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zhenek [66]
3 years ago
8

Which of these makes this a true statement? When determining the appropriate weights used in calculating a WACC, it should refle

ct
Business
1 answer:
alekssr [168]3 years ago
8 0

Answer:

When determining the appropriate weights used in calculating WACC, there is need to divide the market value of each stock by market value of the company.

Explanation:

Market value of the company is the aggregate of market value of equity, market value of preferred stock and market value of debt. We will divide the market value of each stock by market value of the company in order to obtain the respective weights.                                        

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lana [24]

Answer:

$2,100

Explanation:

Particulars                     Fair market value      Basis        Differences

Inventory                             $60,000              $30,000       $30,000

Account receivables           $40,000              $40,000       $0

Equipment                           $60,000              $80,000      <u> ($20,000)</u>

Taxable gain                                                                           $10,000

Tax rate                                                                                   <u>   21%    </u>

Built in gains tax                                                                     <u>$2,100  </u>

So therefore, the built-in-gains tax that Clampett (Incorporated) will pay in 2021 is $2,100.

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