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zhuklara [117]
3 years ago
5

CoffeeCarts has a cost of equity of ​, has an effective cost of debt of ​, and is financed with equity and with debt. What is th

is​ firm's WACC?
Business
1 answer:
-Dominant- [34]3 years ago
8 0

Complete Question:

Coffee Carts has a cost of equity of 15.5%, has an effective cost of debt of 3.9%, and is financed 75% with equity and 25% with debt. What is the firm's WACC?

Answer:

The firm's WACC is:

= (0.75 * 0.155) + (0.25 * 0.039)

= 0.11625 + 0.00975

= 0.126

= 12.6%

Explanation:

CoffeeCarts Company's WACC (Weighted Average Cost of Capital) is the average rate that the company is expected to pay to all its security holders (stockholders and debt holders) who financed its assets.  We can calculate CoffeeCarts' WACC by multiplying the cost of each capital source (equity and debt) by its relevant weight, and then adding the products together.  The weight is the proportional percentage of each class  of finance source to the whole.

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Until January 1, 2012, the price for ethanol consumers in the United States was higher than world free-market price by $0.54 per
Bad White [126]

Answer:

Specific tariff

Explanation:

Specific tariff - it is referred to as the charge that is imposed by the US government on any imported item. it is applied per unit items. it can be considered as the tax that the US government levied on import items. it is referred to as a trade barrier focus to reduce the amount of import from tie-up countries

Fir above context, $0.54 as import tax is applied by the US government on imports of ethanol.

8 0
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Which of the following is a multiple meaning word? A) Greed , B) turtle , C) Monitor , D) health
alekssr [168]
(d) health, because it can be used in different ways
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An optimizing consumer will select the consumption bundle in which the :
padilas [110]

Answer:

c. marginal rate of substitution is equal to the relative price ratio of the goods.

Explanation:

we know that the costomer MRS = Px/Py , where x and y are the two goods.

MRS(x,y) = MUx/MUy = Px/Py

Therefore, The marginal rate of substitution is equal to the relative price ratio of the goods.

4 0
3 years ago
Pell Corporation manufactures computers. Assume that Pell allocates manufacturing overhead based on machine hours estimated 10,0
Contact [7]

Answer:

exist 139,200

Explanation:

Assume that Pell allocates manufacturing overhead based on machine hours, estimated 10,000 machine hours and exist 87,000 that implies that the standard cost per machine hour = exist 87,000 / 10,000 = 8.7 exist

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3 years ago
What checks are there on the accuracy of these​ statements? ​ (Select the best choice​ below.)
kkurt [141]

Answer:

The correct answer is B

Explanation:

The checks which are there on the accuracy of the statements are:

1. The corporation needed to hire or require the neutral party, which is known as the auditor in order to check the annual financial statements of the company, and also ensures that the financial statements are to prepared as per GAAP (generally accepted accounting principles). It should also offer the evidence to support the information reliability.

2. The public companies need to use a common or general set of rules and the standard format while making the reports.

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3 years ago
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