Answer:
(10^11)/3
10^6 x 10^5 = 10^11
8/5 x 5/24 = 1/3
so multiply 10^11 and 1/3 together
Beverly hit 14 home runs because 7 minus 21 is 14
The weighted average cost of capital for the firm will be 11.25%.
<h3>How to calculate the WACC?</h3>
The weighted average cost of capital is the calculation of the cost of capital for a firm where each category of capital is weighted.
Here, the weighted average cost of capital will be:
= 0.5(10%)(1 - 15%) + 0.5(14%)
= 0.5(0.1)(0.85) + 0.5(0.14)
= 11.25%
The corporate value at 70% debt when WACC is 11.94% will be:
= (EBIT)(1 - T)/WACC
= (13.24)(1 - 0.15)/0.1194
= $94.26 million
The corporate value at 30% debt when WACC is 11.14% will be:
= (EBIT)(1 - T)/WACC
= (13.24)(1 - 0.15)/0.1114
= $101.02 million
Learn more about WACC on:
brainly.com/question/25566972
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5/1 is the reciprocal of 1/5
