Answer:
Michalko's weighted-average cost of capital is 9.65 %.
Explanation:
Weighted Average Cost of Capital (WACC) is the return that is required by providers of Long term sources of finance.
WACC = Ke x (E/V) + Kp x (P/V) + Kd x (D/V)
Therefore,
Ke = Cost of Equity
= Return on Risk free Security + Beta x (Return on Market Portfolio - Return on Risk free Security)
= 4.2% + 1.25 × 6.2%
= 11.95 %
E/V = Market Weight of Equity
= $25,700/ ($25,700 + $19,100)
= 0.57
Kd = Cost of Debt
= Market Interest x ( 1 - tax rate)
= 11% × (1 - 0.40)
= 6.60 %
D/V = Market Weight of Debt
= $19,100/($25,700 + $19,100)
= 0.43
Thus,
WACC = Ke x (E/V) + Kd x (D/V)
= 11.95 % × 0.57 + 6.60 % × 0.43
= 9.65 %
Elctricity........as they turn or rotate,magnetic field is produced that produced electricity
Answer:
Following description will make you concept clear an help you.
Explanation:
}{y}[/tex]Answer:
For part A) The <u>entire 2019 is deductible.</u>
For part B) $9,075
Explanation:
FOR PARTE A) we know the equation is:
where y is 12 (which means the entire year) and the number of months will be also 12. So the equation will be:
and the answer will be 24,200 which means the entire year is deductible.
FOR B) the equation to be used will be replaced by 24 (two years) and the number of month will be 9.
so the equation is:
the answer wil be $9,075
