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Mariana [72]
3 years ago
9

A firm has a capital structure with $3 in equity and $3 of debt. The cost of equity capital is 0.17 and the pretax cost of debt

is 0.06. If the marginal tax rate of the firm is 0.48. Compute the weighted average cost of capital of the firm.
Business
1 answer:
vampirchik [111]3 years ago
4 0

Answer:10.06 %

Explanation:

WACC = (Cost of equity × weight of equity ) + (Cost of debt × weight of debt)

Cost of equity = 0.17

Cost of debt = pretax cost of debt × (1 - tax rate )

0.06 × 0.52 = 0.0312

Weight of debt and equity = $3 / $6 = $0.5

WACC = ( 0.17 × 0.5 ) + (0.52×0.06 × 0.5) = 0.085 + 0.0156 = 0.1006 = 10.06%

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Answer:

False

Explanation:

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Answer:

my individual capabilities in project teamwork include tolerance, respect for difference in values, objectivity

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In the other vein, I would need to develop my weaknesses in the areas of over-tolerance and the useof vogue language when angry.

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3 years ago
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Ipatiy [6.2K]

Answer:

The correct answer is letter "B": cost-benefit assessment.

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3 0
3 years ago
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Answer: Internet.

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Answer:

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3 years ago
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