FIN 620 Long-term Financial Management Homework Assignment 4 Answers – Homeworkmade

DOWNLOAD: FIN 620 Long-term Financial Management Homework Assignment 4 Answers – Homeworkmade

FIN 620 Homework Assignment 4

Problem 16­-12 Calculating WACC

Weston Industries has a debt–equity ratio of 1.5. Its WACC is 11 percent, and its cost of debt is 7 percent. The corporate tax rate is 35 percent. 

Problem 16­-6 Break­Even EBIT and Leverage

Kolby Corp. is comparing two different capital structures. Plan I would result in 900 shares of stock and $65,700 in debt. Plan II would result in 1,900 shares of stock and $29,200 in debt. The interest rate on the debt is 10 percent.