Alpha Geek

(8)

$10/per page/Negotiable

About Alpha Geek

Levels Tought:
University

Expertise:
Accounting,Algebra See all
Accounting,Algebra,Architecture and Design,Art & Design,Biology,Business & Finance,Calculus,Chemistry,Communications,Computer Science,Environmental science,Essay writing,Programming,Social Science,Statistics Hide all
Teaching Since: Apr 2017
Last Sign in: 438 Weeks Ago, 3 Days Ago
Questions Answered: 9562
Tutorials Posted: 9559

Education

  • bachelor in business administration
    Polytechnic State University Sanluis
    Jan-2006 - Nov-2010

  • CPA
    Polytechnic State University
    Jan-2012 - Nov-2016

Experience

  • Professor
    Harvard Square Academy (HS2)
    Mar-2012 - Present

Category > Accounting Posted 22 Apr 2017 My Price 5.00

Cost of Equity

 

Kose, Inc., has a target debt-equity ratio of 0.74. Its WACC is 11 percent, and the tax rate is 32 percent. If Kose’s cost of equity is 14 percent, what is its pretax cost of debt? If instead you know that the aftertax cost of debt is 6 percent, what is the cost of equity?
 
 

Answers

Alpha Geek
(8)
Status NEW Posted 22 Apr 2017 09:04 AM My Price 5.00

-----------

Attachments

file 1492851824-Debt Equity Ratio.docx preview (79 words )
C-----------ase----------- 1:----------- D-----------ebt----------- Eq-----------uit-----------y R-----------ati-----------o =-----------0.6-----------5 -----------Per-----------cen-----------tag-----------e o-----------f D-----------ebt----------- (W-----------d)=----------- 0.-----------65/-----------(1 -----------0.6-----------5)=-----------39.-----------4% ----------- Pe-----------rce-----------nta-----------ge -----------of -----------Equ-----------ity----------- (W-----------e)=-----------1/(-----------1 0-----------.65-----------)=6-----------0.6-----------% -----------Cos-----------t o-----------f E-----------qui-----------ty -----------(Ke-----------) =-----------15%----------- L-----------et -----------Pre-----------tax----------- Co-----------st -----------of -----------Deb-----------t b-----------e K-----------dTa-----------x R-----------ate----------- (T-----------)= -----------35%----------- W-----------ACC-----------=11-----------.2%----------- P-----------utt-----------ing----------- va-----------lue-----------s i-----------n f-----------orm-----------ula----------- WA-----------CC=-----------WeK-----------e W-----------dKd-----------(1------------T),-----------we -----------get----------- 1-----------1.2-----------%=6-----------0.6-----------%*1-----------5% -----------39.-----------4%*-----------Kd*-----------(1------------35%-----------) -----------à1-----------1.2-----------%=9-----------.09-----------% 2-----------5.6-----------1%*-----------KdÃ----------- Kd-----------=8.-----------239-----------% -----------So -----------Pre-----------tax----------- co-----------st -----------of -----------deb-----------t i-----------s 8-----------.23-----------9% ----------- Ca-----------se -----------2: ----------- De-----------bt -----------Equ-----------ity----------- Ra-----------tio----------- =0-----------.65----------- P-----------erc-----------ent-----------age----------- of----------- De-----------bt -----------(Wd-----------) =----------- 0.-----------65/-----------(1
Not Rated(0)
Relevent Questions