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
mr Goodwill [35]
4 years ago
11

Pearson Motors has a target capital structure of 30% debt and 70% common equity, with no preferred stock. The yield to maturity

on the company's outstanding bonds is 12%, and its tax rate is 25%. Pearson's CFO estimates that the company's WACC is 12.50%. What is Pearson's cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places.
Business
1 answer:
serg [7]4 years ago
6 0

Answer: 14%

Explanation: The average rate expected by all of the security holders of a company in return of investing in it is called WACC.

formula to compute WACC :-

WACC= \left ( weight\:of\:debt\times cost\:of\:debt \right )+\:\left ( weight\:of\:equity\times cost\:of\:equity \right )

12.5\%= \left ( 30\%\times 9\% )+\:\left ( 70\%\times cost\:of\:equity \right )

so,

cost of equity = 14 %

You might be interested in
suggest promotional tools which the company can use to help it develop a completely new image for its product
vivado [14]

Answer:

The 4 Ps of marketing are product, price, place and promotion. All four of these elements combine to make a successful marketing strategy. Promotion looks to communicate the company’s message across to the consumer. The four main tools of promotion are advertising, sales promotion, public relation and direct marketing.

Thank you hope it is helpful if it is helpful plz mark me as brainlist

3 0
3 years ago
The table shows the cost of various expenses Rosario expects to pay for one year at a private four-year college while living on
Ganezh [65]
<span><span>The answer is A. 50,505.00$ </span></span>

6 0
4 years ago
Read 2 more answers
In which stage of the product life cycle should product strategy focus on process modifications as the product is being​ "fine-t
stellarik [79]

Answer:

The answer is introduction stage

Explanation:

Product life-cycle is the life of a product from its introduction to its death or non-existence. It has four stages - Introduction, growth, maturity and decline.

Product strategy focus on process modifications as the product is being​ "fine-tuned" for the​ market should happen at the introduction stage because here the product is entering for the first time. The product should be fine-tuned at this stage for customers to have good perception about the product.

7 0
3 years ago
Assume that chips cost $1 and soda costs $2. If the consumer has $14, the combination of goods that would maximize his utility p
ddd [48]

Answer:

The remaining amount that the consumer would have would be $11

Explanation:

If the person originally had $14 but spent $3 all together on their items they would remain with the amount of $11.

(I hope this helps, I'm not sure if it's exactly what you were looking for but it's something so...)

3 0
3 years ago
The following accounts were abstracted from Oriole Company's unadjusted trial balance at December 31, 2020: Debit Credit Account
Ronch [10]

Answer:

$52,710

Explanation:

Calculation for allowance for uncollectible accounts credit balance

Using this formula

Allowance for uncollectible accounts credit balance=Estimated gross uncollectible accounts receivable *Accounts receivable

Let plug in the formula

Allowance for uncollectible accounts credit balance=7%* $753,000

Allowance for uncollectible accounts credit balance=$52,710

Therefore After adjustment at December 31, 2020, the allowance for uncollectible accounts should have a credit balance of $52,710

7 0
3 years ago
Other questions:
  • Choose one possible revision suggestion for the previous follow-up letter.
    8·1 answer
  • At Infosoft Solutions, employees are encouraged to take care of their problems by working with one another and with customers, u
    6·1 answer
  • What makes buying a foreclosed property risky? Give at least two
    14·1 answer
  • What type of engineer is interested in designing, developing, and building different machines, devices, and tools?
    13·1 answer
  • QUESTION 23
    14·1 answer
  • Bird Brain Co. reported net income of $46,300 for the year ended December 31, 2018. January 1 balances in accounts receivable an
    8·1 answer
  • A company is targeting consumers who have not purchased its products for several months. It is segmenting the consumer market ba
    15·1 answer
  • As part of the calculation for cost of goods sold it is necessary to determine the value of goods on hand, termed merchandise in
    10·1 answer
  • One of the following statements is false. Which is it? i the time horizon and size of time bucket for the master production sche
    13·1 answer
  • On october 1, sam reported the formal marketing/sales event he has scheduled for 9 a.m. on november 19. luckily, before he had f
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!