Business, 29.07.2019 19:10 ddllww369

Citee corp. has no debt but can borrow at 5.5 percent. the firm’s wacc is currently 9 percent, and the tax rate is 21 percent. a. what is the company’s cost of equity? (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.) b. if the firm converts to 40 percent debt, what will its cost of equity be? (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.) c. if the firm converts to 70 percent debt, what will its cost of equity be? (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.) d-1. if the firm converts to 40 percent debt, what is the company’s wacc? (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.) d-2. if the firm converts to 70 percent debt, what is the company’s wacc? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.)

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 20:30

According to the research in strategic human resources management,answers: firms that are able to use human resource practices to develop socially complex human and organizational resources are able to gain competitive advantage over firms that do not engage in these practices.firms that are able to use human resource practices to develop socially simplistic human and organizational resources are able to gain competitive advantage over firms that do not engage in these practices.firms that are able to use human resource practices to develop socially complex human and organizational resources gain little advantage over firms that do not engage in these practices.firms that are able to use human resource practices to develop socially complex human and organizational resources are at a competitive disadvantage when compared to firms that do not engage in these practices.

Answers: 3

Answer

Business, 22.06.2019 04:50

Neveready flashlights inc. needs $317,000 to take a cash discount of 3/15, net 70. a banker will loan the money for 55 days at an interest cost of $13,200. a. what is the effective rate on the bank loan? (use a 360-day year. do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.) b. how much would it cost (in percentage terms) if the firm did not take the cash discount but paid the bill in 70 days instead of 15 days? (use a 360-day year. do not round intermediate calculations. input your answer as a percent rounded to 2 decimal places.) c. should the firm borrow the money to take the discount? no yes d. if the banker requires a 20 percent compensating balance, how much must the firm borrow to end up with the $317,000? e-1. what would be the effective interest rate in part d if the interest charge for 55 days were $7,200?

Answers: 3

Answer

Business, 22.06.2019 08:50

Suppose that in an economy the structural unemployment rate is 2.2 percent, the natural unemployment rate is 5.3 percent, and the cyclical unemployment rate is 2 percent. the frictional unemployment rate is percent and the actual unemployment rate (in this economy) is percent.

Answers: 2

Answer

Business, 22.06.2019 17:00

You hold a diversified $100,000 portfolio consisting of 20 stocks with $5,000 invested in each. the portfolio's beta is 1.12. you plan to sell a stock with b = 0.90 and use the proceeds to buy a new stock with b = 1.50. what will the portfolio's new beta be? do not round your intermediate calculations.

Answers: 2

Answer

You know the right answer?

Citee corp. has no debt but can borrow at 5.5 percent. the firm’s wacc is currently 9 percent, and t...

Questions