Answer:
You only want a 10% discount...
500 - 450 = 50
50/500 = 1/10 = .1 = 10%
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%
$1.3 per lemon. I divided 8 by $6 and got 1.3.
Answer:
Step-by-step explanation:
Total Students in Class = 25+ 15=40
Probability= (Number of Girls in Class) ÷ (Total students in Class)
Probability of girl= 15 ÷ 40 = 0.375
