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 > Business & Finance Posted 23 Jun 2017 My Price 5.00

Suppose your firm has decided to use a divisional WACC approach to analyze project

Suppose your firm has decided to use a divisional WACC approach to analyze projects. The firm currently has four divisions, A through D, with average betas for each division of 0.8, 1.2, 1.4, and 1.6, respectively. Assume all current and future projects will be financed with 25 percent debt and 75 percent equity, the current cost of equity (based on an average firm beta of 1.1 and a current risk-free rate of 5 percent) is 12 percent and the after-tax yield on the company's bonds is 10 percent.

 

What will the WACCs be for each division? (Do not round intermediate calculations and round your final answers to 2 decimal places.)

 

  WACCs
Division A %
Division B %
Division C %
Division D %

Answers

Alpha Geek
(8)
Status NEW Posted 23 Jun 2017 08:06 AM My Price 5.00

-----------

Attachments

file 1498206542-482099_1_636337278450964512_WACC1.xlsx preview (29 words )
Di-----------vis-----------ion----------- A -----------cos-----------t o-----------f e-----------qui-----------tyM-----------ark-----------et -----------Pre-----------miu-----------m 1-----------2%=----------- 5%-----------+ma-----------rke-----------t P-----------erm-----------ium-----------*1.-----------1Di-----------vis-----------ion----------- B -----------cos-----------t o-----------f e-----------qui-----------tyD-----------ivi-----------sio-----------n C----------- co-----------st -----------of -----------equ-----------ity-----------Div-----------isi-----------on -----------D c-----------ost----------- of----------- eq-----------uit-----------yWA-----------CC:-----------WAC-----------C o-----------f A-----------WAC-----------C o-----------f B-----------WAC-----------C o-----------f C-----------WAC-----------C o-----------f D----------- -----------
Not Rated(0)