Your company has 4 million shares of stock selling at $44 per share, and $300 million in outstanding debt. The equity cost of capital is 15%, and the debt cost of capital is 10%. What is the firm's unlevered cost of capital? Express your answer in decimal format, rounded and accurate to 4 decimal places.

Q: A firm has a debt to equity ratio of 40%, debt of $600,000, and net income of $100,000. What is the…

A: Debt to Equity ratio = Debt/Equity 40% = $600,000 / Equity Equity = $600,000 / 40% Equity = $1500000

Q: The Dog House has net income of $3,450 and total equity of $8,600. The debt-equity ratio is .60 and…

A: Return on asset = Return on equity/(1+Debt equity ratio)  Return on equity = Net Income/Total equity…

Q: Dickson Corporation is comparing two different capital structures. Plan I would result in 26,000…

A: Step 1: Given information:Plan I: 26,000 shares, $85,500 debtPlan II: 20,000 shares, $256,500…

Q: The equity of Blooming Roses has a total market value of $16,000. Currently, the firm has excess…

A: A publicly listed company's stock price, sometimes referred to as its share price, is the current…

Q: A firm earns $3550 million in profits and pays $2480 million in dividends for the year. The firm…

A: Dividends for the year = $2480 Number of preferred stock = 175 million Preferred stock dividend per…

Q: Coldstream Corp. is comparing two different capital structures. Plan I would result in 8,000 shares…

A: Given,   Share price in the plan of capitalization=Share value repurchasedRepurchased shares.…

Q: You own a business with Assets on the books valued at $200,000. These assets were financed with Debt…

A: The Weighted Average Cost of Capital (WACC): The weighted average cost of capital considers all the…

Q: a firm has earnings of $500 million of which 40% will be paid out to investors. the firm has $2.5…

A: When all the earnings available for common shareholders are distributed to common shareholders, the…

Q: A firm earns $895 million in profits and pays $626 million in dividends for the year. The firm has…

A: Dividend: The dividends are the returns provided to the shareholders by the company. The dividends…

Q: What is the net asset value of an investment company with $10,800,000 in assets, $630,000 in current…

A: Net asset value refers to the market value of the shares of the company based on net worth. Net…

Q: Valiant Corp. pays a dividend of $2.5 per share and is expected to pay this amount indefinitely. If…

A: An important financial term is the cost of capital, this shows the costs a business must pay to…

Q: Dickson Corporation is comparing two different capital structures. Plan I would result in 36,000…

A: Price per share= Debt amount / ( Shares of all equity firms - Shares after debt )

Q: Ocean Power Technologies has $300 million of common equity, with 12.2 million shares of common stock…

A: The market value added is the difference between the market value of the firm and the capital…

Q: A firm has a market value equal to its book value. Currently, the firm has excess cash of $11,500…

A: Share price after declaration of dividend is the price which has been adjusted for the dividend…

Q: Harper Industries has $900 million of common equity on its balance sheet; its stock price is $64 per…

A: Value of common equity = e = $900 millionPrice per Share = p = $64Market Value Added = mva = $190…

Q: Kaye's Kitchenware has a market/book ratio equal to 1. Its stock price is $14 per share and it has…

A: The debt-to-capital ratio refers to the measurement of the leverage associated with the company and…

Q: Suppose Caterpillar, Inc., has 658 million shares outstanding with a share price of $75.47, and…

A: Current Equity = 658millionshares∗$75.47=>Current Equity =$49,659.26million or $49.66billionNote…

Q: A company has 200mm of debt, 50mm of cash, 25mm shares of stock trading at $10. It has operating…

A: Enterprise Value = Market Cap + Value of Debt + Cash EBITDA = EBIT + Depreciation and Amortization

Q: A firm has a net income of 10 million and a debt ratio of 60%. Its sales are 200 million and it has…

A: Formulas to be used where ROE = Return on equity   Equity ratio = 1 - debt ratio

Q: If a firm has the following sources of finance, Current liabilities $ 90,000 Long-term debt…

A: Preference shares  or preferenced stock, speak to a frame of proprietorship in a company that…

Q: Vijay

A: The objective of the question is to calculate the number of outstanding shares of Company X.

Q: CSH has EBITDA of $3 million. You feel that an appropriate EV/EBITDA ratio for CSH is 8. CSH has $11…

A: Enterprise value can be calculated Enterprise value = Market Capitalisation + Market value of debt-…

Q: Penguin, Incorporated, has balance sheet equity of $5.8 million. At the same time, the income…

A: The sustainable growth rate (SGR) is a financial measure that represents the rate at which a company…

Q: Harper Industries has $300 million of common equity on its balance sheet; its stock price is $80 per…

A: Book Value of common equity= $300,000,000 Market Value (MVA)= $50,000,000 Price per share= $80 per…

Q: Your firm has net income of $210,000. The number of outstanding shares of common stock is 140,000.…

A: Common stockholders are considered as the owner of the company to which a regular income is provided…

Q: The value of firm is equal to value of debt plus value of equity. Assume the firm has 4 million…

A: The value of firm is a financial term refers to the total worth as estimated by the market or…

Q: What is the net asset value of an investment company with $9,900,000 in assets, $560,000 in current…

A: Assets = $9,900,000 Current liabilities = $560,000 Shares Outstanding = 1,300,000

Q: firm earns $895 million in profits and pays $626 million in dividends for the year. The firm has…

A: The earnings per share is calculated as net income divided by number of issued and outstanding…

Q: Suppose Rocky Brands has earnings per share of $2.30 and EBITDA of $30.7 million. The firm also has…

A: Stock value using P/E ratio = P/E * EPS.Value of Rock Brand  using P/E ratio = Stock value using P/E…

Q: What is the price of a share of the company's common stock? Do not round intermediate calculations.…

A: Information Provided: Stockholders equity = $5.75 billion Price/Earnings ratio = 9.5 Common shares…

Q: You have estimated that the present value of all future free cash flows of Venice Surf Co. to be…

A: The objective of the question is to calculate the value of each share of Venice Surf Co. using the…

Q: Suppose a firm's profits increase 83 percent after sales change from $3.45 million to $4.85 million.…

A: Solution:Degree of operating leverage refers to the ratio of percentage change in firm’s profit to…

Q: Suppose that you have the following information: Net income = $1000 Number of shares = 100 shares…

A: Net income = $1000 Number of shares = 100 shares Share price = $20

Q: Harper Industries has $700 million of common equity on its balance sheet; its stock price is $32 per…

A: Introduction:- Share defined as amount of equity ownership in a corporation. Basic earnings per…

Q: price-to-earnings ratio

A: Price to earnings ratio refers to the ratio who is valuing a company which measured the current…

Q: Solve this problem

A:

Q: Kaye's Kitchenware has a market/book ratio equal to 1. Its stock price is $12 per share and it has…

A: Debt is very important for the business and also interest on the debt is tax deductible so it…