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Cost of Debt     After-tax cost of debt   4.90%       Cost of Equity   Treasury Bond Rate (risk free rate) 5% Beta 0.48 Risk premium 7%               Years 2014 2015 2016 2017 Capital Structure         Debt 22% 25% 28% 27% Equity 78% 76% 72% 73%             Please calculate following for each of the year from 2014 to 2017:3 1. Cost of Debt (before tax) 2. Cost of Equity 3. WACC (Weighted Average Cost of Capital)

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Company Name  Total                 Debt Ratio  Levered     Equity Beta  Marginal Tax Rate  Revenues             ($ Mill)  Priv-Held Automotive      65.00%      ?     40.00%    Ford Motor Company  85.98%  1.07  7.59%  157,978   Fiat Chrysler America  74.29%  2.18  11.95%  108,018   General Motors  81.18%  1.42  3.47%  144,010   1. Calculate the unlevered asset betas for each of the three comparable firms being sure to adjust appropriately for their respective marginal tax rates    2. Calculate the arithmetic industry average of the three asset betas     3. Calculate the weighted average asset beta using the revenues to determine the weights    4. Estimate a levered equity beta for the Privately-Held Automotive division for both the arithmetic and the weighted averages.    5. Write out the algebraic equation of the variance (s2) of a portfolio with three assets, A, B and C.

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Financial Accounting

Profit margin Capital intensity ratio Debt-equity ratio Net income Dividends 11 11 = = 8.6% 0.47 0.62 $ 97,000 $ 43,000 Required: Based on the above information, calculate the sustainable growth rate for Southern Lights Co. include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).)

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Question 1. WACC   Cost of Debt     After-tax cost of debt   4.90%       Cost of Equity   Treasury Bond Rate (risk free rate) 5% Beta 0.48 Risk premium 7%               Years 2014 2015 2016 2017 Capital Structure         Debt 22% 25% 28% 27% Equity 78% 75% 72% 73%             Please calculate following for each of the year from 2014 to 2017 Cost of Debt (before tax) Cost of Equity WACC (Weighted Average Cost of Capital)

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Liquidity 20X2 20X1 Current Ratio            1.79            1.60 Quick ratio            1.07            1.33       Profitability 20X2 20X1 ROE 6% 6% Operating Profit Margin 31% 30% Net Profit Margin 12% 14%       DuPont Analysis 20X2 20X1 Financial Leverage 1.97 1.96 ROA 2.81% 3.09% ROE 6% 6% 1. Interpret the liquidity of the company.   2. Prepare a report based on the DuPont analysis of the company. what does it mean the result show.

Check my work Evans Technology has the following capital structure. Debt Common equity 25% 75 The aftertax cost of debt is 7.00 percent, and the cost of common equity (in the form of retained earnings) is 14.00 percent. a. What is the firm's weighted average cost of capital? (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.) Weighted Cost Debt Common equity Weighted average cost of capital 0.00 % An outside consultant has suggested that because debt is cheaper than equity, the firm should switch to a capital structure that is 50 percent debt and 50 percent equity. EGO 152 APA ttv MacBook Air

Consider the following table of Earnings Components:   Firm A   Firm B   Firm C Reported EPS $12   $15   $18 Analyst’s EPS composition:           Permanent component (βP = 5) 80%   60%   75% Transitory component (βT = 1) 10%   35%   25% Value-irrelevant component (β0 = 0) 10%   5%   0%               The implied total earnings multiple of Firm B is: Multiple Choice 1.00. 3.00. 3.35. 12.00

Xena Corp. Total Assets $21,249 Interest-Bearing Debt (market value) $11,070 Average borrowing rate for debt 10.20% Common Equity:   Book Value $5,535 Market Value $23,247 Marginal Income Tax Rate 19% Market Beta 1.64             Using the information from the table, and assuming that the risk-free rate is 4.5% and the market risk premium is 6.2%, calculate Xena's weighted-average cost of capital:

1. Is leverage better or worse in the period from 2015-2021? Why?

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Calculate the cost of equity with the CAPM Calculate the cost od debt based on what the company is currently paying for its debt - Beta of the industry = 1.16 - Equity Risk Premium = 6.97% - Risk-free rate = 3.77% - Objective capital structure of the industry = 13.24%

Market Value of Equity Market Value of Debt Cost of Equity Cost of Debt Tax Rate Company A $200,000 $150,000 8% 3% 30% Company B $300,000 $200,000 5% 2% 30% ^ Based solely on their current weighted average cost of capital, which company should pursue an investment opportunity with an expected return of 6%?