I think the answer is 204 million
Answer:
WACC 13.85600%
Explanation:
First we calculate Eastern Pizza CAPM:
risk free = 0.08
market rate = 0.12
premium market = (market rate - risk free) 0.04
beta(non diversifiable risk) = 2
Ke 0.16000
Then we solve for WACC
Ke 0.16000
Equity weight 0.8
Kd 0.08
Debt Weight 0.2
t 0.34
WACC 13.85600%
The company will use the data on eastern Pizza to evualuate project presented to it. Also, it will consider the new tax rate to determinate the tax shield.
For imports:
You import when there is lack of production in your own country
or when another country offers a cheaper price and/or better quality good than your own country's industry
for exports:
production surplus.
The answer is 28.9 because you add all the numbers together and divide by 7. The answer is 28.8 which rounds to 28.9.