Bishop Co has previously calculated figures as follows: Ke = 18.5%, market value of 1 ordinary share = $2.50 Kp = 5.4%, market value of one preference share = $1.95 Kd(1–t)’ (irredeemable debt) = 7%, market value per $100 nominal value =$105 Kd(1–t)’ (redeemable debt) = 6.9%, market value per $100 nominal value =$93.96 Kd(1–t)’ (non tradable debt) = 5.4%, book value $2m. Kp = 6%, market value of one preference share(non-cummulative) = $1.70 In addition the following information is relevant: Ordinary shares in issue 3.8 million Preference shares in issue 2.5 million Preference shares (non-cummulative) in issue 1 million Nominal value in issue of irredeemable loan notes = $6 million Nominal value of redeemable loan notes in issue = $0.8 million. Required:- Calculate the current WACC by market value

glenboro fire prevention corp has a profit margin of 7.70% total asset turn over of 1.90 and roe of 19.17%. what is this firm debt equity ratio?

Green Fire Company has a debt-equity ratio of .75. Return on assets is 2.25 percent, and total equity is $800,000. �What is its equity multiplier?   Question 5 options:   2.75   0.88   1.98   2.40   1.75

Ursala, Incorporated, has a target debt-equity ratio of 1.20. Its WACC is 8.7 percent, and the tax rate is 25 percent. a. If the company's cost of equity is 13 percent, what is its pretax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If instead you know that the aftertax cost of debt is 5.8 percent, what is the cost of equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Cost of debt b. Cost of equity 6.31 % 13.39 %

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.)

Subject:- finance

Calculate Cost of Debt, given: Capital Structure consists of 45% Debt, 45% Preferred Stock, and 10% Equity; DEBT is 25%; Preferred Stock: Sales Price (par value) is $200 and Dividend is $50; Common Stock: Sales Price is $90 and Dividend is $20; Expected Growth Rate is 12%; and the Effective Tax Rate is 26%. 0.29 or 0.19

Assume JUP has debt with a book value of $22 million, trading at 120% of par value. The firm has book equity of $25 million, and 2 million shares trading at $18 per share. What weights should JUP use in calculating its WACC? ..... A. 33.85% for debt, 66.15% for equity B. 29.62% for debt, 70.38% for equity C. 42.31% for debt, 57.69% for equity D. 38.08% for debt, 61.92% for equity