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What does wacc measure?
WACC is a component used in finance to measure the company's cost of capital, usually as a discounting factor and the companies use debt or equity for financing.
What is the nickname brokers use for an up market?
A Bull Market
Asset beta is 1.10 debt beta 0.25. market risk premium 6 in both the UK and the US. target debt-equity ratio is 4060. pre tax cost 4.5. It is 2.75 in the US.Tax rate 30. What is WACC?
WACC=Re(E/V)+Rd(1-Tc)(D/V) Acording to CAPM Re=Rf+(Rm-Rf)Be Rd=Rf+(Rm-Rf)Bd Also Ba=(D/V)Bd+(E/V)Be Be=[Ba-(D/V)Bd]/(E/V) WACC=[Ba-(D/V)Bd]/(E/V)(E/V)+[Rf+(Rm-Rf)Bd](1-Tc)(D/V) ill leave it too you to do the calculations as i really cant be botherd right now. hope that helps. sorry i didnt know what pre tax cost is. if it isn't the risk free rate then i would use whatever the government bond coupon rate is.
When calculating dividend do you use 365 days or 366?
you use 365 because 366 only comes up every 7 years trust me i know because my birthday is on the 28th
What defind market you are trying to reach?
The best way to define the market is to examine who will most likely use your products. If your products is geared towards teens, then you should market it to them.
What does wacc measure?
WACC is a component used in finance to measure the company's cost of capital, usually as a discounting factor and the companies use debt or equity for financing.
How do I find out my car's market value?
A great place to find your vehicle's market value would be Kelley Blue Book. Even dealerships use this tool in determining market value of trade in vehicles, so it is a great tool for you to use.
Does state farm insurance use the trade in value or the retail value of a car to determine the value of a car if totaled?
They use a market value guide.
When calculating risk analysis you use both Value Rating Factors and Likelihood categories The table that covers the sum of your value rating is?
Table 3-13
What are the effects of a corporate tax on the Weighted Average Cost of Capital of a business?
Only when interest paid on debt is allowed to be tax deductible that a corporate tax will help pull the WACC down. This is because we used an after-tax rate for cost of debt in calculating WACC. And by using the after-tax rate we are assumming that the government allows companies to use interest paid on debt reduce their income tax obligations, hence creating a tax-shield benefit for adding debt. From Peerawich
Which depreciation method does not use residual value in calculating the first years depreciation expense?
Declining-Balance
When calculating risk analysis you use both value rating factors and likelihood categoies the table the covers te sum of your value rating is?
Table 3-13
How business use value chains and SWOT analysis to identify electronic commerce opportunities?
Businesses use value chains and SWOT analysis to identify electronic commerce opportunities by constantly verifying that the values they are calculating are correct.
What is use to determine the value of one currency against another?
The currency market.
When calculating risk analysis you use both the value rating factors and the likelihood categories The table for law enforcement effectiveness is?
Table 4-17
How do you solve this finance problem on WACC?
Cablevision Inc. has bonds with a coupon rate of 12% (assume annual payments) , and a maturity of 30 years. These bonds today are selling for $1392.73. Additionally, the firm's beta is 1.2, the risk-free rate is 5 percent, and the expected market return is 13%. The firm has $300M of debt and $550M of Equity on its balance sheet. The firm's stock price is $20/share, its current dividends are $1.50 per share, and these dividends are expected to grow at 7% per year. The book value of equity is $10/share. The firm's tax rate is 40%. The flotation costs of bonds are 4%, and for stock issues it is 8%. The firm plans on satisfying 75% its equity needs internally and 25% of it externally.a. Find the firm's cost of debt.b. Find the firm's cost of internal equity using the CAPM.c. Find the firm's cost of internal equity using the dividend growth modeld. Find the firm's cost of external equity using the dividend growth modele. Find the firm's cost of external equity using CAPMf. Find the firm's WACC using the dividend growth model for the firm's costs of internal and external equity.g. Find the firm's weighted average cost of capital (WACC) using CAPM in calculating the firm's costs of internal and external equity.h. Under what assumptions would it be appropriate for the firm to use its WACC as the discount rate in evaluating its projects?
The use of ict in office?
calculating
