Business, 03.12.2021 21:20 cantuj723

Blitz Industries has a debt-equity ratio of 1.4. Its WACC is 7.6 percent, and its cost of debt is 5.3 percent. The corporate tax rate is 24 percent. a.
What is the company’s cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.)

b. What is the company’s unlevered cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.)
c-1. What would the cost of equity be if the debt-equity ratio were 2? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.)
c-2. What would the cost of equity be if the debt-equity ratio were 1.0? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.)
c-3. What would the cost of equity be if the debt-equity ratio were zero? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.)

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 21:40

Torino company has 1,300 shares of $50 par value, 6.0% cumulative and nonparticipating preferred stock and 13,000 shares of $10 par value common stock outstanding. the company paid total cash dividends of $3,500 in its first year of operation. the cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is:

Answers: 2

Answer

Business, 22.06.2019 02:30

rural residential development company and suburban real estate corporation form a joint stock company. the longest duration a joint stock company can be formed for is

Answers: 2

Answer

Business, 22.06.2019 12:50

Salaries are $4,500 per week for five working days and are paid weekly at the end of the day fridays. the end of the month falls on a thursday. the accountant for dayton company made the appropriate accrual adjustment and posted it to the ledger. the balance of salaries payable, as shown on the adjusted trial balance, will be a (assume that there was no beginning balance in the salaries payable account.)

Answers: 1

Answer

Business, 23.06.2019 00:00

Asap! the following information is given for tripp company which uses the indirect method.

Answers: 1

Answer

You know the right answer?

Blitz Industries has a debt-equity ratio of 1.4. Its WACC is 7.6 percent, and its cost of debt is 5....

Questions