by Brian Leakey | Jun 19, 2023 | finance
Rojo y Negro restaurants, Inc., has a target debt–equity ratio of 50%. Its WACC is 12 percent, and the tax rate is 25 percent.If the cost of equity is 22 %, what is its pretax cost of debt?
by acdsholarSAw3B06o6UN | Jun 19, 2023 | finance
CASE : COST OF CAPITAL AND EXPECTED RETURN 1. SML and WACC. An all- equity is considering the following projects: Project Beta Expected return W 0.8 6 X 0.7 5 Y 1.15 9 Z 1.7 13 The T-bill rate is 3% and the expected return on the market is 7.5% a) Which projects...
by acdsholarSAw3B06o6UN | Jun 19, 2023 | finance
CASE 2: COST OF CAPITAL Given the following information for Huntington Power, find the WACC. Assume the company’s tax rate is 28%. • Debt: 40.000 with 7% coupon bond outstanding, $100 par value, 20 years to maturity, selling for 103% of par; the bonds make...
by acdsholarSAw3B06o6UN | Jun 19, 2023 | finance
CASE 1: GOALS AND GOVERNANCE. Assuming you are the financial manager of a company recently taken over and you now discover is losing €100.000 a week. At the rate things are going, the company will not have any cash left in 6 months to pay its creditors. What are...
by Brian Leakey | Jun 17, 2023 | finance
We want to know if there is a correlation between Housing Starts and National Unemployment RateYou can find the data sets here. https://www.macrotrends.net/charts/economy(1) Create a dataset showing Date / Housing Starts / Unemployment RateScreenshot and paste the...
by Brian Leakey | Jun 17, 2023 | finance
We want to visualize the incidence rate, which is the total observations per 100,000 people to see the “Rate” of Crime per 100,000 people in the year 2019 (1) Download the data file for the global distribution of homicides here...