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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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What is this firm s WACC?? Solve this problem general Accounting question

Transcribed Image Text:CoffeeCarts has a cost of equity of 15%, an
effective cost of debt of 4%, and it is financed
70% with equity and 30% with debt. What is this
firm's WACC?
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- CoffeeCarts has a cost of equity of 15.1%, has an effective cost of debt of 3.8%, and is financed 69% with equity and 31% with debt. What is this firm's WACC? CoffeeCarts's WACC is __ % ? (Round to one decimal place.)arrow_forwardCoffeeCarts has a cost of equity of 15.2%, has an effective cost of debt of 3.8%, and is financed 72% with equity and 28% with debt. What is this firm's WACC? Coffee Carts's WACC is%. (Round to one decimal place.)arrow_forwardFinancearrow_forward
- CoffeeCarts has a cost of equity of 15.1%, has an effective cost of debt of 3.7%, and is financed 65% with equity and 35% with debt. What is this firm's WACC?arrow_forwardOblib Inc. has a debt-equity ratio of 2, and a weighted average flotation cost of 4%. What is the dollar flotation cost if the company were to raise $1.5 million in the capital market? Please if you can, show all calculationsarrow_forwardFind the WACC given the following information: A firm has a cost of equity of 8% and cost of debt of 6.5%. The debt - toequity ratio is 0.75. The tax rate is 15%.arrow_forward
- General Accountingarrow_forwardCaddy manufacturing has a target debt equity ratio of .45. Its cost of equity is 10.3%, and its pre- tax cost of debt is 6.4%. If the tax rate is 21%, what is the company's WACC ? Pls type in computer! Thanksarrow_forwardGates Appliances has a return-on-assets (investment) ratio of 20 percent. a. If the debt-to-total-assets ratio is 25 percent, what is the return on equity? (Input your answer as a percent rounded to 2 decima) places.) b. If the firm had no debt, what would the return-on-equity ratio be? (Input your answer as a percent rounded to 2 decimal places.)arrow_forward
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