1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
liberstina [14]
3 years ago
13

Caddie Manufacturing has a target debt-equity ratio of .35. Its cost of equity is 12 percent, and its pretax cost of debt is 6 p

ercent. If the tax rate is 21 percent, what is the company’s WACC?
Business
1 answer:
frutty [35]3 years ago
7 0

Answer:

10.12%

Explanation:

The computation of the WACC is shown below:

= Cost of debt × (1 - tax rate) × weight of debt + cost of equity × weight of equity

= 6% × (1 - 0.21) × 0.35 ÷ 1.35 + 12% × 1 ÷ 1.35

= 1.23% + 8.89%

= 10.12%

We simply multiplied the capital structure with each of its weight so that the WACC could come and the same is to be considered

You might be interested in
Which of the following examples is NOT a trust indorsement?
konstantin123 [22]

Answer:

a. Rao indorses his payroll check in blank.

Explanation:

There are many types of indorsements, and out of them one is "Trust Indorsement"

Trust Indorsement is an indorsement to a person who can use the funds for the benefit of the indorser.

Example:

Brian indorses a check to his employee Denny  "Payable to Denny, as agent for Brian", This is an example of trust indorsment.

Option b and c are clearly examples of trust indorsements in which you can notice that Rao has indorsed his lawyer and accountant "as agent for Rao".

Whereas, option a is NOT a trust indorsment but rather a "Blank Indorsement"

Blank Indorsment is an indorsement that doesn't have any particular indorsee and only has a signature on it.

7 0
3 years ago
Ballard Company reported assets of $500 and liabilities of $200. What amount will Ballard's report for stockholders' equity?
Westkost [7]

Answer:

$300

Explanation:

Data provided in the question

Assets reported = $500

Liabilities = $200

So, Stockholder equity is

= Total assets - total liabilities

= $500 - $200

= $300

By applying the accounting equation, that equal to

Total assets = Total liabilities + owners equity

We can find out the stockholder equity by deducting the total liabilities from the total assets

7 0
3 years ago
To generate ideas for new products, some firms will purchase the rights to use another firm's technology. This is known as\
yKpoI14uk [10]

The purchase of the rights to use another firm's technology in the scenario is known as outsourcing.

<h3>What is outsourcing?</h3>

It should be noted that outsourcing simply means the agreement in which a company hires another company in order to be responsible for certain activities.

In this case, this experienced when the firms purchase the rights to use another firm's technology.

Learn more about outsourcing on:

brainly.com/question/4456416

5 0
2 years ago
I WILL MARK BRAINLEIST WHOEVER ANSWERS FIRST!!
Katarina [22]

Answer:

That setting isn't available on edmentum. You can't how you performed on each question, but you can see your final score and the number of questions you got correct and missed.

That would definitely be a great feature if they added it.

Explanation:

8 0
3 years ago
Read 2 more answers
An apple ipad sells for $699.00 on ebay. the markup is 30% on cost. what is the total cost of the ipad sold on ebay?
NNADVOKAT [17]
The total cost of the ipad sold on ebay is $908.70
6 0
3 years ago
Other questions:
  • Which statement defines personality?
    7·1 answer
  • Galaxy Products is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under P
    10·1 answer
  • Which of the following deals with cost-benefit analysis?
    5·2 answers
  • The BMW StreetCarver is a $495 skateboard that features BMW's technology in its wheel suspension, which stabilizes the board's s
    9·1 answer
  • Astor Manufacturing stores hazardous and volatile chemicals in its warehouse. The warehouse has state-of-the-art equipment to ma
    6·1 answer
  • Assume that a college student spends her income on Coke and Snickers. During finals week, the price of a Snickers candy bar is $
    11·1 answer
  • Sometimes events on Salesforce need to be handled by an external system due to the scale or type of process being executed. Cons
    14·1 answer
  • Examine this supply and demand graph for a product. What does the red dot
    7·1 answer
  • What is liberalisation? ​
    10·1 answer
  • Susan works for a firm that has high degrees of formalization in their organizational structure. She understands that one of the
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!