4G 2.30 4G1 ( 10 4G i 11:3 VA KB/s = 3 SCRIBD Search Q 11. With risk-free rate of 5%, Beta of 1.5, market return of 8%, prevailing credit spread of 3%, tax rate of 30% and Equity ratio of 30%, compute for the weighted average cost of capital. a. 6.00% b. 6.77% c. 7.00% d. 7.77% 12. With risk-free rate of 6%, Beta of 1.5, market return of 8%, prevailing credit spread of 3%, tax rate of 30% and Equity ratio of 30%, Using CAPM method compute for the cost of equity. 100 VALUATION CONCEPTS AND METHODOLOGIES а. 9.00% b. 6.77% C. 8.00% d. 8.77% 13. The appropriate WACC of a firm is 6.43%. With risk-free rate of 4%, market return of 8%, prevailing credit spread of 3%, tax rate of 30% and Equity ratio of 30%, compute for the volatility of stocks or Beta. а. 1.00 b. 1.25 C. 1.50 d. 1.75 14. The appropriate WACC of a firm is 6.43%. With risk-free rate of 4%, market return of 8%, prevailing credit spread of 3%, tax rate of 30% and Equity ratio of 30%, compute for the after tax cost of debt. a. 4.90% b. 5.00% C. 7.00% d. 10.00% 15. SPPE Corp. is planning to expand and new projects is expecting to earn an average of Php375,000 annually. If the project requires for Php5,000,000 investment at 10% cost of capital. Compute for the Economic Value Added. a. Php 125,000.00 b. (Php 125,000.00) c. Php 875,000.00 d. (Php 875,000.00) 16. SLAC Corp. is plannina to expand and new proiects is expecting to Home Вooks Audiobooks Documents II
4G 2.30 4G1 ( 10 4G i 11:3 VA KB/s = 3 SCRIBD Search Q 11. With risk-free rate of 5%, Beta of 1.5, market return of 8%, prevailing credit spread of 3%, tax rate of 30% and Equity ratio of 30%, compute for the weighted average cost of capital. a. 6.00% b. 6.77% c. 7.00% d. 7.77% 12. With risk-free rate of 6%, Beta of 1.5, market return of 8%, prevailing credit spread of 3%, tax rate of 30% and Equity ratio of 30%, Using CAPM method compute for the cost of equity. 100 VALUATION CONCEPTS AND METHODOLOGIES а. 9.00% b. 6.77% C. 8.00% d. 8.77% 13. The appropriate WACC of a firm is 6.43%. With risk-free rate of 4%, market return of 8%, prevailing credit spread of 3%, tax rate of 30% and Equity ratio of 30%, compute for the volatility of stocks or Beta. а. 1.00 b. 1.25 C. 1.50 d. 1.75 14. The appropriate WACC of a firm is 6.43%. With risk-free rate of 4%, market return of 8%, prevailing credit spread of 3%, tax rate of 30% and Equity ratio of 30%, compute for the after tax cost of debt. a. 4.90% b. 5.00% C. 7.00% d. 10.00% 15. SPPE Corp. is planning to expand and new projects is expecting to earn an average of Php375,000 annually. If the project requires for Php5,000,000 investment at 10% cost of capital. Compute for the Economic Value Added. a. Php 125,000.00 b. (Php 125,000.00) c. Php 875,000.00 d. (Php 875,000.00) 16. SLAC Corp. is plannina to expand and new proiects is expecting to Home Вooks Audiobooks Documents II
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
11,12,13,14 and 15 please
Transcribed Image Text:4G
2.30 4G1 ( 10
4G
i 11:3
VA
KB/s
= 3 SCRIBD
Search
Q
11. With risk-free rate of 5%, Beta of 1.5, market return of 8%, prevailing
credit spread of 3%, tax rate of 30% and Equity ratio of 30%,
compute for the weighted average cost of capital.
a. 6.00%
b. 6.77%
c. 7.00%
d. 7.77%
12. With risk-free rate of 6%, Beta of 1.5, market return of 8%, prevailing
credit spread of 3%, tax rate of 30% and Equity ratio of 30%, Using
CAPM method compute for the cost of equity.
100
VALUATION CONCEPTS AND METHODOLOGIES
а. 9.00%
b. 6.77%
C. 8.00%
d. 8.77%
13. The appropriate WACC of a firm is 6.43%. With risk-free rate of 4%,
market return of 8%, prevailing credit spread of 3%, tax rate of 30%
and Equity ratio of 30%, compute for the volatility of stocks or Beta.
а. 1.00
b. 1.25
C. 1.50
d. 1.75
14. The appropriate WACC of a firm is 6.43%. With risk-free rate of 4%,
market return of 8%, prevailing credit spread of 3%, tax rate of 30%
and Equity ratio of 30%, compute for the after tax cost of debt.
a. 4.90%
b. 5.00%
C. 7.00%
d. 10.00%
15. SPPE Corp. is planning to expand and new projects is expecting to
earn an average of Php375,000 annually. If the project requires for
Php5,000,000 investment at 10% cost of capital. Compute for the
Economic Value Added.
a. Php 125,000.00
b. (Php 125,000.00)
c. Php 875,000.00
d. (Php 875,000.00)
16. SLAC Corp. is plannina to expand and new proiects is expecting to
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