Burdened by Homework? Let us write your essays and assignments Order This NowFor the following questions, please make these assumptions:
* The 10-Year Treasury is yielding 3.00%
* The Equity Risk Premium is 5.00%
* Bonds trade at a premium to the risk-free rate of return as follows:
Rating Premium Over Treasuries
HCA is a provider of hospital and community-based medical services. It has a market capitalization of $44 billion and outstanding debts of $66 billion. Its beta is 0.78. Its debt is rated BB. Its tax rate is 30%.
Given this information, what is the WACC, rounded to the nearest tenth of one percent?
Your aunt needs your help. She has to decide whether to take a buyout from her company on her pension plan. She can either keep the pension plan and receive $20,000 per year for life or she can take a one-time payout of $400,000. She believes that her diversified investment portfolio is such that she should value money at 5% per year. What would you recommend?
a) Keep the pension because it is worth more to her
B) Take the buyout; its a better deal
C) They are economically identical, so either way is the same financially
D) It depends on who wins the 2018 World Series
Burdened by Homework? Let us write your essays and assignments Order This Now