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Romashka-Z-Leto [24]
3 years ago
14

The required return on the stock of Moe's Pizza is 12.2 percent and after tax required return on the company's debt is 3.82 perc

ent. The company's market value capital structure consists of 72 percent equity. The company is considering a new project that is less risky than current operations and it feels the risk adjustment factor is minus 2.1 percent. The tax rate is 35 percent. What is the required return for the new project?
Business
1 answer:
GalinKa [24]3 years ago
4 0

Answer:

WACC 7.71894%

Explanation:

WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})

Ke = 0.101

ER = 0.72

Kd = 0.0382

DR = 0.18

t = 0.35

WACC 7.71894%

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Answer:

The correct answer is C

Explanation:

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4 0
3 years ago
Indicate by how much net income in the income statement is higher or lower if the adjustment is not recorded. (Do not round inte
oee [108]

Answer:

1. If the depreciation is not recorded, expenses will be overstated. Net income will therefore be higher by the depreciation amount of $5,400.

2. One June 30, $34,000 was loaned out. Interest is 7%. This interest needs to be apportioned to 6 months in the year as interest revenue:

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4 0
2 years ago
I'll just give you the points lol
AlexFokin [52]

Answer:

i hope this is what you are looking for

Social Security number.

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1 year ago
A manager who makes a situation more efficient could be described as a(an) leader formulator strategist implementer
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3 years ago
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yanalaym [24]

Answer:

an increase in the overall price level but little or no increase in output.

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