What is the EPS in the following case? Debt : Equity ratio = 3:1 Total Capital employed = 20,00,000 Interest rate for debt = 8%, Tax rate = 40% Price per share = 100 EBIT = 4,00,000   a. 35.74 b. 33.6 c. 35.2 d. 31.85

Q: Suppose the company Powerland borrows the new $2 million debt as perpetual bonds at a 5% cost which…

A: A tax shield refers to a reduction in taxable income resulting from allowable deductions and…

Q: A bank with $10,000 in assets has ROA =2% and ROE - 10%. What is its leverage ratio (TA/Equity)?…

A: ROA and ROE for a bank are known. Equity multiplier or the leverage ratio (TA/Equity) needs to be…

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A: The anticipated value of an investment based on its expected future cash flows is known as intrinsic…

Q: Design Interiors has a cost of equity of 14.9 percent and a pretax cost of debt of 8.6 percent. The…

A: Here, Cost of equity = 14.9% Pretax cost of debt = 8.6% Weighted average cost of capital of the firm…

Q: Williamson Inc. has a debt-to-equity ratio of 2.60. The firm's WACC is 9 percent, and its pretax…

A: Given Data: Debt to Equity Ratio2.6:1Debt 2.6Equity1WACC9%Pre tax cost of debt7%Tax Rate 40%

Q: Question 7 Given are the following data: Cost of debt ro 6%; Cost of equity re 12.1%; Marginal tax…

A: The weighted average cost of capital can be calculated by multiplying the cost of capital by their…

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: Given the following information, what is the value of Long-Term Liabilities? Profits 9,000 = Fixed…

A: Long-term liabilities are the obligations of an entity which are to be repaid by the entity after a…

Q: Problem 1 Assume that ABC Corporation earns a net income of 10 million for the current period. The…

A: Residual dividend policy means it is a method that company determine the dividend to pay their…

Q: Debt/Equity of project= Tax Rate Levered equity Debt Issue IR= repayment of principal = Find NPV…

A: NPV stands for Net Present Value which refers to the difference among the PV of the cash outflows as…

Q: Return on Capital Employed (ROCE) =   For Riccarton PLC: ROCE = 50000/380000 X 100 = 13.2%…

A: The question is related to Ratio Analysis. The details are given regarding two companies.

Q: Calculate WACC from following data. Risk free rate 1.63% total debt $78.93 billion Market Cap…

A:

Q: Harmony Sego has a tax rate of 21%, the interest rate on debt is 10%, and the WACC is 15%. If the…

A: WACC:  "Weighted average cost of capital" represents the cost of capital from all of the sources of…

Q: Question 1. WACC   Cost of Debt     After-tax cost of debt   4.90%       Cost of Equity…

A: Capital structure is the proportion of various securities. The purpose of  an optimal capital…

Q: If Net Worth = 14, the Market Value of Assets = 250 with duration of 8.0, the Market Value of…

A: Duration of Assets =(Net Worth/Total Assets*Duration of Equity) + (liabilities/Total Worth*Duration…

Q: What is Ali Babba’s WACC if it has $15,905 with 9% after-tax cost of debt, $7,544 with 8%  cost of…

A: Weighted Average Cost of Capital : It is the weighted average cost of all capital used whether it is…

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Q: Jeel's Inc has a debt-equity ratio of 0.57. The cost of equity is 15.7 percent, the pretax cost of…

A: Debt equity ratio defines the proportion of the debt-equity mix in the capital structure. Investors…

Q: 6. a firm has 5% cost of debt and 10% cost of equity. Market value for bonds is $20m, and $80m for…

A: The term WACC or weighted average cost of capital refers to the total cost the company incurs in…

Q: A bank has 100 in assets and 60 in liabilities. Suppose assets pay on average 6% and liabilities…

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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%

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A: GIVEN ÷ return on total assets = 10% return on common stockholders' equity = 12%

Q: What will be the cost of capital, after tax, for a company with 60% debt and 40% equity split if…

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Q: Cost of Debt     After-tax cost of debt   4.90%       Cost of Equity   Treasury Bond Rate…

A: Note: in the given question, for the year 2015, debt weights are assumed to be 24%. As it's given…

Q: Suppose the company Powerland borrows the new $2 million debt as perpetual bonds at a 5% cost which…

A: Given that Powerland borrows $2 million as perpetual bonds at a 5% cost, which is equal to the…

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A:

Q: You have the following initial information on CMR Co. on which to base your calculations and…

A: a) Calculate WACC of company as below: Hence, the nominal WACC will be 10.06%.

Q: A=10% E=11.2% rrent ratio =1.5 ick ratio=0.9 ss profit margin=24% es=1650000 ning available for…

A: Debt ratio is the ratio calculate on total assets. It repersent the portion of assets financed from…

Q: If the cost of debt before tax is 8% and the corporate tax rate is 15%; then what would be the cost…

A: Part of cost of debt after tax=100-Rate of tax%=100-15%=85%

Q: A Corporation is planning to loan P20M at an effective interest rate of 10%. The company pays income…

A: Loan amount = P20,000,000 Interest rate = 10% Tax rate = 30%

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

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Q: Financials of B Ltd are as follows. 10% Debt 6500; Tax 35%. Find cost of Debt. a. 5.60% b. 6.50%…

A: Before cost of debt = 10% Tax rate = 35%

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Q: The cost of debt for Salalah Mills is 15.25% (effective rate) and its tax rate is 30.05% then what…

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Q: give me answer

A: Step 1:Determine the formula for the weighted average cost of capital (WACC):WACC = (E/V) * Re +…

Q: f the company’s EBIT is OMR 500,000; market value of the equity is OMR 2,000,000 and value of Debt…

A: Market value of equit + Debt  = EBIT / Cost of capital

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