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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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A grocery store has three open checkout lanes. On average, 45 shoppers arrive at these lanes per hour. The coefficient of variat
nadya68 [22]

Answer:

A.  

0.833

Explanation:

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6 0
3 years ago
Novak Corp. has 44,000 shares of $11 par value common stock outstanding. It declares a 11% stock dividend on December 1 when the
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Answer:

in my best defence, the answer is 22

Explanation:

3 0
3 years ago
McLeod Inc. is considering an investment that has an expected return of 8% and a standard deviation of 10%. What is the investme
Rudik [331]

Answer:

the investment's coefficient of variation is 1.25.

Explanation:

The  coefficient of variation relates the units of return to the units of risk. It expresses the unit of risk per 1% of return as follows :

<em>Coefficient of Variation = Standard Deviation ÷ Return</em>

Therefore,

Coefficient of Variation = 10 ÷ 8

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7 0
3 years ago
Treasury stock is:
VashaNatasha [74]

Answer:

a. Common stock acquired by the company in the open market & recorded as negative equity

Explanation:

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7 0
3 years ago
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