Assume a firm has $45 million in operating profit. The firms tax rate is 40%. What is the tax shield of the firms $38 million in debt that charges a 10% interest rate?

Which of the following is TRUE regarding Company ABC given the following information? Current Assets = $250 Fixed Assets =$70 Current Liabilities = $110 Long term Debt = $90 Sales = $330 Net Income = $60

Shareholders Equity = $320

Current Ratio = 1.30

Asset turnover= 2.75

Debt to equity ratio= 0.80

Return on Equity = 45.0% Given the following, calculate WACC for company XYZ: Debt: $600 M Equity: $700 M Cost on Debt: 5.0% Cost on Equity: 11.0% Tax Rate: 40.0%