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
Firlakuza [10]
4 years ago
7

Gnomes r us is considering a new project. the company has a debt–equity ratio of .78. the company's cost of equity is 14.6 perce

nt, and the aftertax cost of debt is 7.9 percent. the firm feels that the project is riskier than the company as a whole and that it should use an adjustment factor of +2 percent. what is the company's wacc?
Business
1 answer:
kodGreya [7K]4 years ago
3 0

To look for the company’s WACC for the level of danger in the project. A debt-equity ratio of 0.78 suggests a weight of debt of 0.78/1.78 and a weight of equity of 1/1.80, so the company’s WACC is:

WACC = (0.78/1.78) (0.0780) + (1/1.78) (0.1460)

= 0.03417978 + 0.08202247

WACC = 0.1162 or 11.62%

You might be interested in
Barney extends his lunch break beyond the allotted time. Wilma uses the office telephone for unauthorized personal phone calls.
kaheart [24]

Answer:

Th answer is true

Explanation:

Unethical behavior is doing what is not doing the right thing at the workplace.

5 0
4 years ago
Read 2 more answers
Economists consider both explicit and implicit costs when measuring economic profit
patriot [66]

Explicit and Implicit costs should be considered when measuring economic profit because a business must cover its opportunity costs as well as its out-of-pocket expenses to be truly profitable. Economic profit consists of revenue minus implicit (opportunity) and explicit (monetary) costs. Explicit costs are monetary costs a firm has. Implicit costs are the opportunity costs of a firm’s resources.

7 0
3 years ago
The fact that the words "whiskey makes you sick when you're well," when arranged differently, "Whiskey, when you're sick, makes
disa [49]

Answer: syntactic

Explanation:

The rule gives description of how to order words which help the language parts of it to make sense.

7 0
3 years ago
Read 2 more answers
Which of the following could make it difficult for a student to get a housing or vehicle loan in the future?
AlladinOne [14]
I think the most appropriate answer would be C. As the student should complete their student loan first,abd then take the housing/vehicle loan.



I hope it helped you!
3 0
3 years ago
Read 2 more answers
You want to buy a new sports coupe for $91,500, and the finance office at the dealership has quoted you an APR of 7.3 percent fo
Travka [436]

Answer:

Monthly payment: 1,573.20

effective rate: 7.55%

Explanation:

We need to calculate the quota of an ordinary annuity

The formula for this is as follow:

PV \div \frac{1-(1+r)^{-time} }{rate} = C\\

PV  $91,500.00

time 72 months

rate 0.006083333 the APR is divide into 12 to convert to monthly rate

91500 \div \frac{1-(1+0.0060833)^{-72} }{0.0060833} = C\\

C  $ 1,573.199

The effective rate will be an annual rate equivalent to the APR compounding monthly

(1+ r)^{time} = 1+ r_e

time 12.00

rate 0.00608333333333333

1(1+ 0.00608333333333333)^{12} = 1 + r_e

1.075493 - 1 = re

re = 0.75493 = 7.55%

4 0
3 years ago
Other questions:
  • Bill operates a proprietorship using the cash method of accounting, and this year he received the following: $170 in cash from a
    12·1 answer
  • Who develops the configuration and validation requirements for it products and services within dod?
    10·1 answer
  • The best way to treat a computer-based customer relationship manageent system is to consider it as a/an ___system? A0 Back-ended
    9·2 answers
  • From the graphs, it is evident that the United States imports about 50% more in – than it exports, but exports about 50% more in
    8·1 answer
  • During its 2021 fiscal year, Jacobsen corporation reported before tax income of 620,000
    14·1 answer
  • ___________ is a technique to analyze and sequence tasks involved in completing a project, to estimate the time needed to comple
    7·2 answers
  • Jamie and Maria invested all of their savings in a small pizzeria they opened outside the University of Western Kentucky. They o
    15·1 answer
  • What is a collateral
    7·2 answers
  • Which of the following is an example of a vertical merger? Northwestern Idaho University merging with McDonald's. Northwestern I
    8·2 answers
  • In the context of the supply chain process, blank______ consists of the processes needed to operate an existing supply chain str
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!