Consider an enterprise with a capital structure consisting of 70 debit and 30quity. if you use the costs of debt and equity of the company from questions 6 and 7, 6.5% by the company’s WACC.
WACC = Weight of debt * Cost of debt + Weight of equity * Cost of Equity
WACC = 70% * 5% + 30% * 10%
WACC = 3.5% + 3%
WACC = 6.5%.
The weighted average cost of capital represents the average cost of attracting an investor, whether that investor is a bondholder or a shareholder. This calculation weights the cost of capital according to the debt and equity used by the WACC company. This presents a clear hurdle for internal projects or potential acquisitions.
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Answer:
The answer is It lacks value compatibility.
Explanation:
Apparently, the new Honda may be slow to diffuse in the market because It lacks value compatibility.
Answer:
a. 8.30 %
b. $918.65
c. 16,60%
Explanation:
a. What is the bond's yield to maturity
Using a Financial Calculator Enter the following respective values and find i.
N = 10×2 = 20
Pmt = $1,000 × 8.6 % / 2 = $43
P/yr = 2
Pv = $ 1,035.77
Fv = $1,000
YTM / i = ?
i = 8.30%
Therefore yield to maturity is 8.30 %
b. What will be the bond's price
Using a Financial Calculator Enter the following respective values and find Pv .
N = 10×2 = 20
Pmt = $1,000 × 8.6 % / 2 = $43
P/yr = 2
Fv = $1,000
YTM / i = 9.90%
Pv = ?
Pv = $ 918.65
Therefore the bond's price is $918.65
c. What is the bond's yield to maturity
bond's yield to maturity - expressed as an APR = 8.30 % × 2
= 16,60%
The answer is E
Because uu have to take a risk of what uu are doing abs uu have to help explain yourself