Wyle Co. has $2.3 million of debt, $2 million of preferred stock, and $2.1 million of common equity. What would be its weight on debt? 0.34 0.31 0.28 0.36
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- Bryant Co. has $3.9 million of debt, $1 million of preferred stock, and $2.1 million of common equity. What would be its weight on debt? A) 0.30 B) 0.14 C) 0.56 D) 0.13The Two Dollar Store has a cost of equity of 11.8 percent, the YTM on the company's bonds is 6.3 percent, and the tax rate is 39 percent. If the company's debt-equity ratio a 53, what is the weighted average cost of capital A)8.58% B) 6.60% C)9.65% D) 9.04% E) 7.85%Portneuf Industries has a debt-equity ratio of 1.5. Its WACC is 8.4%, and its cost of debt is 5.9%. The corporate tax rate is 35%. (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) a. What is the company's cost of equity capital? Cost of equity capital b. What is the company's unlevered cost of equity capital? Unlevered cost of equity capital 2.65 % c-1. What would the cost of equity be if the debt-equity ratio were 2? Cost of equity 2.65 % Cost of equity 0.73 % c-2. What would the cost of equity be if the debt-equity ratio were 1.0? Cost of equity c-3. What would the cost of equity be if the debt-equity ratio were zero? 11.5% %
- Kaye's Kitchenware has a market/book ratio equal to 1. Its stock price is $14 per share and it has 5.2 million shares outstanding. The firm's total capital is $135 million and it finances with only debt and common equity. What is its debt-to-capital ratio? Round your answer to two decimal places. %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…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…
- Pickler Company has a debt-equity ratio of 1.39. Return on assets is 7.64 percent, and total equity is $695,000. a. What is the equity multiplier? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the return on equity? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the net Income?If a company's debt-to-equity ratio is 0.75 and its total liabilities are $600,000, what is the value of shareholders' equity? A) $450,000 B) $600,000 C) $800,000 D) $1,200,000A company has 200mm of debt, 50mm of cash, 25mm shares of stock trading at $10. It has operating income (EBIT) of 40mm and D&A of 10mm. What is EV/EBITDA and debt/EBITDA?
- Samuel Corp. provides the following information: EBIT = $386.50 Tax (TC ) = 21% Debt = $700 RU = 10% Question: What is the value of Samuel’s equity?Company X has debt and equity as sources of funds. Company X has market value of debtas $150,000 and book value of debt as $80,000. The company has book value of equity as$100,000 and market value of equity as $125,000. The cost of debt is 8.25% and cost ofequity is 9.57%. the tax rate is 38%. What is the Weighted Average Cost of Capital(WACC)?a. 7.59%b. 7.78%c. 7.14%d. 7.68%Kodi Company has a debt-equity ratio of 1.33. Return on assets is 7.58 percent, and total equity is $665,000. a. What is the equity multiplier? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What is the return on equity? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. c. What is the net income? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. a. Equity multiplier b. Return on equity c. Net income times %
