Given the followind data, please calculate Microsoft's tax effected WACC Enterprise Value $2,125 Billion Total Debt $325 Billion Debt Interest Rate 3% Market Cap $1,800 Billion Cost of Equity 6% Tax Rate 20%
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Given the followind data, please calculate Microsoft's tax effected WACC
| Enterprise Value | $2,125 Billion |
| Total Debt | $325 Billion |
| Debt Interest Rate | 3% |
| Market Cap | $1,800 Billion |
| 6% | |
| Tax Rate | 20% |
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- You have been presented with the following information from Bogus Ltd. Source of Capital Book Value Market Value Before-tax cost Long-term debt R11 823 158 R7 389 474 8% Preference shares R118 232 R177 347 13% Ordinary shares R3 103 579 R8 867 368 17% Total R15 044 969 R16 434 189 Assume Bogus Ltd has an average tax rate of 27% Required: a) Calculate the WACC based on the book value weights. Round off answers to two decimal places b) Compare the book value and market value method of calculating the WACC.Calculate WACC? Given corporate tax 35%. Debt MV 20m (RRR6%) Preferred stock MV 10m (RRR8) Common stock MV 50m (RRR12)The Diversified Portfolio Corporation provides investment advice to customers. A condensed income statement for the year ended December 31, 2024, appears below: Service revenue Operating expenses Income before income taxes. Income tax expense Net income $ 980,000 740,000 240,000 60,000 $ 180,000 The following balance sheet information also available: 12/31/2024 $ 347,000 128,000 78,000 14,000 12/31/2023 $ 74,000 104,000 64,000 23,000 Cash Accounts receivable Accrued liabilities (for operating expenses) Income taxes payable In addition, the following transactions took place during the year: 1. Common stock was issued for $108,000 in cash. 2. Long-term investments were sold for $54,000 in cash. The original cost of the investments also was $54,000. 3. $84,000 in cash dividends was paid to shareholders. 4. The company has no outstanding debt, other than those payables listed above. 5. Operating expenses include $34,000 in depreciation expense. Required: 1. Prepare a statement of cash…
- 2. 1. 1. Given the most recent financial statements for FY2023. Sales for FY2024 are expected to grow by 10 percent. The following assumption must be held in the pro forma financial statements. The tax rate (percentage), the interest expense ($ amount), and the dividend payout ratio (percentage) will remain constant. COGS, SGA, Depreciation, all current asset accounts, Net PPE, intangibles, other assets, and accounts payable increase spontaneously with sales. Calculate the pro forma value for total assets for FY24 if the firm operates at full capacity and no new debt or equity is issued. (Enter percentages as decimals and round to 4 decimals) 2. Given the most recent financial statements for FY2023. Sales for FY2024 are expected to grow by 10 percent. The following assumption must be held in the pro forma financial statements. The tax rate (percentage), the interest expense ($ amount), and the dividend payout ratio…If the state tax rate is 20% and the federal tax rate is 30%, what is the total effective tax rate? a. 34% b. 50% c. 44% d. 37% 2. Holding all other variables constant, which of the following would increase return on equity? An increase in _____________. a. the tax rate b. the equity ratio (equity/total assets) c. total assets d. total asset turnoverYou are given the financial information for the Unic Company: Earnings Before Interest and Tax (EBIT) = $126.58 Corporate tax rate (TC) = 0.21 Debt (D) = $500 Unlevered cost of capital (RU) = 0.20 The cost of debt capital is 10 percent. Question: Determine the value of Unic Company equity? Determine the cost of equity capital for Unic Company? Determine the WACC for Unic Company?
- 15. Vodacom SA has a dividend payout ratio of 70%. The personal tax rate on dividend income is 20 %, and the personal tax rate on capital gains is 11%. TC= (Corporate tax rate) = 28%; and TP= Personal tax rate on interest income = 22%: Calculate the relative tax advantage of debt with personal and corporate taxes. a. 1.31 b. 1.28 c. 0.78 d. 0.60 e. 0.17Samuel Corp. provides the following information: EBIT = $386.50 Tax (TC ) = 21% Debt = $700 RU = 10% Question: What is the value of Samuel’s equity?Consider the following data for the firms Acme and Apex: Equity ($ million) Debt ($ million) ROC Cost of Capital Acme 290 145 17% 9% Apex 1,450 483 15% 10% a. Calculate the economic value added for Acme and Apex (round to 2 decimal places). Economic value added for Acme $? million Economic value added for Apex $? million b. Calculate the economic value added per dollar of invested capital for Acme and Apex (round to 2 decimal places)? Economic value added for Acme per dollar Economic value added for Apex per dollar
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