Answer:
The company WACC is 13.30%
Explanation:
For computing the WACC, first we have to find the weight-age of both debt and equity.
Since in the question, the weightage of debt and equity is given which is equals to
Debt = 30%
And, Equity or common stock = 70%
So, we can easily compute the WACC. The formula is shown below
= Weighted of debt × cost of debt × (1- tax rate) + Weighted of equity × cost of equity
= 0.30 × 0.10 × (1 - 0.30) + 0.70 × 0.16
= 0.021 + 0.112
= 13.30%
Hence, the company WACC is 13.30%
<span> making on time payments on a debt
</span><span> purchasing a large kitchen appliance with cash
</span><span> saving 25% of every paycheck</span>
Answer:
low market growth, high relative market share
Explanation:
In 1970, Bruce D. Henderson created a certain growth-share matrix for the Boston Consulting group in which the cash cow was stated to be a company that operates in a slow-growing industry but with large market share.
Companies are known to love cash cows, reason being that they require minimal amount of money to maintain while the business on its own gives back much more money than one puts into it
