AllCity, Inc., is financed 37% with​ debt, 11% with preferred​ stock, and 52% with common stock. Its pretax cost of debt is 6.3%​, its preferred stock pays an annual dividend of $2.46 and is priced at $35. It has an equity beta of 1.19. Assume the​ risk-free rate is 1.9%​, the market risk premium is 6.9% and​ AllCity's tax rate is 25%. What is its​ after-tax WACC? ​Note: Assume that the firm will always be able to utilize its full interest tax shield

XYZ Corp. has bonds outstanding with a coupon rate of 2% and a YTM of 5.7%. The risk - free rate of return is 2.2% and the market is returning 10.0%. The stock has a beta of 0.9 and the firm is financed with 45% debt and 55% equity. If the tax rate is 24%, what is XYZ's WACC?

Ganado and Equity Risk Premiums. Maria Gonzalez, Ganado's Chief Financial Officer, estimates the risk-free rate to be 3.20%, the company's credit risk premium is 4.50%, the domestic beta is estimated at 1.01, the international beta is estimated at 0.75, and the company's capital structure is now 40% debt. The before-tax cost of debt estimated by observing the current yield on Ganado's outstanding bonds combined with bank debt is 7.90% and the company's effective tax rate is 42%. Calculate both the CAPM and ICAPM weighted average costs of capital for the following equity risk premium estimates. a. 8.70% b. 7.80% c. 6.00% d. 5.10% W

A company just paid $1.23 in dividends per share, and it has a dividend payout of 38%. Considering that the PE ratio is 8 times, determine the price of this company’s individual stocks. d. If the coupon rate of a bond is 3.05% and the yield to maturity is 6.48%, and if a bondholder has a marginal tax rate of 21%, determine their after tax yield in this case.

What is the WACC for Snuggly Baby Corp. if the tax rate is 25.00% and the firm has 6,182,000.00 shares of common equity priced at $14.00 each with an expected return of 19.74% and an expected real return of 14.61%; 1,001,000.00 shares of preferred equity priced at $32.00 each with an expected return of 16.14% and an expected real return of 11.16%; and 78,600.00 bonds that are priced at $923.00 each, and have a current yield of 11.22%, a yield-to-maturity of 11.63%, and a coupon rate of 10.38%?(Round the value to 100th decimal)

A firm's stock has a beta of 1.75, Treasury bills yield 3.8%, and the market portfolio offers an expected return of 9.5%. In addition to equity, the firm finances 26% of its assets with debt that has a yield to maturity of 7.4%. The firm is in the 28% marginal tax bracket. What is the company’s after tax cost of debt?

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Orion is financed with 26% debt and the rest equity. Orion has an equity beta of 1.2​, a debt beta of 0 and a marginal tax rate of 26%.If Orion issues debt to repurchase equity so that the new firm is now 52​% ​debt, what will be its new equity​ beta? ​ (Continue to assume the debt beta remains at​ 0.)

Estimating Components of both WACC and DDMAn analyst estimates the cost of debt capital for Abbott Laboratories is 3.0% and that its cost of equity capital is 5.0%. Assume that ABT’s statutory tax rate is 21%, the risk-free rate is 2.1%, the market risk premium is 5%, the ABT market price is $84.10 per common share, and its dividends are $1.28 per common share.(a) Compute ABT’s average pretax borrowing rate and its market beta. (Round your answers to one decimal place.) Average borrowing rate =    Market beta =    (b) Assume that its dividends continue at the current level in perpetuity. Use the constant perpetuity dividend discount model to infer the market's expected cost of equity capital. (Hint: Use Price per share = Dividends per share/Cost of equity capital.) (Round your answer to one decimal place.)

The total market value of the common stock of the Okefenokee Real Estate Company is $11.5 million, and the total value of its debt is $7.3 million. The treasurer estimates that the beta of the stock is currently 1.2 and that the expected risk premium on the market is 9%. The Treasury bill rate is 3%. Assume for simplicity that Okefenokee debt is risk-free and the company does not pay tax. a. What is the required return on Okefenokee stock? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. b. Estimate the company cost of capital. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. c. What is the discount rate for an expansion of the company's present business? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. d. Suppose the company wants to diversify into the manufacture of rose-colored spectacles. The beta of unleveraged…