I don’t feel like doing school and I keep getting distracted by this app
Beta= 1.3
Debt to equity ratio= 0.4
Market rate of return= 11.6%
= 11.6/100
= 0.116
Tax rate= 32%
= 32/100
= 0.32
Risk free rate= 3.3%
= 3.3/100
= 0.033
Pretax cost of debt= 7.2%
= 7.2/100
= 0.072
The firm's WACC can be calacluated as follows
RS= 0.033+1.3(0.116-0.033)
= 0.033+1.3(0.083)
= 0.033+0.1079
= 0.1409
WACC= (1/1.4)(0.1409)+(2/1.4) (0.072)(1-0.32)
= (0.7142)(0.1409) + (1.4285)(0.072)(0.68)
= 0.1006+0.0699
= 0.1705(100)
= 17.05%
Hence the firm's WACC is 17.05%
For straight lines the constant rate of change(slope) is a constant(always the same) For every unit moved on the x-axis two more are moved on the y-axis
There are 4 triangles and the formula for the area of a triangle is 1/2BH so 11x10 is 110 and then take half of that and you’ll get 55. Since there are 4 triangles you need to then multiply that by 4 to get 220. And then you have to find the area of the square base which is 11x11 which will come out to 121. So you add the 220 and 121 to get 341.
Well you did not say how many miles you are from Michigan
