A company is 30% financed by risk-free debt. The interest rate is 6%, the expected market risk premium is 7%, and the beta of the company's common stock is 1.2. What is the after-tax WACC, assuming that the company pays tax at 25%?
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- A Company is 40% financed by risk-free debt. The interest rate is 8%, the expected market risk premium is 6%, and the beta of the company’s common stock is 0.5. What is the after-tax WACC, assuming that the company pays tax at a 20% rate?I need correct answer general accounting questionA company is 48% financed by risk-free debt. The interest rate is 9%, the expected market risk premium is 7%, and the beta of the company's common stock is 0.58. What is the after-tax WACC, assuming that the company pays tax at a 35% rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Answer is complete but not entirely correct. After-tax WACC 13.06 %
- attachedA company has a beta of 1.4, pre-tax cost of debt of 5.9% and an effective corporate tax rate of 25 %. 44% of its capital structure is debt and the rest is equity. The current risk - free rate is 0.6% and the expected market risk premium is 6.0%. What is this company's weighted average cost of capital? Answer in percent, rounded to two decimal places.Alpha Inc.'s beta coefficient is 1.4, the risk-free rate is 10 percent, and the market risk premium is 5 percent. Based on the capital asset pricing model (CAPM), what should be Alpha's cost of retained earnings? 11% 17% 16% 12%
- CalculateSuppose Simmons' common stock has a beta of 1.37, the risk-free rate is 3.4% and the market risk premium is 8.2%. The yield to maturity on the firm's bonds is 7.6% and the debt-equity ratio is .45. What is the WACC if the tax rate is 23% and all interest is tax deductible?I need this question answer general accounting
- A company has a 50/50 mix of Debt and Equity. The YTM on it's debt is 7.5%. The risk free interest rate (10 year) is 4.5%. Tax rates are 20%. The company's expected return on Equity is 12.5%. What is the company's WACC?Help me pleaseA company has a beta of 1.8, pre-tax cost of debt of 5% and an effective corporate tax rate of 20%. 40% of its capital structure is debt and the rest is equity. The current risk-free rate is 1.5% and the expected market return is 5.5%. What is this company's weighted average cost of capital? Answer in percent, rounded to one decimal place.