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
Arada [10]
3 years ago
13

MicroTech Corporation maintains a capital structure of 40 percent debt and 60 percent common equity. To finance its capital budg

et for next year, the firm will sell 11% coupon bonds at par value (assume no flotation costs). The firm will finance the rest of its capital expenditures with retained earnings. MicroTech expects next year's dividend to be $1.30 per share. Dividends are expected to grow at 7% per year for the foreseeable future. The current market value of MicroTech's common stock is $30 per share. If the firm has a corporate tax rate of 21%, what is its weighted cost of capital for next year?
Business
1 answer:
timama [110]3 years ago
5 0

Answer:

weighted cost of capital for next year is 10.27 %.

Explanation:

Weighted cost of capital = Ke × (E/V) + Kd × (D/V)

Ke = Cost of Equity

    = Dividend Yield + Expected growth rate

    = $1.30 / $30.00 + 0.07

    = 0.11333 or 11.33 %

Kd = Cost of Debt

     = Interest × (1 - tax rate)

     = 11% × ( 1 - 0.21)

     = 8.69 %

Weighted cost of capital =  11.33 % × 60% + 8.69 % × 40%

                                         = 10.27 %

You might be interested in
A salesperson who has anticipated customer doubt about a product and formulated proper responses is ready to:____.
galina1969 [7]

After a salesperson has been able to anticipate customer doubt about a product and then formulated a response to it, the salesperson is then ready to Answer objections.

<h3 /><h3>When does a salesperson answer objections?</h3>

In order to come up with a proper solution to an objected by a customer, a salesperson needs to be prepared for that objection in the first place.

They therefore need to anticipate the objection and the doubt that the customer has and then they can come up with a solution to the customer's problem.

Once they come up with that solution, they shouldn't keep it to themselves but rather they should then present it to the customer to see if it is satisfactory.

In conclusion, the salesperson should answer objections.

Find out more on salespeople strategies at brainly.com/question/25743891

#SPJ1

5 0
2 years ago
Finance
In-s [12.5K]
The answer is  A. "lack" is a negative word and it is the only drawback.
5 0
3 years ago
Describe a successful and unsuccessful attempt at job redesign that you have experienced or observed. What factors contributed t
Alex

Answer:

Explanation:

I have personally seen a successful job redesign where the managers rearranged the tasks and responsibilities of the workers but at the same time made sure that the new tasks fit the employee that was assigned those tasks/responsibilities. The managers went through each employee's skillsets and past experience and moved each employee around in the organization in order for each responsibility to have the most efficient employee handling it within the organization. This allowed everything to continue flowing without any problems.

4 0
3 years ago
I need help please ?
FromTheMoon [43]

Answer

x and y axis representing

Explanation:

3 0
4 years ago
Videoconferencing, instant messaging, electric meetings, and even conference calls are considered __________ technology.
Alisiya [41]

Videoconferencing, instant messaging, electric meetings, and even conference calls are considered. synchronous technology.

You may easily respond to modification requests, quickly develop new concept designs, and simultaneously update numerous elements of an assembly thanks to synchronous technology. Design reuse, working with imported data, making changes—all of these tasks are made quicker and simpler by synchronous technology.

With the help of Solid Edge's synchronous technology, you can quickly develop new concept designs, accept modification requests with ease, and update many elements of an assembly at once. This design flexibility enables you to do away with onerous preplanning and prevent feature failures, rebuild problems, and time-consuming rework. The ability to treat multi-CAD data as native files thanks to synchronous technology enables seamless communication with partners and suppliers.

Learn more about  synchronous technology here

brainly.com/question/14319190

#SPJ4

4 0
1 year ago
Other questions:
  • Burt has a good job title and is recognized and respected at work. Burt’s job boosts his self-esteem and helps him feel confiden
    7·1 answer
  • The following information is available at the end of May:Balance in work in process on May 1 $57,600Direct material costs for Ma
    8·1 answer
  • Suppose buyers of coffee and sugar regard the two goods as complements. Then an increase in the price of coffee will cause a(n)
    9·1 answer
  • On March 4, Year 1, Evan Co. purchased 1,000 shares of LVC common stock at $80 per share. OnSeptember 26, Year 1, Evan received
    8·1 answer
  • In circumstances in which there is a labor union, employees may have to
    10·1 answer
  • You have just determined that the actual number of workstations that will be used on an assembly line is 6, using assembly line
    10·1 answer
  • Which if the following would be debited to the equipment account
    15·2 answers
  • COLORADO HAS A STATE INCOME TAX OF 4.63% ON ALL INCOME AND A SALES TAX OF 2.9%. ARE THESE TAXES PROPORTIONAL, PROGRESSIVE, OR RE
    12·1 answer
  • PLZ HELP!!!! what is a benefit of job shadowing?
    14·2 answers
  • A corporation reported cash of $25,000, total assets of $451,000, and total equity of $154,560 on its balance sheet. its common-
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!