WACC

Calculate WACC of firm that has the following capital structure: equity (48 million rubles); retained earnings (1800 thousand rubles); long-term liabilities (54 million rubles). At the same time, the cost of the firm's stocks is 19%, the cost of retained earnings is 34%, and the average effective after-tax long-term liabilities is 28%.

• 23,94%

• 14,48%

• 12,21%

• 21,05%

Based on the theory, determine what is violation (inconsistency) is in 1 task?

• there are no short-term liabilities of the company

• the cost of debt capital is higher than the cost of equity capital

• the cost of retained earnings is higher than the cost of debt capital

• there are no preferred stocks

Calculate the weighted average cost of capital for a company if its equity capital is $ 50 billion. The market value of its total long-term debt is $ 1.5 billion. The beta of common stocks is 1. The risk premium is 5%. The cost of long-term debt is 5.5%. The return on government bonds with a 30-year maturity is 6.25%.

• 12,23%

• 10,32%

• 13,94%

• 11,08%

Calculate the weighted average cost of capital using the following information: equity is $ 470 500, long-term liabilities are $ 542 000, retained earnings are $1 750, short-term liabilities are $100 000 rubles. The cost of equity is 31%, the cost of retained earnings is 32%, the cost of on long-term liabilities is 27%, the cost of short-term liabilities is 13%

• 31,04%

• 29,96%

• 27,32%

• 28,81%

Company has a 10% credit. What is its if the company's income tax is 33%?

• 6,7%

• 10%

• 9,8%

• 8,2%

The face value is 50 rubles. The current cost is 42 rubles. The Maturity is 2 years. Issue costs are 2%. Income tax is 10%. The coupon is equal to 1% of the face value. What is the cost of a fixed rate bond?

• 11,05%

• 10,25%

• 11,67%

• 12,32%

The face value of zero interest rate bond is $ 150. The current price is $ 132. The maturity is 3 years. The cost of issuing the zero interest rate bond was $ 20 What is the cost of zero interest rate bond?

• 16,43%

• 17,02%

• 16,22%

• 17,69%

Preferred stocks: par value is 85$, current price is 78$, issue costs are 5% of par value, dividends are 7% of par value. What is the cost of preferred stocks?

• 7,45%

• 8,07%

• 9,63%

• 8,99%

The company operates using equity and debt capital. Debt capital is represented by a 10% long-term loan in the amount of $ 50 thousand. Retained earnings are reflected in the amount of $ 100 thousand. Equity capital is represented by 1 million common shares, that are quoted on the market at a price of $ 0.2. The cost of retained earnings is 16% per annum. The income tax rate is 24%. The risk-free rate is 7%. Beta coefficient of common shares is 1.5. The market risk premium is 8%. Calculate WACC.

• 16,51%

• 14,23%

• 15,84%

• 14,32%