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Dimas [21]
3 years ago
5

Triangle Enterprises has no debt but can borrow at 8 percent. The firm's WACC is currently 13.2 percent, and there is no corpora

te tax. If the firm converts to 30 percent debt, what will its cost of equity be?
Business
1 answer:
Marina CMI [18]3 years ago
8 0

Answer:

15.43%

Explanation:

Data provided in the question

WACC = 13.2%

Debt = 8%

Convert percentage = 30

So

We assume the WACC be cost of equity

The computation of the cost of equity is shown below:

Cost of equity = 13.2% + (13.2% - 8%) × 30% ÷ (1 - 30%)

                        = 13.2% + 5.2% × 0.428571

                        = 15.43%

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Why the culture of a country might influence the costs of doing business in that country?
jonny [76]

Answer:

Culture of a country can adversely affect the business

Explanation:

The culture of a country affects the costs of doing business in that country in the following ways -

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b) Some countries entertain corruption practices and hence business do not flourish in such countries.

c) The pattern of working of government officials in a country affect the way in which an outsider entrepreneur is affected. The bad practices lower the ease of doing business and hence the business is lost

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3 years ago
Stephanie orders office supplies every month. She is making a because she always bases the order on current inventory levels, wh
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Answer:

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_____ is the most common way to measure the standard of living in different countries. GDP per capita Nominal GDP Real GDP
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The answer is GDP per capita. The Gross Domestic Product just shows the wealth of a nation as  a whole since GDP is the value measure of the all the final goods and services produced over a period of time by a country. GDP per capita shows the average wealth per person (hence involves dividing the GDP of a country by its population).

8 0
3 years ago
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snow_lady [41]

Answer:

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Explanation:

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Average Collection Period = Average Accounts Receivables / (Sales/365)

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8 0
3 years ago
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Answer:

<u>Seniors </u>

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