1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lana66690 [7]
3 years ago
11

A firm has a debt-to-equity ratio of 1.0. If it had no debt, its cost of equity would be 12 percent. Its cost of debt is 9 perce

nt. What is its cost of equity if there are no taxes?
Business
1 answer:
Tpy6a [65]3 years ago
6 0

Answer:

15%

Explanation:

The computation of the cost of equity in case of no taxes is shown below:

Cost of equity without tax  = Cost of equity + (cost of equity - cost of debt) × debt equity ratio

where,

Cost of equity = 12%

Cost fo debt = 9%

And, the debt equity ratio = 1

Now placing these values to the above formula,

So, the cost of equity without considering the tax is

= 0.12 + (0.12 - 0.09) × 1

= 0.12 + 0.03 × 1

= 0.12 + 0.03

= 0.15

= 15%

You might be interested in
The price elasticity of demand is equal to the​ ________ in the​ ________ divided by the​ ________ in the​ ________.
Helga [31]

b. percentage​ change; quantity​ demanded; percentage​ change; price

5 0
3 years ago
Lilly Ann went to the pet store with her mother to buy a gerbil. After choosing her gerbil, she and her mother went to look at c
iogann1982 [59]

Answer:

The answer is "b" - Customization

Explanation:

<u>Product Customization</u> is a process of delivering customized goods and services to the customers as per their needs and desire. Customers can either approach a merchant to make certain customizations in a product or personalize the products themselves, exactly the way they want.

It is also known as product personalisation. This is evident in the given situation, as Lilly Ann can customize the cage according to her own preferences.

<u>Standardization</u>

  • Product standardization refers to the process of maintaining uniformity and consistency among the different iterations of a particular good or service that are available in different markets.
  • It is a process of marketing a good or service without making any changes to it
  • Standardization would be correct, if they brand offers the cage without any changes.

<u>Mass customization:</u>

  • Mass customization is a marketing and manufacturing technique which combines the flexibility and personalization of custom-made products with the low unit costs associated with mass production.
  • Other names for mass customization include made-to-order or built-to-order.

<u>Mass production:</u>

  • Mass production is the manufacturing of large quantities of standardized products, often using assembly lines or automation technology.
  • Mass production facilitates the efficient production of a large number of similar products.

<u>Modular design:</u>

  • Modular design is a design approach that creates things out of independent parts with standard interfaces.
  • This allows designs to be customized, upgraded, repaired and for parts to be reused.
7 0
3 years ago
Liz meija is employed as a social worker in a host setting. she is most likely employed in a(n) ______.
olga_2 [115]
Liz Meija is emplayed as a social worker in a host setting. She is mosy likly employed in an agency.
8 0
3 years ago
"A property has been assessed at $40,000. The city tax rate is 10 mills, the county tax rate is 9 mills, and the school board le
melamori03 [73]

Answer:

Amount saved by the owner is $225.

Explanation:

given,

the property has been assessed = $40,000

the city tax rate = 10 mills = 0.001

country tax rate = 9 mills = 0.009

school board levy = 9 mills = 0.008

owner gets homestead tax exemption of = ?

Homestead tax exemption is used to same money from paying tax on their property every year.

homestead tax exemption given is  $25,000

Money saved by owner = $25,000 homestead exemption × county tax rate

                                       = $25000 × 0.009

                                       = $ 225

Amount saved by the owner is $225.

3 0
3 years ago
According to the PLC, the ________ stage is reached when sales plunge to zero, or when they drop to a low level where they conti
Radda [10]
The Incubation because it drop to a low level so it’s E
7 0
3 years ago
Read 2 more answers
Other questions:
  • Why is research and development an integral part of the designing and producing process of an aerospace product? Select the best
    15·2 answers
  • The ____ is an award given by the president of the united states to organizations that apply and are judged to be outstanding in
    10·1 answer
  • Difinition of effective communication
    11·1 answer
  • What are some financial challenges that individuals face when they first live on their own?
    10·1 answer
  • An investor invests 70% of her wealth in a risky asset with an expected rate of return of 15% and a variance of 0.05 and she put
    8·1 answer
  • Jennifer's looking to limit the number of people who see her Google Search Ad for an all-inclusive vacation to Paris. She doesn'
    8·1 answer
  • Garcia Co. sells snowboards. Each snowboard requires direct materials of $119, direct labor of $49, and variable overhead of $64
    8·1 answer
  • Erica transfers land worth $500,000, basis of $100,000, to a newly formed corporation, Robin Corporation, for all of Robin's sto
    15·1 answer
  • In its income statement for the year ended December 31, 2017, Darren Company reported the
    6·1 answer
  • A stock transfer is used to move 400 t-shirts from Plant A to Plant B in the same company code. What is the change in value of i
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!