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
nignag [31]
3 years ago
12

Suppose that TipsNToes, Inc.'s capital structure features 40 percent equity, 60 percent debt, and that its before-tax cost of de

bt is 9 percent, while its cost of equity is 15 percent. If the appropriate weighted average tax rate is 34 percent, what will be TipsNToes' WACC?
Business
1 answer:
Anit [1.1K]3 years ago
5 0

Answer:

9.564%

Explanation:

Given that,

Cost of Debt = 9%

Tax Rate = 34%

Weight of Debt = 60%

Cost of Equity = 15%

Weight of Equity = 40%

TipsNToes' WACC:

= [Cost of Debt × (1 - Tax Rate) × Weight of Debt] + [Cost of Equity × Weight of Equity ]

= [9 × (1 - 0.34) × 0.60] + (15 × 0.40)

= 9.564%

Therefore, the TipsNToes' WACC will be 9.564%

You might be interested in
When a pharmaceutical company places an ad in a home and garden magazine for its new arthritis drug, it is using a ________ stra
Usimov [2.4K]

Multichannel strategy is been used by a pharmaceutical company when she places an ad in a home and garden magazine.

<h3>What is multichannel strategy?</h3>

Multi-channel marketing serves as a marketing strategy which involves communicating with customers across multiple, independent channels.

This multichannel strategy. is used to inform potential customers about the company products.

Learn more about multichannel strategy. at;

brainly.com/question/26283663

3 0
2 years ago
Importance of planning such as an Intervention​
Brilliant_brown [7]

Answer:

I NEED MORE INFOOOO

Explanation:

3 0
3 years ago
A common rule is that housing expenses plus other debt payments should not be more than 36% of your monthly income your monthly
timurjin [86]
If your income per month is $4,321 and you aren't able to spend more than 36% of your monthly income on housing... to solve:

($4,321)(0.36) = $1,555.56
7 0
3 years ago
One of the largest changes in the economy over the past several decades is that technological advances have reduced the cost of
umka21 [38]

Explanation:

Over the past several decades, advances in technology, greatly reduced the cost of making computers which resulted in the decline of the equilibrium price of  computers and also resulted in increased equilibrium quantity. The reduction in the computer prices also caused an increase in the consumer surplus.

computer price down -> equilibrium price down

computer price down -> equilibrium quantity up

computer price down -> consumer surplus up

The producer surplus increases due to increase in quantity and at the same time producer surplus decreases due to decrease in price.

computer price down ->  producer surplus down

computer quantity up -> producer surplus up

8 0
3 years ago
Which activities are often required of someone who is in the performing arts?
Delicious77 [7]
<span>Which activities are often required of someone who is in the performing arts?

Answer:</span><span> Choreography is the art of making dances, and the </span>person<span> who practices this art is called a choreographer. (Music and Dance)</span>
3 0
3 years ago
Other questions:
  • Tony wanted to buy a pair of​ binoculars, but not just any brand. He wanted to buy a pair of Steiner​ Nighthunters, just like th
    11·1 answer
  • "Recent research on emotionality produced a mouse with a nonfunctional gene for normal fear behavior." This mouse exhibits behav
    14·1 answer
  • Give examples of needs, wants, and demands that fedex customers demonstrate, differentiating these three concepts.
    7·1 answer
  • You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value
    5·1 answer
  • Bonita Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a
    12·1 answer
  • Which of the following statements is CORRECT?
    13·1 answer
  • Tam is an office manager in charge of ordering and managing the use of office supplies. Lately, the office has been going throug
    7·1 answer
  • The Internal Revenue Service (IRS) provides a toll-free help line for taxpayers to call in and get answers to questions as they
    14·1 answer
  • Ben and Jerry were currently both producing at point A on their production possibilities frontier and then Ben decided he would
    13·1 answer
  • The amount of profit you receive from your investments is usually measured as a percentage of your investment. which of the foll
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!