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
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%

You might be interested in
Moon Micro is a small manufacturer of servers that currently builds its entire product in Santa Clara, California. As the market
AfilCa [17]

Answer:

Answer for below mentioned points is in the attached image :

Use a decision tree to determine whether Moon should add capacity to its Santa Clara plant or if it should outsource to Molectron. What are some other factors that we have not discussed that would affect this decision?

Explanation:

3 0
3 years ago
My account is not working right, I need someone to get ahold of me or fix it. We ordered brainly plus and I've been charged but
Harman [31]

Answer: Have you tried to restart the app or browser? How long ago did you purchase it? If it was today or yesterday you may need to wait a bit.

Explanation: It takes time for the transaction to go through. Trust me, my mom works at a bank.

7 0
2 years ago
Read 2 more answers
Gabriel had no idea how consumers would respond to a survey about attitudes toward a program opening up space travel to private
Darina [25.2K]

Gabriel had no idea how consumers would respond to a survey about attitudes toward a program opening up space travel to private citizens. He could use a survey with open-ended questions.

Space travel to private citizens:

On June 7, 2019, NASA said that beginning in 2020, it intends to start permitting commercial astronauts to go to the International Space Station using the SpaceX Crew Dragon and the Boeing Starliner spacecraft for public astronauts, with a planned daily cost of $35,000 USD.

Three paying clients and a retired NASA astronaut set off for the International Space Station. The trip is the first to visit the space station with only private persons aboard, and it is also the first time NASA has worked with other organizations to coordinate a space tourism visit.

Learn more about space travel to private citizens here:

brainly.com/question/14990057

#SPJ4

4 0
2 years ago
Cor-Eng Partnership was formed on January 2, 20X1. Under the partnership agreement, each partner has an equal initial capital ba
inessss [21]

Answer:

Cor's share of Cor-Eng's 20X1 net income is $60,000

Explanation:

                                Partnership Table

                                               Cor$        Eng$        Total$

Ratio                                         60%        40%         100%

Assets                                  60,000      20,000     80,000

Goodwill                                                40,000      40,000

Initial Capital balance        60,000     60,000     120,000

Add: Net income                  15,000       10,000     25,000

Less: Drawing                      -3,000        -9,000     -12,000

Year End balance                 72,000      61,000    133,000

6 0
2 years ago
One advantage of automatic stabilizers over discretionary fiscal policy is that automatic stabilizers do not produce a cyclical
Novay_Z [31]

The best answer for this statement would be:

are not subject to the timing problems of discretionary fiscal policy

<span>There is a fact that automatic stabilizers increase the chance of depleting the budget deficits, even in times of recessions. While discretionary fiscal policy is more of identifying the lags to enact the change in fiscal policy.</span>

4 0
3 years ago
Other questions:
  • Duverger’s Law states that a) proportional representation systems result in two-party systems. b) one-party systems are the resu
    8·1 answer
  • Uber’s strategy has been to break these regulations, establishing its service first, and then fighting attempts by regulators to
    11·1 answer
  • Which of the following factors, by itself, requires a corporation to comply with the reporting requirements of the Securities Ex
    8·1 answer
  • Using the CAPM, compute the cost of equity capital for the lodging division at the target leverage ratio for the division. Expla
    6·1 answer
  • Anheuser-Busch, InBev NV, the maker of Bud Light, proposed a merger with Modelo, the maker of Corona. At the time of the propose
    13·1 answer
  • A young chef is considering opening his own sushi bar. To do so, he would have to quit his current job, which pays $20,000 a yea
    9·1 answer
  • Which of the following comments is most likely to be made in a group characterized by groupthink?
    7·1 answer
  • Define the term creativity​
    12·2 answers
  • Which of the following is NOT example of Capital used to produce goods?
    13·1 answer
  • A factory costs $460,000. You forecast that it will produce cash inflows of $150,000 in year 1, $210,000 in year 2, and $360,000
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!