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monitta
2 years ago
14

Inc.'s capital structure features 40 percent equity, 60 percent debt, and that its before-tax cost of debt is 9 percent, while i

ts cost of equity is 15 percent.
What will be TapDance’s WACC? (Round your answer to 2 decimal places.)
WACC %.
Business
1 answer:
Alex787 [66]2 years ago
3 0

Answer:

WACC = ke(E/V) + Kd(D/V)

WACC = 15(0.40) + 9(0.60)

WACC = 6 + 5.4

WACC = 11.4%

Explanation:

WACC is a function of cost of equity multiplied by the proportion of equity in the capital structure plus cost of debt multiplied by the proportion of debt in the capital structure. The proportion of equity in the capital is expressed as E/V (0.40) while the proportion of debt in the capital structure is expressed as D/V (0.60).

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Compute the selling price if variable costs are ​$16 per unit. Determine the formula used to calculate the selling price.
dezoksy [38]

Answer: $40

Explanation:

Selling price can be calculated through the contribution margin equation;

Contribution margin = (Selling Price - Variable cost) / Selling Price

Contribution margin = Fixed costs/break-even point

= 660,000/1,100,000

= 60%

60% = (Selling Price - 16) / Selling Price

Selling price * 60% = Selling price - 16

16 = Selling price - (0.6 * selling price)

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3 0
2 years ago
a simplified alternative to capitalization of net income that does not take into account bad debts or expenses is called?
mestny [16]

<u>Answer:</u>

The correct answer for this is: Gross Rent Multiplier.

<u>Explanation:</u>

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Gross Rent Multiplier is used to find the approximate net incomes that does not include any bad debts or expenses.

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6 0
2 years ago
Conclusions and recommendations are the most widely read sections of any report. Conclusions summarize a nd explain your finding
butalik [34]

Answer:

a. When drawing conclusions, make sure you summarize and explain your findings.

b. Tips for writing recommendations:

A. Your recommendations should always be the result of prior logical analysis.

B. Your recommendations should never be in the form of a command.

Explanation:

A good conclusion touches the theme or main topic, summarizes the main points, and connects with the introduction, but with a sense of closure.  Conclusions should be sound and logical.  Irrelevant conclusions are annoying to the senses.  Without a conclusion, the report will sound like one illogical move without clear direction and purpose.

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6 0
3 years ago
Big Canyon Enterprises has bonds on the market making annual payments, with 12 years to maturity, a par value of $1,000, and a p
PSYCHO15rus [73]

Answer:

6.32%

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Therefore, the coupon rate on the bonds must be 6.32%.

4 0
3 years ago
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