  (Solution) 14-10. Sixx AM Manufacturing Has A Target Debt-equity Ratio Of .45. Its Cost Of Equity Is 13% And Its Cost Of Debt Is 6%. If The Tax Rate Is 35%, | Snapessays.com

(Solution) 14-10. Sixx AM Manufacturing has a target debt-equity ratio of .45. Its cost of equity is 13% and its cost of debt is 6%. If the tax rate is 35%,

14-10. Sixx AM Manufacturing has a target debt-equity ratio of .45. Its cost of equity is 13% and its cost of debt is 6%. If the tax rate is 35%, what is the company's

WACC?

A) 9.18%

B) 10.18%

C) 11.18%

D) 12.18%

14-14A. Paget, Inc, has a target debit-equity ratio of 1.25. Its WACC is 9.2%, and the tax rate is 35%.

If the company's cost of equity is 14%, what is its pretax cost of debt?

A) 8.25%

B) 9.25%

C) 10.25%

D)11.25%

14-14B. If instead you know that the aftertax cost of debt is 6.8%, what is the cost of equity?

A) 12.2%

B) 13.2%

C) 14.2%

D) 15.2%

14-17. Project Beta IRR

W .60 8.8%

X .85 9.5

Y 1.15 11.9

Z 1.45 15.0

14-17 A: Which projects have a higher expected return than the firm’s 11 percent cost of capital?

14-17 B: Which projects should be accepted?

14-17 C: Which projects would be incorrectly accepted or rejected if the firm’s overall cost of capital were used as a hurdle rate?

Solution details:
STATUS
QUALITY
Approved

This question was answered on: May 23, 2022 Solution~00021147602447.zip (25.37 KB)

This attachment is locked

Our expert Writers have done this assignment before, you can reorder for a fresh, original and plagiarism-free copy and it will be redone much faster (Deadline assured. Flexible pricing. TurnItIn Report provided)

STATUS

QUALITY

Approved

May 23, 2022

EXPERT

Tutor