Bermuda Cruises issues only common stock and coupon bonds. The firm has a debt-equity ratio of 1.41. The cost of equity is 13.5 percent and the pretax cost of debt is 7.6 percent. What is the capital structure weight of the firm's equity if the firm's tax rate is 25 percent? Multiple Choice O O 3871 4867 5851 4149 4602
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- Bermuda Cruises issues only common stocks and coupon bonds. The firm has a debt-equity ratio of 0.45. The cost of equity is 17.6 percent. Please answer:What is the pre-tax cost of the company debt if weighted average costs of the company is 13.5% and the firm's tax rate is 35 percent?Bermuda Cruises issues only common stocks and coupon bonds. The firm has a debt-equity ratio of 0.45. The cost of equity is 17.6 percent.What is the pre-tax cost of the company debt if weighted average costs of the company is 13.5% and the firm's tax rate is 35 percent?Bermuda Cruises issues only common stock and coupon bonds. The firm has a debt–equity ratio of .85. The cost of equity is 12.1 percent and the pretax cost of debt is 6.9 percent. What is the capital structure weight of the firm's equity if the firm's tax rate is 39 percent? Multiple Choice .6123 .5127 .5405 .4595 .5858
- Bermuda Cruises issues only common stock and coupon bonds. The firm has a debt-equity ratio of .45. The cost of equity is 17.6 percent and. Required: What is the pre-tax cost of the company debt if weighted average costs of the company is 13.5% and the firm's tax rate is 35 percent? WACC = wD x kD (1-Tc) + wE x kEAntwerp Co. has a debt-to-equity ratio of 1.4, a corporate tax rate of 30%, pays 4% interest on its debt and has a required rate of return on equity of 12%. What is II’s WACC? How much does the debt tax shield reduce II’s WACC? What is the required rate of return on firm assets?Bermuda Cruises issues only common stock and coupon bonds. The firm has a debt-equity ratio of 1.37. The cost of equity is 13.3 percent and the pretax cost of debt is 7.5 percent. What is the capital structure weight of the firm's equity if the firm's tax rate is 23 percent?. Multiple Choice O O 4219 4937 5781 4672 2941
- Blitz Industries has a debt-equity ratio of 1.2. Its WACC is 7.4 percent, and its cost of debt is 5.1 percent. The corporate tax rate is 22 percent. a. What is the company’s cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the company’s unlevered cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c-1. What would the cost of equity be if the debt-equity ratio were 2? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c-2. What would the cost of equity be if the debt-equity ratio were 1.0? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c-3. What would the cost of equity be if the debt-equity ratio were zero? (Do not round intermediate…Blitz Industries has a debt-equity ratio of 1.7. Its WACC is 8.1 percent, and its cost of debt is 5.7 percent. The corporate tax rate is 23 percent. a. What is the company’s cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the company’s unlevered cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c-1. What would the cost of equity be if the debt-equity ratio were 2? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c-2. What would the cost of equity be if the debt-equity ratio were 1.0? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c-3. What would the cost of equity be if the debt-equity ratio were zero? (Do not round intermediate…Shadow Corp. has no debt but can borrow at 7.9 percent. The firm's WACC is currently 9.7 percent, and the tax rate is 23 percent. a. c. What is the firm'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 35 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.) If the firm converts to 50 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 35 percent debt, what will the company's WACC be? (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 50 percent debt, what will the company's WACC be? (Do not round intermediate calculations and…
- A firm has a debt-equity ratio of 0.5 and a cost of debt of 5 percent. The industry average cost of unlevered equity is 15 percent. What is the weighted average cost of capital for this firm? Ignore tax. O 0.12 O 0.13 0.14 O 0.15Bermuda Cruises issues only common stock and coupon bonds. The firm has a debt-equity ratio of 1.29. The cost of equity is 12.9 percent and the pretax cost of debt is 7.3 percent. What is the capital structure weight of the firm's equity if the firm's tax rate is 39 percent? Multiple Choice 5633 4820 5085 4089 4367 < Prev 9 of 40 Next e1. Soda Fizz has debt outstanding that has a market value of $3 million. The company's stock has a book value of $2 million and a market value of $6 million. What are the weights in SodaFizz's capital structure? 2. The yield to maturity on Soda Fizz's debt is 7.2%. If the company's marginal tax rate is 21%, what is Soda Fizz's effective cost of debt? 3. SodaFizz paid a dividend of $2 per share last year; its dividend has been growing at a rate of 2% per year, and that growth rate is expected to continue into the future. The stock of SodaFizz is currently trading at $19.50 per share. According to the constant dividend growth model, what is the cost of equity capital for Soda Fizz? 5. Given the answers to Problems 1, 2, and 3, what is SodaFizz's WACC when the constant dividend growth model is used to calculate its equity cost of capital?