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Sindrei [870]
3 years ago
13

A company has a cost of debt (before tax) of 5.5% and a cost of equity of 12.8%. In addition, the company has a target capital s

tructure of 30% debt and 70% equity, and a marginal income tax rate of 30%. Given this information, what is the WACC for this company
Business
1 answer:
alexira [117]3 years ago
4 0

Answer:

10.12%

Explanation:

Wacc = (D / V)rd (1 - t) + (E / V) re

(D/V) = 0.3

Rd = before tax cost of debt = 5.5%

T = tax rate = 30%

(E / V) = 0.7

Re = marginal cost of equity = 12.8%

= (0.3 x 5.5% × 0.7) + (0.7 x 12.8%) = 1.155% + 8.96% = 10.12%

I hope my answer helps you

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Answer:

True

Explanation:

A LLC is a company that has its own identity and is taxed separated from all owners and investors.

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Sophia's goal is to run her own bakery. What degree might be beneficial for Sophia to pursue in order to reach her goal?
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Answer:

Bachelor's degree in business management

Explanation:

Computer science and mathematics could help her while running the bakery, but won't be the most beneficial. Elementary education wouldn't really be at all helpful when running a business.

Sophia wants to run her own bakery, which is a business. Therefore, a bachelor's degree in business management will be the most helpful for Sophia.

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Draft an inquiry letter for purchase of 10 units of IBM P4 computers and 2 units of Lx 300 Epson printers to Kathmandu Computers
gtnhenbr [62]

Based on writing standards, the inquiry letter for purchase should begin with the sender's address and be written like a formal letter.

<h3>Structures of Letter of Inquiry.</h3>
  • The sender's address should be written at the beginning of the letter, followed by the receiver's address.

  • The letter must contain all the elements of the enquiring item, including their quantities.

  • There must be the date and address of the receiver included.

  • The letter's subject must be written clearly before the letter's content.

  • Ensure you provide the expected salutation at the beginning of the letter.

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  • Provide reasons and inquiry descriptions.

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Hence, in this case, it is concluded that there are specific ways to write a good inquiry letter.

Learn more about Inquiry Letter here: brainly.com/question/4208084

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3 years ago
Who were some of the first big business capitalists in America?
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Explanation:

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Support Department Cost Allocation-Direct Method Charlie's Wood Works produces wood products (e.g., cabinets, tables, picture fr
aivan3 [116]

Answer:

a. 56%

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Explanation:

a. Janitorial costs are allocated based on square feet.

Assembly Department Square feet = 42,560

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Total asset value for both departments = 77,520 + 126,480 = $204,000

Percentage of costs

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8 0
3 years ago
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