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Alexandra [31]
3 years ago
12

Johansen Corporation has a target capital structure of 60 percent common stock and 40 percent debt. Its cost of equity is 14 per

cent, and the cost of debt is 8 percent. The relevant tax rate is 30 percent.What is the company's WACC?
Business
1 answer:
Dmitry_Shevchenko [17]3 years ago
8 0

Answer:

10.64%

Explanation:

The computation of the WACC is shown below:

= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of  common stock) × (cost of common stock)

= (0.40 × 8%) × ( 1 - 30%) +  (0.60 × 14%)

= 2.24% + 8.4%

= 10.64%

Simply we multiply the weightage with its capital structure so that the Accurate weighted cost of capital can be calculated

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Jack is a gamer, and every time he plays at a gaming center, he pays five dollars using a card that he recharges electronically
Marina86 [1]

Answer:

It is evident that Jack uses <u>"e-cash"</u> as the mode of payment.

Explanation:

E-cash refers to a type of an electronic payment system, in which on a person's gadget a specific amount of cash is stored and you can use that money later for made available for online transactions.  

There is a benefit of transferring e-cash on internet that it costs less when you compare it with credit card processing charges.

7 0
4 years ago
How should fruits that produce ethylene gas be stored?
artcher [175]

The fruits that produce ethylene gas be stored in paper bags in the lowest refrigerator shelves.

<u>Option: C</u>

<u>Explanation:</u>

The fruits and vegetables produce ethylene gas, a natural plant hormone which improves ripen the fruit. Certain fruits and vegetables are prone to this gas and can spoil ahead of time. If one stored bananas with apples or eggplant with tomatoes then such actions take place.

It is a convenient issue to solve. One just have to know what to perform. The ethylene suppliers make up the rest of the crops. They can be packed together, either in a fruit bowl or in the fridge compartment. Generally speaking, vegetables are ethylene-sensitive while certain fruits do make it into this group.

8 0
4 years ago
Suppose you own a stock that you believe will produce a return of 13% in a good economy and 4% in a poor economy. Given the prob
agasfer [191]

Answer:

The correct answer is letter "B": Expected return.

Explanation:

Expected return is the return an investor expects from an investment given the investment's historical return or probable rates of return under different scenarios. To determine expected returns based on historical data, an investor simply calculates an average of the investment's historical return percentages and then, uses that average as the expected return for the next investment period.

In the example, the expected return would be:

<em>Expected return </em><em>= (return in a good economy + return in a poor economy)/2</em>

<em>Expected return </em><em>= (13% + 4%)/2</em>

<em>Expected return </em><em>= </em><em>8,5%</em>

7 0
3 years ago
You have heard the saying “time is money” If you owned a company, would this saying be important? do you agree? Or disagree and
bija089 [108]

Answer:yes I agree. It is my company and I don’t want to lose money!!

Explanation:

5 0
3 years ago
a procyclical fiscal policy, like those of many state and local governments in the united states, tends to worsen recessions or
natima [27]

Procyclical fiscal policies, like those of many US state and local governments, have the tendency to make recessions or inflation worse.

In order to affect economic conditions, particularly macroeconomic recessions conditions, fiscal policy refers to the use of government spending and fiscal policies tax policies. These include employment, the total demand for goods and services, inflation, and economic expansion.

In order to boost demand and stimulate the economy during a recession, the government may reduce tax rates or increase spending. As an fiscal policies alternative, it might increase rates or reduce spending to slow down the economy and fight inflation.

Comparing fiscal policy to monetary policy, which is implemented by recessions central bankers rather than elected government officials, is common practice.

Learn more about fiscal policies here

brainly.com/question/27250647

#SPJ4

4 0
1 year ago
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