Percent of capital structure: Preferred stock Common equity (retained earnings) Debt Additional information: Corporate tax rate Dividend, preferred 15% 45 40 35% $ 10.00 Dividend, expected common $ 5.50 Price, preferred $ 98.00 Growth rate Bond yield 10% 11% Flotation cost, preferred $ 8.20 $ 77.00 Price, common Calculate the weighted average cost of capital for Digital Processing Incorporated Note: Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.
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- The company capital structure consists of debt 250000 at 0.063, preferred stock 230000 at 11% and common stock 120000 at 14%, calculate company's weighted average cost of capital Select one: O a. 0.0683 O b. 0.0963 O.0.0262 O d. All the given choices are not correct O e. 0.0542Capital Structure components Debt (K) Weighted Cost Total Cost Weights 3.05 25% ? Common shares (K.) 7.15 55% ? Preferred Stock (K,) 9.33 20% ? Weighted Average FIND Cost of CapitalQuestion: Calculate weighted average cost of capital for Puppet corporation. Assume the funds are internally generated. Percent of capital structure: Debt - 54% Common Equity - 32% Preferred stock - 14% Additional information: Bond coupon rate - 9% Bond yield - 9% Bond flotation coat - 1% Dividend, common(just paid) - $1.30 Pride, common - $ 37 Dividend, preferred - 8% price. preferred - $37 Flotation cost, preferred - $1.79 Flotation cost ,common - 8% Corporate growth rate - 10% Corporate tax rate - 35%
- The company capital structure consist of debt 380000 @ 4.05%, common stock 220000@12.09% and preferred stock 400000 @ 19.50%, calculate company's weighted average cost of capital Select one: O a. 12.99% O b. 11% O c. 9.50% O d. None O e. 11.99%What is the weighted-average cost of capital for SKYE Corporation given the following information? Equity shares outstanding Stock price per share Yield to maturity on debt Book value of interest-bearing debt Coupon interest rate on debt. Interest rate on government bonds SKYE's equity beta Historical excess return on stocks Tax rate Note: Enter your answer to 1 decimal place. Weighted-average cost of capital % 1 million. $ 35 7.68% $14 million 9% 7% 0.75 7.0% 40%Font Paragraph Drawing EXAMPLE 4: The capital employed in a business has been financed, as below: Equity Share Capital OMR 600,000 7% Preference Share Capital OMR 400,000 6% Debentures OMR 800,000 OMR 200,000 Reserves and Surplus The company earns a profit of OMR 4,00,000 before interest and Tax. Calculate Return on capital employed (ROCE) ces NOTES COMMENTS
- The company's capital structure is as follows Debt Weight 25%. Preferred Stock Weight 25% Common equity Weight 50%. The cost of debt is 12%6, the cost of preferred stock is 15% and the cost of common equity is 0.244 Calculate the companys weighted average Cost of tapital. Select one: Oa ob920 Ob.0.1895 Oc01520 Od All the given choices are not correct Oe 0.1595Blazingame Inc.'s capital components have the following market values. Debt$34,030,000Preferred Stock16,500,000Common equity47,860,000 Calculate the firm's capital structure and show the weights that would be used for a weighted average cost of capital (WACC) computation. Round the values to the nearest dollar and the weights to three decimal places of percentage. Debt$ fill in the blank 1 Values Weights Debt $ _____ Preferred Stock ____ _____ Common Equity ____ _____ $ _____ _____Jordan Manufacturing reports the following capital structure: Current liabilities P100,000 ; Long-term debt 400,000 ; Deferred income taxes 10,000 ; Preferred stock 80,000 ; Common stock 100,000 ; Premium on common stock 180,000 ; Retained earnings 170,000. What is the debt ratio? A. 0.48 B. 0.49 C. 0.93 D. 0.96
- Company Total assets Interest-bearing debt Average pre-tax borrowing cost Common equity: Book value Market value Income tax rate Market equity beta Risk free rate Market risk premium A 14000 2500 6.00% 3000 2500 35.00% 2.25 2.50% 4.50% B 110000 33000 4.00% 13000 110000 35.00% 0.75 2.50% 4.50% C 44000 18000 5.00% 14000 22000 35.00% 1.2 2.50% 4.50% [WD x RD * (1 - tax rate)] + [wPx RP] + [WE * RE] = 1 Compute the weighted average cost of capital (WACC) for Company A assuming a cost of equity capital of 12.63%. COST OF EQUITY 12.625 2 Compute the weighted average cost of capital (WACC) for Company B assuming a cost of equity capital of 5.88%. COST OF EQUITY 5.875 3 Compute the weighted average cost of capital (WACC) for Company C assuming a cost of equity capital of 7.90%. COST OF EQUITY 7.9S&G Given the following information on S & G Inc.'s capital structure, compute the company's weighted average cost of capital. Type of Capital Percent of Capital Structure Before-Tax Component Cost Bonds 40% 7.5% Preferred Stock 5% 11% Common Stock (Internal Only) 55% 15% The tax rate is 28%. 15) The after tax rate for the bond is %. (2 decimals) %. (2 16) Before tax wacc is decimals) 17) After tax wacc is _-- _%. (2 decimals)What is the weighted-average cost of capital for SKYE Corporation given the following information? Equity shares outstanding Stock price per share Yield to maturity on debt Book value of interest-bearing debt Coupon interest rate on debt Interest rate on government bonds SKYE's equity beta Historical excess return on stocks Tax rate Note: Enter your answer to 1 decimal place. X Answer is complete but not entirely correct. Weighted-average cost of capital 11.6 × % 1 million $ 23 7.68% $14 million 9% 7% 0.75 5.8% 40%