INFORMATION The optimal capital share of Yoko Limited is 60% ordinary share, 30% preference share and 10% debt financing. The pre-tax costs of capital for ordinary shares, preference shares and debt are 19%, 16% and 20% respectively. The tax rate is 27%.

OSA Company has the following values of interest-bearing debt and common equity capital: Financing Source   Dollar Amount   Interest Rate   Cost of CapitalShort-term loan              $200,000         12%Long-term loan               $200,000         14%Equity capital                  $600,000                                    22% OSI is in the 30 percent average tax bracket. A. Calculate the after-tax weighted average cost of capital for OSI. B. Given that OSI's EBIT is $300,000, compute its EVA. C. Did the venture build or destroy value? Explain. Make sure to show all the formulas and calculations in addition to any assumption needed.

Suppose the weighted average cost of capital of the Oriole Company is 10 percent. If Oriole has a capital structure that is 50 percent debt and 50 percent equity, its before-tax cost of debt is 7 percent, and its marginal tax rate is 20 percent, then its cost of equity capital is closest to: a. 10.40 percent. b. 12.40 percent. c. 8.40 percent. d. 14.40 percent.

The L Corp. has determined that its optimal capital structure consists of 40 percent debt and 60 percent equity. Calculate the firm’s weighted average cost of capital (WACC). Assume external equity for cost of equity calculation. rd before Tax = 8% ,  Tax = 40% ,  P0 = $40,  Growth = 6% , D0 = $3.00, Flotation cost = 7% of market price    10.64%   13.05%   7.24%   8.61%   9.83%

XYZ Inc. has a target capital structure of 60% equity and 40% debt. Its cost of equity is 9% and the before-tax cost of debt is 5%. The relevant tax rate is 21%. Calculate the WACC for the firm. (Enter percentages as decimals and round to 4 decimals)

Bulldogs Inc., which is funded by debt and ordinary equity, has a debt to equity ratio of 100%. The weighted average cost of capital of the firm is 20%. Using the capital asset pricing model, the cost of equity is determined to be 30%. If the before-tax cost of debt is 16%, what is the applicable tax rate of Bulldogs Inc.?  a. 37.50% b. 35.70% c. 25.55% d. 25.80%

CostaCap Corporation's capital structure (market value weights) consists of 50% common stock, 10% preferred stock, and 40% debt.  The company's cost of common equity is 8%, it's cost of preferred equity is 5%, and it's pretax cost of debt is 3%.  Costacap's tax rate is 25%.  What is Costacap's weighted average cost of capital (WACC)? Group of answer choices 4.8% 5.1% 5.4% 5.7%

The target capital structure for QM Industries is 40 percent common stock, 10 percent preferred stock, and 50 percent debt. If the cost of common stock for the firm is 18 percent, the cost of preferred stock is 10 percent, and before tax cost of debt is 8 percent, and the firm's tax rate is 35 percent, what is QM's weighted average cost of capital (WACC)? a.  8.80% b. 18.80% c.  8.00% d. 10.80%

Suppose that TapDance, Inc.'s capital structure features 65 percent equity, 35 percent debt, and that its before-tax cost of debt is 10 percent, while its cost of equity is 15 percent. The appropriate weighted average tax rate is 21 percent. What will be TapDance's WACC? (Round your answer to 2 decimal places.) WACC %

Majan Mining has found that its cost of common equity capital is 17 percent and its cost of debt capital is 6 percent. If the firm is financed with OMR 3,000,000 of common shares (market value) and OMR 2,000,000 of debt, then what is the after-tax weighted average cost of capital for Majan Mining if it is subject to a 40 percent marginal tax rate? Select one: O a. 11.50 b. 14.57 O c. 11.64 O d. None of these