt can be expressed as:

Q: XYZ Inc. has a target capital structure of 60% equity and 40% debt. Its cost of equity is 9% and the…

A: WACC = Weight of equity * cost of equity + Weight of debt * cost of debt

Q: P&G has the following capital structure: $2 million in debt, $5 million in preferred stock and…

A: Here, Value of the firm is 'V' Debt is 'D' Preferred stock is 'P' Equity is 'E'

Q: Fama's Llamas has a weighted average cost of capital of 9.7 percent. The company's cost of equity is…

A:

Q: Nike, Inc., has a debt-equity ratio of 2.3.  The firm's weighted average cost of capital is 10…

A: Unlevered cost of equity is the cost of raising a capital for the firm which is completely funded by…

Q: You are given the market values of CHAR’s capital structure as follow: $52 million in total common…

A: Total Market value of capital structure = total common equity + debt + preferred stock = 52 + 20 + 8…

Q: Assume that a firm has a cost of debt capital of 0.06, a company tax rate of 0.2, a market value of…

A: Weight average cost of capital = ∑weight of component*cost of component cost for the debt component…

Q: what is the weighted average cost of capital?

A: Information Provided: Cost of equity = 12.8% YTM on bonds = 5.3% Tax rate = 35% Debt-Equity ratio =…

Q: rage cost of capital. The weighted average cost is to be measured by using the following​ weights:…

A: Cost of debt is yield to maturity of the stock and after tax cost can be reduced for tax purpose.

Q: The ABC Company has a cost of equity of 21.2 percent, a pre-tax cost of debt of 5.2 percent, and a…

A: wacc=wd×rd×1-tax+we×rewhere,wd=weight of debtrd=cost of debtwe=weight of equityre=cost of equity

Q: Salalah Mineral water has found that its cost of common equity capital is 18 percent and its cost of…

A: WACC is the cost of capital for the firm.

Q: Majan Mining has found that its cost of common equity capital is 17 percent and its cost of debt…

A: WACC = Weight of equity * Cost of equity + weight of debt * cost of debt*(1-tax)

Q: The cost of retained earnings is ____​(Round to two decimal​ places.) The cost of new common stock…

A: Cost of retained earnings = D1/P0 + g Cost of new common stock = D1/(P0-F) + g WACC using common…