Question
1. The capital structure (Wd, Wpfd, and We) of Tucker Company is 40%, 20%, and 40%, and the cost of the bonds, preferred stock, and
1. The capital structure (Wd, Wpfd, and We) of Tucker Company is 40%, 20%, and 40%, and the cost of the bonds, preferred stock, and common stock (Kd, Kpfd, and Ke) is 8%, 5%, and 12%. Calculate the Weighted Average Cost of Capital (WACC). Use a 35% corporate tax rate for the sixteen problems.
2. The capital structure weights of XYZ company are 15%, 25%, and 60%. The costs are 5.00%, 4.50%, and 14.00%. Calculate the WACC for the company.
3. The capital structure weights of Bozo company are 20%, 0%, 80%. The costs are 6%, 0%, and 12%. Calculate the WACC for the company.
4. The capital structure weights of Zebra Company are 25%, 25%, and 50%. The costs are 3%, 4%, and 10%. Calculate the WACC for the company.
5. The capital structure weights of Lion Corporation are 15%, 15%, and 70%. The costs are 6%, 3%, and 9%. Calculate the WACC for the company.
6. The capital structure weights of Bear Corporation are 40%, 10%, and 50%. The costs are 5.50%, 4.50%, and 10%. Calculate the WACC for the company.
7. The capital structure weights of Bull Corporation are 20%, 0%, and 80%. The costs are 4%, 0%, and 10%. Calculate the WACC for the company.
8. The capital structure weights of Zebra Corporation are 20%, 20%, and 60%. The costs are 5%, 3%, and 9%. Calculate the WACC for the company.
9. The capital structure weights of ABC company are 15%, 15%, and 70%. The costs are 4.00%, 3.50%, and 11.00%. Calculate the WACC for the company.
10. The capital structure weights of Clown company are 30%, 0%, 70%. The costs are 5%, 0%, and 12%. Calculate the WACC for the company.
11. The capital structure weights of Stripes Company are 20%, 30%, and 50%. The costs are 3%, 4%, and 10%. Calculate the WACC for the company.
12. The capital structure weights of Tiger Corporation are 18%, 12%, and 70%. The costs are 5.50%, 3.50%, and 12%. Calculate the WACC for the company.
13. The capital structure weights of Cub Corporation are 45%, 10%, and 45%. The costs are 4.50%, 5.00%, and 13%. Calculate the WACC for the company.
14. The capital structure weights of Horn Corporation are 20%, 0%, and 80%. The costs are 4%, 0%, and 12%. Calculate the WACC for the company.
15. The capital structure weights of Rhino Corporation are 25%, 10%, and 65%. The costs are 6.50%, 5%, and 10%. Calculate the WACC for the company.
16. The capital structure weights of 123 company are 25%, 5%, and 70%. The costs are 4.00%, 5.50%, and 14.00%. Calculate the WACC for the company.
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