Pfd Company has debt with a yield to maturity of 8.1%, a cost of equity of 14.1%, and a cost of preferred stock of 9.1%. The market values of its debt, preferred stock, and equity are $9.6 million, $2.7 million, and $15.8 million, respectively, and its tax rate is 38%. What is this firm's after-tax WACC? Pfd's WACC is%. (Round to two decimal places.) (....
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- Pfd Company has debt with a yield to maturity of 7.4%, a cost of equity of 14.2%, and a cost of preferred stock of 9.4%. The market values of its debt, preferred stock, and equity are $11.5 million, $3.5 million, and $15.1 million, respectively, and its tax rate is 21%. What is this firm's after-tax WACC? Note: Assume that the firm will always be able to utilize its full interest tax shield. Pfd's WACC is __ % ? (Round to two decimal places.)Pfd Company has debt with a yield to maturity of 5.5 %, a cost of equity of 12.7 %, and a cost of preferred stock of 10.3 %. The market values of its debt, preferred stock, and equity are $ 10.3 million, $3.4 million, and $ 16.9 million, respectively, and its tax rate is 21%. What is this firm's after - tax WACC? Note: Assume that the firm will always be able to utilize its full interest tax shield.1. Pfd Company has debt with a yield to maturity of 7.8%, a cost of equity of 14.2%, and a cost of preferred stock of 9.1%. The market values of its debt, preferred stock, and equity are $14.5 million, $3.5 million, and $16.3 million, respectively, and its tax rate is 25%. What is this firm's after-tax WACC? Note: Assume that the firm will always be able to utilize its full interest tax shield. Pfd's WACC_____%. (Round to two decimal places.)
- Munding Corp. has debt with a market value of $23 million and equity with a market value of $45 million. Its pre-tax cost of debt is 5% and its cost of equity is 14%. The firm's marginal tax rate is 21%. 1. What is the company's weighted average cost of capital?Sixx AM Manufacturing has a target debt-equity ratio of 0.7. Its cost of equity is 17 percent, and its cost of debt is 11 percent. If the tax rate is 32 percent, what is the company's WACC?Lannister Manufacturing has a target debt-equity ratio of 0.62. Its cost of equity is 18 percent, and its cost of debt is 11 percent. If the tax rate is 33 percent, what is the company's WACC?
- Chamin, Inc. has earnings before interest and taxes (EBIT) of $375,000. Chamin has interest expense of $75,000; it must pay preferred dividends of $6,000 and it has a tax rate of 40 percent. Given a base EBIT level of $375,000, what is the firm's degree of financial leverage? Use the formula that includes the preferred dividends in the calculation.Nike, Inc., has a debt-equity ratio of 2.3. The firm's weighted average cost of capital is 10 percent and its pretax cost of debt is 6%. The tax rate is 24%. What would the company's weighted average cost of capital be if the firm's debt-equity ratio were .75 and 1.3?Bulldogs Inc., which has 20% income tax rate, is funded by debt and common equity. The equity ratio of the company is 70% while the weighted average cost of capital is 20.75%. The cost of equity, which is based on the readily available data, is calculated using cost of retained earnings at 12.50%. What is the cost of debt after the effect of tax shield? (In percentage, type the percentage sign on your answer)
- Bulldogs Inc., which has 20% income tax rate, is funded by debt and common equity. The equity ratio of the company is 70% while the weighted average cost of capital is 20.75%. The cost of equity, which is based on the readily available data, is calculated using cost of retained earnings at 12.50%. What is the cost of debt after the effect of tax shield?Nike, Inc., has a debt-equity ratio of 2.3. The firm's weighted average cost of capital is 10 percent and its pretax cost of debt is 6%. The tax rate is 24%. What is the company's unlevered cost of equity capital?Take It All Away has a cost of equity of 11.14 percent, a pretax cost of debt of 5.34 percent, and a tax rate of 21 percent. The company's capital structure consists of 66 percent debt on a book value basis, but debt is 32 percent of the company's value on a market value basis. What is the company's WACC?