A firm's estimated costs of debt, preferred stock, and common stock are 12%,17%, and 20%, respectively. Assuming equal funding from each source and a marginal tax rate of 40%, the weighted average cost of capital (WAAC) is closest to: A13.9%. B16.3%. C14.7%. 相关知识点: 试题...
A firm’s before-tax costs of debt, preferred stock, and equity are 12%, 17%, and 20%, respectively. Assuming equal funding from each source and a marginal tax rate of 40%, the weighted average cost of capital (%) is closest to: A. 14.7%. B. 9.8%. C. 13.9%. 相关知识点: ...
Re, can be expressed as:Re = Rf + e(Rm - Rf)where Rm is the market return and e is the beta of the firm's equity. Using the CAPM, we can express the expected return on the firm's assets as:Ra = Rf + a(Rm - Rf)Now, since the firm's debt is assumed to be risk-free,...
33.Given the following information about a firm: debt-to-equity ratio of 50% tax rate of 40% cost of debt of 8% cost of equity of 13%, the firm's weighted average cost of capital (WACC) is closest to: A:A.7.5%. B:B.8.9%. C:C.10.3%....
百度试题 题目2. A firm has a debt-equity ratio of .55. What is the equity multiplier if total equity is $4,500? A. .45 B. 1.55 C. 1.82 D. 2.22 相关知识点: 试题来源: 解析 B.1.55 反馈 收藏
The unlevered cost of capital is:A.the cost of capital for a firm with no equity in its capital structure.B.the cost of capital for a firm with no debt in its capital structure.C.the interest tax shield times pretax net income.D.the cost of preferred stock for a firm with equal ...
[单选题]Which one of the following terms is defined as the mixture of a firm's debt and equity financing? A. working capital management B. cash management C. cost analysis D. capital budgeting E. capital structure 相关知识点: 试题来源: ...
aTo estimate the cost of debt we often assume it is equal to the required rate of return on existing debt outstanding in the markets (Of course, when a firm actually goes to the market, conditions may have changed, underwriting costs may be greater, etc.) 估计当然我们经常假设债务的费用它...
A firm has a capital structure of 60% debt and 40% equity and a dividend payout ratio of 50%. If a surplus results from first-pass pro-forma financial statements based on estimated sales growth and assuming the capital structure and dividend payout ratio are maintained, which of the foll...
The equity and debt of a firm can be considered as a call option and put option, respectively. For both of options, the underlying asset is the firm itself and the exercise price is the total face value of its debt.