An analyst is estimating the cost of capital for her firm. She has estimated the before-tax costs of the current sources of capital to be 8 percent of debt and 9 percent for equity, If the firm’s marginal tax rate is 40 percent, the costs of debt and equity she could use in her ...
Journal of Applied Corporate FinanceCooper, I.A. and S. Davydenko, 2007, "Estimating the Cost of Risky Debt," Journal of Applied Corporate Finance 19 (3, Summer), 81-86.Cooper Ian A. and Sergei A. Davydenko (2007): "Estimating the Cost of Risky Debt", Journal of Applied Corporate ...
Technical debt is a term that has been used to describe the increased cost of changing or maintaining a system due to shortcuts taken during its developmen... NSR Alves,LF Ribeiro,V Caires,... - IEEE 被引量: 46发表: 2014年 A Large-Scale Empirical Study on Self-Admitted Technical Debt ...
Take a manufacturing company building a new plant catering to rising demand for its products. The plant will cost $1.5 billion and is expected to generate healthy cash flows within three to five years. The manufacturing company has raised 80 percent debt. Its debt-to-value ra...
已知beta volatility 求equity cost of capital 正文 Corporate Finance, 3e (Berk/DeMarzo) Chapter 12 Estimating the Cost of Capital 12.1 The Equity Cost of Capital Use the following information to answer the question(s) below. Eenie Meenie Miney Moe Beta 0.45 0.75 1.05 1.20 Volatility 20% ...
Estimating the Cost of Capital Through Time 来自 国家科技图书文献中心 喜欢 0 阅读量: 15 作者:WE Ferson,DH Locke 摘要: Practitioners needing estimates of a firms equity cost of capital have long relied on the Capital Asset Pricing Model (CAPM). Recent evidence casts renewed doubt on the ...
We have already seen how to arrive at the before-tax cost of debt. The cost of equity using this approach will be: re=rd+Risk Premiumre=rd+Risk Premium The risk premium represents the compensation for additional risk from equity. One of the ways to estimate this risk premium is to compa...
Velma and Daphne Productions is estimating the weighted average cost of capital (WACC). They have several pieces of data to consider. The firm pays 60 percent of its earnings out in dividends. The return on equity (ROE) is 16 percent. Last year’s earnings were 4.00 per share and the ...
Velma and Daphne Productions is estimating the weighted average cost of capital (WACC). They have several pieces of data to consider. The firm pays 60 percent of its earnings out in dividends. The return on equity (ROE) is 16 percent. Last year’s earnings were 35.00. If the firm must ...
It also addresses the cost of preferred stock and debt, thus concluding with an overall cost of capital for the firm, which is called the weighted average cost of capital (WACC). Noteworthy, a risk-free rate is the return available, as of the valuation date, on a security that the ...