Answer:
The debt-equity ratio need to be 1.01 for the firm to achieve its target WACC
Explanation:
In order to calculate the debt-equity ratio we would have to calculate the following formula:
debt-equity ratio=Weight of debt/Weight of equity
To calculate the Weight of debt we would have to use the formula to calculate the WACC as follows:
WACC = Wd×Rd×(1-t)+We×Ke
Therefore, according to the given data:
11.20% = Wd×8.70%×(1-35%)+(1-Wd)×16.80%
11.20% = Wd×5.655%+16.80%-16.80%×Wd
11.145%×Wd = 5.60%
Weight of debt=0.5025
Weight of equity=1-Weight of debt
Weight of equity=1-0.5025
Weight of equity=0.4975
Therefore, debt-equity ratio=0.5025/0.4975
debt-equity ratio=1.01
The debt-equity ratio need to be 1.01 for the firm to achieve its target WACC
Answer:
B
Explanation:
sense I help you you help me, What are the effects of El Nino? (4 only)
The new whig party consisted mainly of those who disliked Andrew Jackson
All of the above are important for the flexible budget
Answer:
50 dollars.
Explanation:
$40 divided by .80 is 50 so that is your answer.