### [solution] » this 4 question is my quiz plz give me full makes answer1. A firm has a total va

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The Question

this 4 question is my quiz

plz give me full makes answer

1. A firm has a total value of \$2 million and debt valued at \$850,000. What is the after-tax

weighted average cost of capital if the after tax cost of debt is 8% and the cost of equity is 15%

2. A company has a market value of RM20 million and is financed by RM11 million debt. If the cost

of debt is 10% and the cost of equity is 20%, calculate the company?s weighted average cost of

capital if the company is taxed at 30%.

3. A firm has equity value of \$30 million and debt value of \$40 million, with an after-tax weighted

average cost of capital of 10.5%. What is the cost of equity if the before tax cost of debt is 6%

and the tax rate is 25%? 4.What are the main roles of banks?

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Solution #00070269

##### [solution] » this 4 question is my quiz plz give me full makes answer1. A firm has a total va.zip

This paper was answered on 21-Sep-2019

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