Answer:
Option (a) 12.23%
Explanation:
Data provided in the question:
Debt-equity ratio = 0.6
or
Debt = 0.6 × Equity
Cost of equity, ke = 16% = 0.16
Pretax cost of debt, kd = 9% = 0.09
Tax rate = 34% = 0.34
Now,
Firm's WACC = [ weight of equity × ke] + [ Weight of debt × kd × (1-Tax rate) ]
also,
weight of equity = Equity ÷ ( Debt + equity )
= Equity ÷ ( 0.6 × Equity + equity )
= 1 ÷ 1.6
= 0.625
weight of Debt = Debt ÷ ( Debt + equity )
= 0.6 × Equity ÷ ( 0.6 × Equity + equity )
= 0.6 ÷ 1.6
= 0.375
Thus,
Firm's WACC = [ 0.625 × 0.16 ] + [ 0.375 × 0.09 × (1- 0.34) ]
= 0.1 + 0.022275
= 0.122275
or
= 0.122275 × 100%
= 12.2275% ≈ 12.23%
Answer:
37.5%
Explanation:
In this question, we are asked to calculate the Value of the cash return on asset
We use a mathematical representation to do this. Let’s get the formula.
Mathematically:
Cash return on assets = operating cash flows/average total assets
According to the question, the operating cash flow has a value of $150,000. The average total assists have a value of (350,000+450,000)/2 = 800,000/2 = $400,000
We input these values into the formula:
Cash return on assets = 150,000/400,000 = 37.5%
Buy pounds in New York and sell them in London. This will make a profit of $0.05 per pound.
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#SPJ4
Answer:
The answer is: TRUE
Explanation:
The marketing mix of a company includes the four Ps; place, product, price and promotion. The marketing mix defines the company's marketing strategy.
While the marketing plan is how the marketing strategy will be carried out and executed: e.g. how much should a product cost, how will our product be promoted, etc.
D sounds like the best answer
