Finance Coffee carts has a cost of equity of 15%, has an effectivecost of debt of 4%, and if financed 70% with an equity of30% with debt.Required:What is this firm's WACC?

WACC = (Weight of Equity * Cost of Equity)+((Weight of Debt * Cost of Debt)*(1-Tax Rate)) WACC =…

Answered: Coffee carts has a cost of equity of…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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CoffeeCarts has a cost of equity of 15.2%, has an effective cost of debt of 3.8%, and is financed 72% with equity and 28% with debt. What is this firm's WACC? Coffee Carts's WACC is%. (Round to one decimal place.)
The Ashwood Company has a long-term debt ratio of 0.50 and a current ratio of 1.60. Current liabilities are $970, sales are $5,175, profit margin is 9.80 percent, and ROE is 17.60 percent. What is the amount of the firm's net fixed assets? Hint: This is another complex problem that requires a number of steps. Remember that CA + NFA=TA. So, if you find CA and TA, then you can solve for NFA Helpful Equations: Long-term debt ratio - LTD/(LTD + TE) CR-CA/CL PM-NI / Sales ROE-NI/TE O $3,851.53 O $3,601.92 O $5,181.07 O $6.733.07 O $2.881.53
CoffeeCarts has a cost of equity of 15.1%, has an effective cost of debt of 3.8%, and is financed 69% with equity and 31% with debt. What is this firm's WACC? CoffeeCarts's WACC is __ % ? (Round to one decimal place.)
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Coffee carts has a cost of equity of 15%, has an effective cost of debt of 4%, and if financed 70% with an equity of 30% with debt. Required: What is this firm's WACC?