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Mariana [72]
2 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]2 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:

Explanation:

* M1 = currency in circulation + checking deposits

* M2= M1 + short term money deposits + 24 hour market funds

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3 0
3 years ago
A community organizer wants to convince state officials to create a universal preschool program so that all families with young
ch4aika [34]

Answer:

David Snow focused on this set of conguent interests on social movements issues strategies on his most important scholarly achievement which he called "framing perspective"

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Snow´s "framing perspective" approach on large, informal groupings of individuals or organizations to negotiate on emergent meanings of social-movement issues, is psychological and centered in agencies services focused on specific action for change.

More than competing perspectives framing perspective is a diagnostic framing to identify the problem to assign of blame; prognostic framing to suggest solutions, strategies, and tactics to a problem and motivational framing to get rationale action to the types of social change, which could be alternative, redemptive, reformative and revolutionary according to David F. Aberle a cultural anthropologist.

8 0
3 years ago
If a student attends every management science class, the probability of passing the course is 0.80; but if the student only atte
goldfiish [28.3K]

Answer:

EV of node 4 = 0.6×5 + 0.4×0 = 3

EV of node 5 = 0.1×5 + 0.9×0 = 0.5

EV of node 2 = (0.8×5 + 0.2×EV of node 4) - 3

EV of node 2 = (0.8×5 + 0.2×3 ) - 3

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4 0
3 years ago
What account would travelocity credit when you make a reservation with them? what account would be debited? answer?
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5 0
3 years ago
Your aunt wants to retire and has $375,000. She expects to live for another 25 years, and she also expects to earn 7.5% on her i
steposvetlana [31]

Answer:

$33,641.50

Explanation:

The computation of the amount withdrawn for the year is shown below:

As we know that

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