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please answer, due soon! this is 1 question The calcilation of WACC involves calculeting the weighted average of the required rates of return on debt,
please answer, due soon! this is 1 question
The calcilation of WACC involves calculeting the weighted average of the required rates of return on debt, praferred stock, and comimon equity, where the weights equal the percentage of esch type of financing in the firm's overall capital structure. is the symbol that represents the cost of roising capital through retained earnings in the weighted average cost of capital (Wacc) equation. Wrie co, has 51.4 million of debt, 53 milion of preferred atock, and 31.0 milition of common equity, What would be its waight on onterred stock? 0.23 0.51 b. 45 0.43 The beforetax cost of debt - is the interest rate that a firm pays on any new debt financing. Andelution Limited (AL) can borrow funds at an interest rate of 10.20% for a period of six years. Its marginal federal-plus-state tax rate is 25%. AL's after-tak cost of debt is (rounded to two decimal pioces). At the pretent time, Andelusian Limited (AL) has 15 -year noncallable bonds with a face value of $1,000 that are outstanding. These bonds have a curtent market price of $1,136.50 per bond, camy a coupon rate of 12%, and distribute annusi coupon payments. The company incurs a federal-plusstete tax rote of 25%. If AL wante to lssue new debt, What would be a reasonable estimote for its after-tax cost of debt (rounded to two decimal pioces)? (Note: Round your vTM rate to two decimal place.) 6.1154 7.64% D.79m Step by Step Solution
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