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
Digiron [165]
3 years ago
5

Solve for the weighted average cost of capital. 11.28% = K1 = cost of equity capital for a leveraged firm 1/2 debt-to-total-mark

et-value ratio 8.0% = 1 = before-tax borrowing cost 40.0% -τ - marginal corporate income tax rateA. 8.67 percent B. 8.00 percent C. 7.60 percent D. 7.33 percent
Business
1 answer:
Elena-2011 [213]3 years ago
4 0

Answer:

WACC = Ke(E/V)  + Kd(D/V)(1 - T)

WACC = 11.28(0.50) + 8.0(0.5)(1 - 0.40)

WACC = 5.64  +  2.40

WACC = 8.0%

The  correct answer is B

Explanation:

WACC equals cost of equity multiplied by proportion of equity in the capital structure plus after-tax cost of debt multiplied by proportion of debt in the capital structure. The proportion of equity and debt in the capital structure are 50% respectively. Ke refers to cost of equity, Kd denotes before tax cost of debt, T represents tax rate, E/V denotes proportion of equity in the capital structure and D/V represents proportion of debt in the capital structure.

You might be interested in
Which of the following are examples of demonstrating professional behavior in the workplace? Check all of the boxes that apply.
AfilCa [17]

Answer:

1, 2, 4, 5, 6

Explanation:

6 0
2 years ago
Read 2 more answers
Suppose that a new technology, nuclear fusion, makes it much cheaper to generate power. Would this development cause a shift in
Marrrta [24]

Answer:

Both curves shifts rightwards.

Explanation:

When there is an improvement in the technological process then this will to increase the production level of the goods. Technological advancement increases the potential of an economy which in turn increases the supply of goods at the same price level. Improvement in the technological process increases the economy's productivity.

This will shift the short run aggregate supply curve and long run aggregate supply curve rightwards.

3 0
2 years ago
Maura had to get a $350 emergency loan at a very high interest rate to pay for dental work. The lender did not need her credit h
Norma-Jean [14]

Answer:

It would be A Raina is correct because the loan is a line of credit.

Explanation:

Hope this helps!

8 0
3 years ago
Read 2 more answers
All of the following are permitted investments in individual retirement accounts except: _______
yaroslaw [1]

All of the following are permitted investments in individual retirement accounts except commodity futures.

<h3>What is commodity futures?</h3>

Contracts for the purchase or sale of commodities at a predetermined price and on a specific date in the future are known as commodity futures contracts. Along with financial instruments and currencies, commodities also include things like metals, oil, grains, and animal goods. With a few exceptions, trading in futures contracts must take place on a commodity exchange's trading floor.

The federal government agency that oversees the trading markets for commodity futures, commodity options, and commodity swaps is called the Commodity Futures Trading Commission (CFTC). The National Futures Association (NFA), the independent regulator for anyone who trades futures with the public, requires registration from anyone who advises futures traders or engages in futures trading.

To know more about commodity futures, visit:

brainly.com/question/27818554?

#SPJ4

5 0
1 year ago
People are going to be different. The focus of managers should be to ________. Group of answer choices make sure the practices w
Solnce55 [7]

Answer:

find ways to develop strong relationships with and engage the entire workforce.

Explanation:

People are going to be different. The focus of managers should be to find ways to develop strong relationships with and engage the entire workforce.

A manager can be defined as an individual who is saddled with the responsibility of providing guidance, support, supervision, administrative control, as well as acting as a role model or example to the employees working in an organization by being morally upright.

Generally, managers are typically involved in taking up leadership roles and as such are expected to be build a strong relationship between their employees or subordinates by creating a fair ground for effective communication and sharing of resources and information. Also, they are required to engage their staff members (entire workforce) in the most efficient and effective manner.

5 0
3 years ago
Other questions:
  • You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 8 percent, −15 percent, 19 perc
    6·1 answer
  • The bill for your automobile repairs was $335. The cost for labor was $45 per hour. The cost for materials was $110. How many ho
    15·2 answers
  • Describe why social security is considered a retirement account?
    5·1 answer
  • Park Corporation issued 10-year bonds with a face value of $10,000,000. The face rate of interest on the bonds was 8%, and Park
    11·2 answers
  • A price ceiling creates a shortage when it is set
    8·1 answer
  • Suppose the Herfindahl indexes for industries A, B, and C are 1,200, 5,000, and 7,500 respectively. These data imply that: Group
    9·1 answer
  • Suppose that business travelers and vacationers have the following demand for airline
    13·1 answer
  • The balance sheet of Indian River Electronics Corporation as of December 31, 2020, included 11.75% bonds having a face amount of
    9·1 answer
  • How can the government improve occupational mobility ?
    12·1 answer
  • One of the widely acknowledged problems with using the consumer price index as a measure of the cost of living is that the CPI a
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!