Beta= 1.3
Debt to equity ratio= 0.4
Market rate of return= 11.6%
= 11.6/100
= 0.116
Tax rate= 32%
= 32/100
= 0.32
Risk free rate= 3.3%
= 3.3/100
= 0.033
Pretax cost of debt= 7.2%
= 7.2/100
= 0.072
The firm's WACC can be calacluated as follows
RS= 0.033+1.3(0.116-0.033)
= 0.033+1.3(0.083)
= 0.033+0.1079
= 0.1409
WACC= (1/1.4)(0.1409)+(2/1.4) (0.072)(1-0.32)
= (0.7142)(0.1409) + (1.4285)(0.072)(0.68)
= 0.1006+0.0699
= 0.1705(100)
= 17.05%
Hence the firm's WACC is 17.05%
Answer:
A
Step-by-step explanation:
Answer:
The simple interest formula is I =PrT
Here I = 378, P = 1800, T = 2
substitute
378 =1800*r*2
r = 378/3600 = .105, i.e. 10.5%
Step-by-step explanation:
Step-by-step explanation:
25 points is the same integer
Answer:
Please make your answer more precise-- If you can message me below and rewrite your question I maybe able to edit and answer your questions.
