Question
Below are the pertinent data of ABC Inc. Tax Rate 30% Cost of Debt (Before Tax) 8% Total Debt 350,000.000 Risk Free Rate (Equity) 2%
Below are the pertinent data of ABC Inc.
Tax Rate 30%
Cost of Debt (Before Tax) 8%
Total Debt 350,000.000
Risk Free Rate (Equity) 2%
Beta 1.20
Shares Outstanding 55,500 shares
Current Share Price 100.00
Market rate of return 8.5%
Compute for the following:
- Total Debt and Equity (Total Capital)
- Debt as % of Capital
- After Tax Cost of Debt
- Equity as % of Total Capital
- Cost of Equity
- Weighted Average Cost of Capital
Below are the pertinent data of ABC Inc.
Tax Rate 30%
Cost of Debt (Before Tax) 8%
Total Debt 350,000.000
Risk Free Rate (Equity) 2%
Beta 1.20
Shares Outstanding 55,500 shares
Current Share Price 100.00
Market rate of return 8.5%
Compute for the following:
- Total Debt and Equity (Total Capital)
- Debt as % of Capital
- After Tax Cost of Debt
- Equity as % of Total Capital
- Cost of Equity
- Weighted Average Cost of Capital
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Principles Of Investments
Authors: Alan Marcus, Zvi Bodie, Michael Drew, Anup Basu, Alex Kane
1st Edition
0071012389, 978-0071012386
