1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
xxMikexx [17]
3 years ago
12

Tulloch Manufacturing has a target debt–equity ratio of .64. Its cost of equity is 14.6 percent, and its pretax cost of debt is

9.6 percent. If the tax rate is 34 percent, what is the company’s WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) WACC 11.38 %
Business
1 answer:
malfutka [58]3 years ago
3 0

Answer:

The company’s WACC is 11.38%

Explanation:

After tax cost of debt = 9.6*(1 - 0.34)

                                    = 6.336%

Debt-equity ratio = Debt/Equity

debt = 0.64*Equity

Let equity be $x

debt = $0.64x

Total = $1.64x

WACC = Respective costs*Respective weights

           = (6.336*0.64x/1.64x) + (14.6/1.64x)

           = 11.38%

Therefore, The company’s WACC is 11.38%

You might be interested in
Fifteen percent of the students in a school of Business Administration are majoring in Economics, 20% in Finance, 35% in Managem
Lina20 [59]
D/ both a bar and pie graph can be used
4 0
3 years ago
The following items are taken from the financial statements of Cullumber Company for 2022:
Doss [256]

Answer:

                                          Cullumber Company

                                          Balance Sheet

                                          As at 2022

Explanation:                      Amount in $

Current Assets

Accounts Receivable           12,500

Cash                                      13,000

Prepaid Insurance                  6,600

Supplies                                  4,600

Total Current Assets            36,700

Non-Current Assets

Equipment (225,000-36,900)  188,100

Total Assets                            <u>  </u><u>224,800</u>

Liabilities & Shareholders' Equity

Current Liabilities

Accounts Payable                10,600

Notes Payable                      65,000

Salaries Payable                      3,900

Total Current Liabilities           79,500

Equity

Common Stocks                      97,000

Retained Earnings (25,900+133,000-21,400-13,600-2,600-16,800-33,500-6,700)                                          64,300  

Dividends                                   (16,000)

 Total Equity                              145,300

Total Liabilities & shareholders' equity    <u>224,800</u>  

4 0
4 years ago
Kodak is a company name associated with photography. The company has recognized that digital photography is a threat to the futu
Ksivusya [100]

Answer:

The correct answer to the following question will be Option B (design competition).

Explanation:

  • Design competition seems to be a platform that allows participants to overcome a problem domain as well as compete against someone else, mostly their colleagues, to obtain an honor or perhaps a construction project.
  • In comparison to the greatest design, arts as well as architecture blogs around the world, A' Design Recognition and Competition distributes every information throughout the design internet networks.

Some other available options have no connection with the given scenario. So choice B seems to be the right answer to that.

5 0
3 years ago
Wage and tips income
Shkiper50 [21]

Answer:

D

Explanation:

All tips income is taxable

4 0
3 years ago
Read 2 more answers
The function of media advertising is to support the economy, provide information about products, and underwrite media costs asso
Lynna [10]
<span>The function of media advertising is to support the economy, provide information about products, and underwrite media costs associated with: Promotion of consumption
By using media advertising, a company will be able to obtain larger reach to inform potential customers about the existence of their product, which will persuade the potential buyers to spend their saving to consume their products.</span>
6 0
3 years ago
Other questions:
  • Why is your amount owed considered when determining your credit score?
    10·1 answer
  • If accrued salaries were recorded on December 31 with a credit to Salaries Payable, the entry to record payment of these wages o
    11·1 answer
  • A computer chip manufacturer claims that no more than 2 percent of the chips it sends out are defective an electronics company,
    14·1 answer
  • The process of refining the system to make sure that it continues to meet business and organizational needs is called _____. Sel
    8·1 answer
  • A company revealed the following figures: Sales revenue $2,240,000 Contribution margin $560,000 Net operating income $410,000 Ho
    15·1 answer
  • BC Corporation has 2.8 million shares of stock outstanding. The stock currently sells for $50 per share. The firm’s debt is publ
    11·1 answer
  • When the market value of an investment in debt securities in which the company has a positive intent and ability to hold to matu
    12·1 answer
  • You are thinking about buying a house. You find one you like that costs $400,000. You learn that your bank will give you a mortg
    14·1 answer
  • Commercial paper. ​ Criss-Cross Manufacturers will issue commercial paper for a​ short-term cash inflow. ​ Criss-Cross must rais
    7·1 answer
  • Which of the following know as general overhead?
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!