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
Assume the marginal propensity to consume is 0.75. What will happen if government spending increases by $100 billion
bazaltina [42]

What will happen if government spending increases by $100 billion is:

Real output will increase by a maximum of $400 billion.

<h3>Government spending</h3>

Using this formula

Multiplier=1/(1-MPC)

Where:

MPC=Marginal propensity to consume =0.75

Let plug in the formula

Multiplier=1/(1-0.75)

Multiplier=1/0.25

Multiplier=4

Increase in GDP= Government spending ×4

Increase in GDP=$400

Inconclusion what will happen if government spending increases by $100 billion is: Real output will increase by a maximum of $400 billion.

Learn more about government spending here:brainly.com/question/25125137

8 0
2 years ago
Navistar Electric issued 1000 debenture bonds 2 years ago with a face value of $5,000 each and a bond interest rate of 15% per y
Natasha2012 [34]

Answer:

$7,081.25

Explanation:

Face value = 5000

Coupon = 15% paid annually. Semi annual payment = 750/2 = 375

Time to maturity = 18 years

Interest rate = 10% compounded semi-annually

P = 375(P|A, 5%, 36) + 5000(P|F, 5%, 36)

P = 375(16.58131488) + 5000(0.17265193)

P = 6217.99308 + 863.25965

P = 7081.25273

P = $7,081.25

So, the present worth of one bond today is  $7,081.25

4 0
3 years ago
When Corey runs out of shampoo he buys whatever brand is on sale at his local CVS drugstore. What is his level of involvement in
hodyreva [135]

Answer: A. Extensive

Explanation: When Corey runs out of shampoo he buys whatever brand is on sale at his local CVS drugstore.

From the above question, Corey has an extensive decision making on toothpaste purchase as he does not have any brand loyalty. He buys whatever brand is available for him to buy and he is not particular about the name, the size or content of the product he is buying.

6 0
3 years ago
The head of ABC Company announces that the company is going to start a weekend project teaching self-defense techniques to under
Alex73 [517]

Answer:

B. behavioral

Explanation:

Attitude is the way of handling things as every individual use different approach in handling different task. There are three components that impact the attitude of working.

  • Cognitive.
  • Affective.
  • Behavioral.

The cognitive component is referred to as the knowledge and information of the people about the task or object.

The affective component is referred to like the feeling and emotion of a person toward handling any task or objects.

The behavioral component is a natural tendency of humans to behave in a certain way in a particular situation.

8 0
3 years ago
Which of the following is not a business management perspective that goes beyond the numbers to enable intelligent planning, con
lana [24]
<h2>Lean Production Perspective</h2>

Explanation:

There are 6 Business management perspective. They are:

  1. An ethics perspective
  2. Strategic management perspective
  3. Enterprise risk management
  4. Corporate social responsibility perspective
  5. A process management perspective
  6. A leadership perspective

Here the Lean production perspective does not come under the business management perspective.

Lean production actually deals with cutting down of waste and whilst ensuring quality. This approach is basically a cost-cutting approach where it brings benefit to the business. This is one of the most efficient methods.

4 0
3 years ago
Other questions:
  • Brian holds a meeting with all the managers in the company to identify a strategy for business growth. He tells the managers tha
    9·1 answer
  • The opportunity cost of a decision is measured in terms of
    11·1 answer
  • Sunset Acres reported net income of $60 million. Included in that number were trademark amortization expense of $2 million and a
    14·1 answer
  • Which of the following situations represents an economic problem? a) A student trying to decide how to spend his weekly allowanc
    15·1 answer
  • In its first month of operations, Skysong, Inc. made three purchases of merchandise in the following sequence: (1) 320 units at
    14·1 answer
  • Santa Fe Production sells a single product to wholesalers. The company's budget for the upcoming year revealed anticipated unit
    6·2 answers
  • Which particular demographic do you think has the most effect on consumer purchasing decisions? Explain.
    12·1 answer
  • Someone who is applying for a loan from a bank can expect the bank to: O A. investigate the person's parents to see if they were
    7·1 answer
  • What is one advantage of starting to invest
    6·1 answer
  • the commercial banking system borrows from the federal reserve banks. as a result, the checkable deposits
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!