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scoray [572]
3 years ago
15

Bob's Warehouse has a pre-tax cost of debt of 8.4 percent and an unlevered cost of capital of 14.6 percent. The firm's tax rate

is 37 percent and the cost of equity is 18 percent. What is the firm's debt-equity ratio?
Business
1 answer:
Temka [501]3 years ago
7 0

Answer:

The firm's debt-equity ratio is 0.87

Explanation:

RE = 0.18 = 0.146 + (0.146 - 0.084)*D/E*(1 - 0.37)

0.18 -0.146 = 0.062*DE*0.63

0.034 = 0.03906*DE

D/E = 0.87

Therefore, The firm's debt-equity ratio is 0.87

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DIA [1.3K]

Answer:

134 books

Explanation:

The breakeven point is the number of units to be sold that will make the total sales equivalent with the total cost, such that the company neither makes a profit nor a loss.

Let the number of units sold to break even be c

5c = 1.25c + 500

5c - 1.25c = 500

3.75c = 500

c = 500/3.75

c = 133.33

≈ 134 books

8 0
3 years ago
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Ciara is taking AP Biology and her twin brother, Elon, is in regular Biology. At the end of the year, Ciara earned a B and Elon
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Both Ciara and Elon earned the same number of points toward their GPA.

AP classes are on a 5.0 scale, so a b in an AP class is the same as an A in a regular class
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2 years ago
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The Carter Corporation makes products A and B in a joint process from a single input, R. During a typical production run, 50,000
klemol [59]

Answer: $54,000 per production run

Explanation:

As we are dealing with the decision of whether or not to process the good further, the irrelevant cost would be the cost of producing product B from input R.

This is because this cost has already been incurred to produce product B and so is a sunk cost. Sunk costs are irrelevant to the decision to process further.

30,000 units of B were made from 90,000 units R so the cost of B is:

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<em />

<em>The options here are probably for a variant of this question.</em>

8 0
3 years ago
Tacoda Systems tracks consumers' online activity and delivers specific banners based on that activity. This tracking and ad deli
GaryK [48]

Answer:

Behavioral targeting

Explanation:

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3 years ago
At the equilibrium price, Multiple Choice there are forces that cause price to rise. quantity supplied may exceed quantity deman
Vilka [71]

Answer:

There are no pressures on price to either rise or fall.

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Equilibrium price refers to the market price at which the amount of quantity supplied is exactly equal to the amount of quantity demanded. At this point, the market supply curve and the market demand curve intersect each other.

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