CoffeeCarts has a cost of equity of 15.9%, has an effective cost of debt of 4.2%, and is financed 66% with equity and 34% with debt. What is this firm's WACC? CoffeeCarts's WACC is __% ? (Round to one decimal place.)

Q: A firm has a weighted average cost of capital of 8.4%, a cost of equity is 11%, and a pretax cost of…

A: GivenWeighted Average Cost of Capital (WACC) = 8.40%Company's Cost of Equity =11%Pre-tax cost of…

Q: Hilltop Paving has a levered equity cost of capital of 14.92 percent. The debt-to-value ratio is .4,…

A: rE = rU + [(D/E) x (1-t) x(rU-rD)]WhererE = Levered equity cost of capital = 14.92% or 0.1492rU =…

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Q: ROA?

A: Definition of Operating ROA:Operating Return on Assets (ROA) measures a company's efficiency in…

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Q: A firm has an ROE of 4%, a debt-to-equity ratio of 0.9, and a tax rate of 35% and pays an interest…

A: Variables in the question: ROE=4%Debt-to-equity=0.9Tax rate=35%Interest rate=7%

Q: Provide answer

A: Step 1:To find Philips' Return on Assets (ROA), we need to understand the relationship between ROA,…

Q: need help

A: Step 1: Understand the formula for the given ratios: Return on Equity = Net Income/ Total EquityDebt…

Q: Suppose Microsoft has no debt and a WACC of 9.2%. The average debt-to-value ratio for the softw…

A: WACC is the weighted cost of equity and weighted cost of debt and is the cost of capital of the…

Q: Suppose Alcatel-Lucent has an equity cost of capital of 10.4%, market capitalization of $11.52…

A: WACC = (Cost of equity x Weight of equity) + (Cost of debt x (1-tax rate) x Weight of debt)Weight of…

Q: Suppose Microsoft has no debt and a WACC of 8.7%. The average debt-to-value ratio for the software…

A: The question is based on the concept of Weighted Average Cost of Capital (WACC), which represents a…

Q: Find the WACC given the following information: A firm has a cost of equity of 8% and cost of debt of…

A: Weighted average cost of capital generally referred to by its abbreviation 'WACC' is the average…

Q: Want answer

A: Step 1: GivenDept ratio = 15 % = 0.15ROE = 13 % = 0.13ROA = ? Step 2: Formula usedDebt ratio = Total…

Q: For examples 1 and 2, assume the net cash flow is 2,000,000, the tax rate is 40% and the cost of…

A: The capital structure of a company is comprised of debt and equity. Both these sources of finance…

Q: A firm has an ROE of 2%, a debt/equity ratio of 0.6, a tax rate of 30%, and pays an interest rate of…

A: A financial term known as operating return on assets, or ROA, gauges how profitable and efficient an…

Q: 3. ABC Corp.’s equity multiplier is 1.25. What is its debt ratio?     4.Easy Corp.’s return on…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Consider a firm that has 15% of debt. The rate of return for debt is 6% and the rate of return for…

A: Weight of debt of firm(Wd) =15%

Q: Bank ABC has a Return on Equity (ROE) equal to 22%, a total debt ratio (debt/total assets) equal to…

A: Here,Return on Equity (ROE) is 22%Total Debt Ratio is 0.9Asset Utilisation Ratio is 0.05

Q: Williamson, Inc., has a debt-equity ratio of 2. The firm's weighted average cost of capital is 10…

A: Given: Debt to equity = 2 WACC = 10% cost of equity re=21.6% tax = 30%

Q: CoffeeCarts has a cost of equity of 15%, has a pre-tax cost of debt of 4%, and is financed 70% with…

A: Given details are : Cost of Equity (Ke) = 15% Pre tax cost of debt (Kd) = 4% Weight of Equity = 70%…

Q: A firm has an ROE of 4%, a debt/equity ratio of 0.4, a tax rate of 35%, and pays an interest rate of…

A:

Q: Face Mask Company has a Total Sales of P100,000,000. Its total assets is 50,000,000 and a profit…

A: The mathematical equation:

Q: what is the firm?s ROA?

A: Return on Assets (ROA) is an important tool used by the business for determining the profitability…

Q: Calculate

A: To determine the operating Return on Assets (ROA) for the firm, we need to use the given information…

Q: 2. What would be the WACC if the company in question 1 changed its debt-to-equity ratio to zero?

A: The debt to equity ratio is the proportion of debt of total equity in total invested capital. It is…

Q: 4.46 percent. at is this firm's debt-equity ratio? (Do not round intermediate cald ur answer to 2…

A: Dupont equation is quite used in calculating the return on equity using three ratio and have been…

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A: The growth rate refers to the rate at which something, such as a quantity or value, increases or…

Q: Question: Philips, Inc. has a debt ratio of 15% and ROE =13%. What is Phillips' ROA?

A: To find Philip's Return on Assets (ROA), we can use the relationship between Return on Equity (ROE),…

Q: xel Industries wants to have a weighted average cost of capital of 10 per cent. The company has an…

A: Here we need to have an WACC of 10%WACC stands for weighted average cost of capital.WACC=%of debt *…

Q: FINA's business risk (Ru) is 9% in the industry. The debt-to-equity ratio is 0.4. The cost of debt…

A: MM Proposition II refers to the theory that the cost of equity is considered to be directly…

Q: A firm has a debt-to-equity ratio of 0.50. Its cost of debt is 12%. Its overall cost of capital is…

A: To calculate the cost of equity we will use WACC formula as follows:   WACC = [Ke*E]+[Kd*D] Where…

Q: What is the firm’s equity multiplier? (Please show work and explain)

A: Information Provided: Return on assets = 0.20 Return on equity = 0.25

Q: Ladders, Inc. has a net profit margin of 5.6% on sales of $49.1 million and $1.5 million of interest…

A: ROE and ROA are two profitability ratios which shows ratio of net income with Equity value of the…

Q: Solve this Problem

A: The problem requires the determination of net income. Net income pertains to the amount of…

Q: If the D/E ratio of a firm is 1.4, what is the firm's weight on equity? Hint: the formula is on your…

A: Debt to Equity Ratio = de = 1.4

Q: Need answer

A: Reference:Tamplin, T. (2023i, November 28). Debt Ratio | Definition, Components, Formula, Types,…

Q: A business has a cost of equity of 9.5 percent and a pretax cost of debt of 5.4 percent. The debt -…

A: The cost of capital is the return rate a company must pay to its investors in order to attract…

Q: The weights that Genghis should apply in estimating Bulldogs Inc.’s cost of capital for debt and…

A: Weighted average cost of capital (WACC) refers to the combined cost of company's capital from all…

Q: Suppose Microsoft has no debt and a WACC of 9.2%. The average debt-to-value ratio for the software…

A: Cost of Equity: In finance, the cost of equity is the rate of return required by a firm for a…

Q: The following information is available regarding XYZ Co. sales = $250,000 net income = $35,000…

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Q: ive typing answer with explanation and conclusion    Fama's Llamas has a weighted average cost of…

A: Weighted average cost of capital is total cost of financing the capital of the company. It includes…

Q: 3. Company WACC is 20%. Debt interest rate is 4% and D/ E ratio is 1,6. What is the cost of equity?…

A: Weighted Average Cost of Capital = WACC = 20% Cost of debt = 4% Debt equity Ratio = 1.6

Q: CoffeeCarts has a cost of equity of 15.2%, has an effective cost of debt of 3.8%, and is financed…

A: A company's average after-tax cost of capital from all sources, including common stock, preferred…