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kherson [118]
3 years ago
12

Sapp Trucking’s balance sheet shows a total of noncallable $45 million long-term debt with a coupon rate of 7.00% and a yield to

maturity of 6.00%. This debt currently has a market value of $50 million. The balance sheet also shows that the company has 10 million shares of common stock, and the book value of the common equity (common stock plus retained earnings) is $65 million. The current stock price is $22.50 per share; stockholders' required return, rs, is 14.00%; and the firm's tax rate is 40%. What is the WACC of the firm based on the market values of debt and equity?

Business
1 answer:
Vedmedyk [2.9K]3 years ago
4 0

Answer:

Please see attachment

Explanation:

Please see attachment

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Changes in financial reporting methods unquestionably will alter the resulting measures of financial positions reported in finan
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a

Explanation:

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. An externality is: A. the costs that parties incur in the process of agreeing and following through on a bargain. B. the uncom
Verizon [17]

Answer:

The correct answer is B. the uncompensated impact of one person's actions on the well-being of a bystander.

Explanation:

A  transaction involves two parties, for example,  consumer and the seller, who are referred to as the first and second parties. Any other party that is not related to the transaction is referred to as a third party. A externality is a cost or gain  that is suffered by a third party as a consequence of an economic transaction.

In others words ,  an externatily is an uncompensated impact of one person's actions on the well-being of a bystander.

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3 years ago
What do geographers call the unequal distribution of wealth and resources in a specific geographic area?
Lina20 [59]
It is called spatial inequality. Resource distribution is the geographical occurrence or spatial arrangement of resources on earth( where resources are located). it is the distribution of resources such as land, water minerals, fuel and wealth among other corresponding geographic entities. The distribution of resources depends upon many factors such as land, climate and altitude which may be unequal because these factors differ from place to place on the earth.
4 0
3 years ago
Read 2 more answers
Suppose the real rate is 2.5 percent and the inflation rate is 4.1 percent. what rate would you expect to see on a treasury bill
Ganezh [65]
Thank you for posting your question here at brainly. The rate that would you expect to see on a treasury bill is <span>3.67%. Below is the solution:

</span><span>(1+R)= (1+r)*(1+h)
</span><span>R=((1+0.025)*(1+0.09))-1
</span><span>H=3.67%</span>
8 0
3 years ago
Machida Inc. is considering a project that is expected to produce cash inflows of $3,200 per year in years 1-4, with a final cas
PolarNik [594]

Answer:

The NPV = $1578.185602 rounded off to $1578.19

As the NPV is positive, the project should be accepted.

Explanation:

The Net Present Value or NPV is a tool used to evaluate projects. It is used with various other tools to decide whether to undertake a project or not. To calculate the Net Present Value or NPV, we take the present value of the cash inflows provided by the project and deduct the initial cost of the project.  If the NPV is positive, we should proceed with the project and vice versa.

NPV = CF1 / (1+r)  +  CF2 / (1+r)^2  +  ...  + CFn / (1+r)^n  -  Initial Cost

Where,

  • CF1, CF2, ... represents cash flow in Year 1, Year 2 and so on.
  • r is the required rate of return

NPV = 3200 / (1+0.17)  +  3200 (1+0.17)^2  +  3200 (1+0.17)^3  +  

3200 (1+0.17)^4  +  5700 (1+0.17)^5  -  9800

NPV = $1578.185602 rounded off to $1578.19

4 0
3 years ago
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