4G 2.30 4G1 ( 10 4G i 11:3 VA KB/s = 3 SCRIBD Search Q 11. With risk-free rate of 5%, Beta of 1.5, market return of 8%, prevailing credit spread of 3%, tax rate of 30% and Equity ratio of 30%, compute for the weighted average cost of capital. a. 6.00% b. 6.77% c. 7.00% d. 7.77% 12. With risk-free rate of 6%, Beta of 1.5, market return of 8%, prevailing credit spread of 3%, tax rate of 30% and Equity ratio of 30%, Using CAPM method compute for the cost of equity. 100 VALUATION CONCEPTS AND METHODOLOGIES а. 9.00% b. 6.77% C. 8.00% d. 8.77% 13. The appropriate WACC of a firm is 6.43%. With risk-free rate of 4%, market return of 8%, prevailing credit spread of 3%, tax rate of 30% and Equity ratio of 30%, compute for the volatility of stocks or Beta. а. 1.00 b. 1.25 C. 1.50 d. 1.75 14. The appropriate WACC of a firm is 6.43%. With risk-free rate of 4%, market return of 8%, prevailing credit spread of 3%, tax rate of 30% and Equity ratio of 30%, compute for the after tax cost of debt. a. 4.90% b. 5.00% C. 7.00% d. 10.00% 15. SPPE Corp. is planning to expand and new projects is expecting to earn an average of Php375,000 annually. If the project requires for Php5,000,000 investment at 10% cost of capital. Compute for the Economic Value Added. a. Php 125,000.00 b. (Php 125,000.00) c. Php 875,000.00 d. (Php 875,000.00) 16. SLAC Corp. is plannina to expand and new proiects is expecting to Home Вooks Audiobooks Documents II

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

11,12,13,14 and 15 please

4G
2.30 4G1 ( 10
4G
i 11:3
VA
KB/s
= 3 SCRIBD
Search
Q
11. With risk-free rate of 5%, Beta of 1.5, market return of 8%, prevailing
credit spread of 3%, tax rate of 30% and Equity ratio of 30%,
compute for the weighted average cost of capital.
a. 6.00%
b. 6.77%
c. 7.00%
d. 7.77%
12. With risk-free rate of 6%, Beta of 1.5, market return of 8%, prevailing
credit spread of 3%, tax rate of 30% and Equity ratio of 30%, Using
CAPM method compute for the cost of equity.
100
VALUATION CONCEPTS AND METHODOLOGIES
а. 9.00%
b. 6.77%
C. 8.00%
d. 8.77%
13. The appropriate WACC of a firm is 6.43%. With risk-free rate of 4%,
market return of 8%, prevailing credit spread of 3%, tax rate of 30%
and Equity ratio of 30%, compute for the volatility of stocks or Beta.
а. 1.00
b. 1.25
C. 1.50
d. 1.75
14. The appropriate WACC of a firm is 6.43%. With risk-free rate of 4%,
market return of 8%, prevailing credit spread of 3%, tax rate of 30%
and Equity ratio of 30%, compute for the after tax cost of debt.
a. 4.90%
b. 5.00%
C. 7.00%
d. 10.00%
15. SPPE Corp. is planning to expand and new projects is expecting to
earn an average of Php375,000 annually. If the project requires for
Php5,000,000 investment at 10% cost of capital. Compute for the
Economic Value Added.
a. Php 125,000.00
b. (Php 125,000.00)
c. Php 875,000.00
d. (Php 875,000.00)
16. SLAC Corp. is plannina to expand and new proiects is expecting to
Home
Вooks
Audiobooks
Documents
II
Transcribed Image Text:4G 2.30 4G1 ( 10 4G i 11:3 VA KB/s = 3 SCRIBD Search Q 11. With risk-free rate of 5%, Beta of 1.5, market return of 8%, prevailing credit spread of 3%, tax rate of 30% and Equity ratio of 30%, compute for the weighted average cost of capital. a. 6.00% b. 6.77% c. 7.00% d. 7.77% 12. With risk-free rate of 6%, Beta of 1.5, market return of 8%, prevailing credit spread of 3%, tax rate of 30% and Equity ratio of 30%, Using CAPM method compute for the cost of equity. 100 VALUATION CONCEPTS AND METHODOLOGIES а. 9.00% b. 6.77% C. 8.00% d. 8.77% 13. The appropriate WACC of a firm is 6.43%. With risk-free rate of 4%, market return of 8%, prevailing credit spread of 3%, tax rate of 30% and Equity ratio of 30%, compute for the volatility of stocks or Beta. а. 1.00 b. 1.25 C. 1.50 d. 1.75 14. The appropriate WACC of a firm is 6.43%. With risk-free rate of 4%, market return of 8%, prevailing credit spread of 3%, tax rate of 30% and Equity ratio of 30%, compute for the after tax cost of debt. a. 4.90% b. 5.00% C. 7.00% d. 10.00% 15. SPPE Corp. is planning to expand and new projects is expecting to earn an average of Php375,000 annually. If the project requires for Php5,000,000 investment at 10% cost of capital. Compute for the Economic Value Added. a. Php 125,000.00 b. (Php 125,000.00) c. Php 875,000.00 d. (Php 875,000.00) 16. SLAC Corp. is plannina to expand and new proiects is expecting to Home Вooks Audiobooks Documents II
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Present Value
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education