FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The weight of equity in the capital structure is 100% for company XYZ. The after-tax cost of debt is 10%. The corporate tax rate is

The weight of equity in the capital structure is 100% for company XYZ. The after-tax cost of debt is 10%. The corporate tax rate is 21 percent. What is the weighted average cost of capital if the cost of equity is 15%? (round your answer to two decimal places)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Foundations In Personal Finance

Foundations In Personal Finance

Authors: Dave Ramsey

3rd Edition

1936948524, 978-1936948529

More Books

Students also viewed these Finance questions

Question

★★★★★
A Gaussian surface in the shape of a right circular cylinder with end caps has a radius of 12.0 cm and a length of 80.0 cm. Through one end there is an inward magnetic flux of 25.0 Wb. At the other...

Answered: 1 week ago

Question

★★★★★
A sphere (k = 185 W/m K, = 7.25 x 105 m2/s) of 30-mm diameter whose surface is diffuse and gray with an emissivity of 0.8 is placed in a large oven whose walls are of uniform temperature at 600 K....

Answered: 1 week ago

Question

★★★★★
Using the Body Fat data set with training set bodyfat-tr.xlsx and validation set bodyfat-val.xlsx (a) fit a simple linear regression model relating percent body fat (PCTBF) to wrist circumference...

Answered: 1 week ago

Question

★★★★★
Which of the four examples of conflict resolution is the best example, in your opinion, of effective resolution? Why?

Answered: 1 week ago

Question

★★★★★
Q15 (3 points). Lovarno Inc's EPS for the current year is expected to be $6.45. Last year, the company's EPS was $5.20, and it paid 20% of its earnings as dividends. The company's target payout ratio...

Answered: 1 week ago

Question

★★★★★
! Required information The Foundational 15 (Algo) [LO14-1, LO14-2, LO14-3, LO14-5, LO14-6] [The following information applies to the questions displayed below.] Cardinal Company is considering a...

Answered: 1 week ago

Question

★★★★★
Why don't we use y (gama) rays to study the interior of the objects, instead of using x-rays? Because similar to x-rays, y-rays are also not deflected by the electric and magnetic fields and also...

Answered: 1 week ago

Question

★★★★★
Can external sound vibrations be manipulated to induce sensations within the body?

Answered: 1 week ago

Question

★★★★★
According to the predictions of quantum mechanics, could atomic clocks also have errors, and there would be no instrument at all to point out the errors, still due to quantum mechanical limitations?

Answered: 1 week ago

Question

★★★★★
250 mL of a waste solution obtained from the workshop of a goldsmith contains 0.1 M AgNO 3 and 0.1M AuCl . The solution was electrolyzed at 2V by passing current of 1A for 15 min .The metal/metals...

Answered: 1 week ago

Question

★★★★★
If you have two vibrating tuning forks that create a binaural beat of 440 Hz, would they be able to make a third tuning fork calibrated to 440 Hz resonate?

Answered: 1 week ago

Question

★★★★★
=+8. Determine what the brand's positioning is. Do you want consumers to say it's safe, cool, fun, reliable, etc.? (WHAT IS THE BRAND KNOWN FOR?)

Answered: 1 week ago

Question

★★★★★
=+7. What is the big message you want them to know?

Answered: 1 week ago

Question

★★★★★
=+c. Geographics Explores where (location and kind of setting: urban, suburban, rural) audience lives.

Answered: 1 week ago

Previous Question Next Question