1 answer

Remaining Time: 1 hour, 45 minutes, 44 seconds. - Question Completion Status: Moving to the next...

Question:

Remaining Time: 1 hour, 45 minutes, 44 seconds. - Question Completion Status: Moving to the next question prevents changes to
Remaining Time: 1 hour, 45 minutes, 44 seconds. - Question Completion Status: Moving to the next question prevents changes to this answer. Question 18 of 24 Question 18 5 points Save Answer The CFO of your firm estimates the risk free rate to be 1.80, credit risk premium to be 2 40%, the domestic beta to be 1.07, and the international beta to be 0.82. The company's capital structure is now 33% debt. The current yield on outstanding bonds is 6.00%. The corporate tax rate is 30%. The expected market return of a well-diversified domestic investor is 8.80% The expected market return of a well diversified international investor is 7.80% Using ICAPM. What is the firm's weighted average cost of capital? Show all work and round your answer to two decimal places. Arial BET Τ Τ Τ Τ Paragraph X BOQ Maths 03 (12pti TT, Words MacBook Pro 80 & $ 4. % 5 Z 8 9

Answers

using ICAPM the cost of equity (1.8 +0.82*(7.8 -1.8)) 6.72 weight of equity (1-0.33) 0.67 Cost of debt = 6% ( we are assuming

.

Similar Solved Questions

1 answer
An analysis of the transactions made by Cookie Mountain Legal, a law firm, for the month...
An analysis of the transactions made by Cookie Mountain Legal, a law firm, for the month of July is shown below. Each increase and decrease in stockholders' equity is explained. risi o w o N oo oo Assets = Liab + Stockholders' Equity Retained Earnings Accounts Accounts Cash + Receivable + Su...
1 answer
Given #r_1(t_1)=(3 t_1 - 1, t_1^2 + 1, sqrt[t_1 + 2])# and #r_2(t_2) = (2 t_2^2 + 3, 1 - 4 t_2, t_2 + 3)# determine the angle between #r_1# and #r_2# at their first intersection point ?
Given #r_1(t_1)=(3 t_1 - 1, t_1^2 + 1, sqrt[t_1 + 2])# and #r_2(t_2) = (2 t_2^2 + 3, 1 - 4 t_2, t_2 + 3)# determine the angle between #r_1# and #r_2# at their first intersection point ?...
1 answer
How do you determine if #4x^5 / absx # is an even or odd function?
How do you determine if #4x^5 / absx # is an even or odd function?...
1 answer
Pre-Lab Exercise N A bar magnet is moved relative to a coil as shown in the...
Pre-Lab Exercise N A bar magnet is moved relative to a coil as shown in the diagram. Which direction will the induced current flow if: 1. The magnet is moving into the coil 2. The magnet is moving out of the coil 3. The coil rotates clockwise until it makes a 45° angle with the magnet 3 ח&...
1 answer
Transfer Pricing Aulman Inc. has a number of divisions including a Furniture Division and a Motel Division. The Motel Division owns and operates a line of budget motels located along major highways. Each year, the Motel Division purchases furniture for t
Transfer PricingAulman Inc. has a number of divisions including a Furniture Division and a Motel Division. The Motel Division owns and operates a line of budget motels located along major highways. Each year, the Motel Division purchases furniture for the motel rooms. Currently, it purchases a basic...
1 answer
Given the following, how many grams of water could be produced in this reaction? What is the limiting reactant? If 8.7 g of water are produced, what is the percent yield?
13.74 L of hydrogen gas at 30.0 C and 801 torr and 6.55 L of oxygen gas at 25 C and 801 torr are drawn into a cylinder where the following reaction takes place. #2 H_2 + O_2(g) -> H_2O (l)#...
1 answer
Quest. 1 (15 pts). a. Calculate the molar solubility of CaF2. Ksp of CaF, = 4.0...
Quest. 1 (15 pts). a. Calculate the molar solubility of CaF2. Ksp of CaF, = 4.0 x 10" ksp CaF2 = 4 x 10-11...
1 answer
A company is creating a website that allows users to upload drawings made in just 5...
A company is creating a website that allows users to upload drawings made in just 5 seconds and get ratings and comments by other users. Currently there are 1000 subscribers doing about 5 drawings a day, but in their wildest dreams they predict they can scale up to 1 billion users doing 10 drawings ...
1 answer
3. Utilizing the data below to calculate the absorbances of your dilutions from part 2. Known...
3. Utilizing the data below to calculate the absorbances of your dilutions from part 2. Known Concentration % Transmittance 0.20 0 0.18 13 0.16 0.14 16 20.1 26 0.12 4. Type your concentrations into the data table below. Generate a graph of your dilution data from part 2 above. Absorbance Solution Co...
1 answer
The point (-3,2) lies on a circumference whose equation is #(x+3)^2+(y+1)^2-r^2 = 0#, what is the radius of the circumference?
The point (-3,2) lies on a circumference whose equation is #(x+3)^2+(y+1)^2-r^2 = 0#, what is the radius of the circumference?...
1 answer
The energy required to increase the separation of a parallel-plate capacitor by a dis- tance dx...
The energy required to increase the separation of a parallel-plate capacitor by a dis- tance dx is equal to the increase of energy stored. Find the force acting between the plates per unit cross-sectional area assuming constant charge on the plates....
1 answer
Please but the answer in radians if you can thankyou Question 9 Find the Im (w)where...
please but the answer in radians if you can thankyou Question 9 Find the Im (w)where w is a solution to Z2 =8+10i Question 10 Find the Im((8+71)(0+-61)) MacBook Air...
1 answer
4. Consider the potential step shown below with a beam of particles incident from the left....
4. Consider the potential step shown below with a beam of particles incident from the left. V(x) a) Calculate the reflection coefficient for the case where the energy of the incident particies is less than the height of tihe step b) Calculate the reflection cocf ficient for the case where the encrgy...
1 answer
In a survey of TV viewing preferences, 100 people are chosen from each age bracket: 15-20,...
In a survey of TV viewing preferences, 100 people are chosen from each age bracket: 15-20, 21-25, 26-30, etc. Is this a random sampling? Is it a simple random sampling...
1 answer
Consider the system X(t) = ax(1) + bu(t) with a = 0.001,b= 1,x(0) = 5. (a)...
consider the system X(t) = ax(1) + bu(t) with a = 0.001,b= 1,x(0) = 5. (a) Simulate this system using the Matlab command initial (b) Now use u(t) = -kx(t) where k is found as the optimal gain by minimizing the performance index J= ax (1) + ru (1) dt Use q=1, r=1 to simulate this system....