Questions
Waterdeep Adventure Travel has an unlevered cost of equity of13.4%, and a cost of debt...

Waterdeep Adventure Travel has an unlevered cost of equity of 13.4%, and a cost of debt of 7.8%. Their tax rate is 22%, and they maintain a capital structure of 33% debt and the rest equity. They are considering giving cave exploration tours to their menu of adventure vacations. Buying the needed equipment would cost $72,317, and would bring in $28,952 one year from today, and $81,488 two years from today. What is the NPV of this project, using the WACC method, if they invest today?


In: Finance

Waterdeep Adventure Travel has an unlevered cost of equity of 11.2%, and a cost of debt...

Waterdeep Adventure Travel has an unlevered cost of equity of 11.2%, and a cost of debt of 6.9%. Their tax rate is 35%, and they maintain a capital structure of 39% debt and the rest equity. They are considering giving cave exploration tours to their menu of adventure vacations. Buying the needed equipment would cost $68,080, and would bring in $38,285 one year from today, and $84,455 two years from today. What is the NPV of this project, using the WACC method, if they invest today?

In: Finance

Waterdeep Adventure Travel has an unlevered cost of equity of 19.5%, and a cost of debt...

Waterdeep Adventure Travel has an unlevered cost of equity of 19.5%, and a cost of debt of 6.1%. Their tax rate is 36%, and they maintain a capital structure of 58% debt and the rest equity. They are considering giving cave exploration tours to their menu of adventure vacations. Buying the needed equipment would cost $50,902, and would bring in $34,127 one year from today, and $86,583 two years from today. What is the NPV of this project, using the WACC method, if they invest today?

Please give your answer to the nearest dollar.

In: Finance

TheOutlet Mall has a cost of equity of 12.9 percent, a pretax cost ofdebt...

The Outlet Mall has a cost of equity of 12.9 percent, a pretax cost of debt of 6.5 percent, and a return on assets of 11.3 percent. Ignore taxes. What is the debt-equity ratio?

  • 0.42

  • 0.33

  • 3.00

  • 2.54

  • 0.39


In: Finance

Which item would a shipping department cost pool use as a cost driver?


Which item would a shipping department cost pool use as a cost driver? 

  • Number of sales orders 

  • Number of containers 

  • Number of units 

  • Number of machine hours

In: Accounting

The current cost of graduate school tuition is $15,771 per year. The cost of tuition is...

The current cost of graduate school tuition is $15,771 per year.
The cost of tuition is rising at 7% per year.
You plan to attend graduate school for 3 years starting 3 years from now.

How much do you have to invest today if your savings account earns 2.53% APR compounded annually to just fund your tuition?

In: Finance

The current cost of graduate school tuition is $19,203 per year. The cost of tuition is...

The current cost of graduate school tuition is $19,203 per year. The cost of tuition is rising at 6% per year. You plan to attend graduate school for 3 years starting 4 years from now. How much do you have to invest today if your savings account earns 3.95% APR compounded annually to just fund your tuition?

In: Finance

The current cost of graduate school tuition is $18,313 per year. The cost of tuition is...

The current cost of graduate school tuition is $18,313 per year.
The cost of tuition is rising at 8% per year.
You plan to attend graduate school for 3 years starting 3 years from now.

How much do you have to invest today if your savings account earns 4.88% APR compounded annually to just fund your tuition?

In: Finance

The current cost of graduate school tuition is $19,771 per year. The cost of tuition is...

The current cost of graduate school tuition is $19,771 per year. The cost of tuition is rising at 7% per year. You plan to attend graduate school for 3 years starting 2 years from now. How much do you have to invest today if your savings account earns 4.74% APR compounded annually to just fund your tuition?

In: Finance

how to convert monthly equity cost of capital to annually equity cost of capital

how to convert monthly equity cost of capital to annually equity cost of capital

In: Finance