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
Whitepunk [10]
3 years ago
10

Your firm uses half debt and half equity. The shareholders need to earn 20%. The firm can borrow at 5%. The risk free rate is 2%

. The tax rate is 40%. Find the weighted average cost of capital.
Business
1 answer:
IgorLugansk [536]3 years ago
7 0

Answer:

11.5%

Explanation:

WACC = weight of equity x cost of equity + weight of debt x cost of debt x (1 - tax rate)

You might be interested in
"Dawn" is a song included in the sound track of "eDay," a movie produced and distributed by FasTrac Corporation. The song featur
frutty [35]

Answer:

Yes it is copyright infringement.

In order for someone to transfer any material (in this case music) digitally or online, it must be copied first. So when someone produces a digital sampling of copyrighted material, no matter if it only lasts a couple of seconds, it constitutes copyright infringement.

4 0
3 years ago
Suppose you are trying to understand the effect that an increase in the price of grapes will have on the market for wine.
NemiM [27]

Answer:

The correct answer is option d.

Explanation:

The most effective model to understand the effect of change of a variable on other variable is by assuming other factors to be constant. This simplifies the model and helps in easily understanding the relationship between the two variables.  

Though the assumption of other things being constant does not apply in the real world, it is still used as otherwise change in other factors would complicate the model. If several factors change it would be difficult to understand the relationship between variables.  

Here, to study the effect of change in the price of grapes on the market for wine, it is necessary to assume other factors such as income, consumer preferences, etc to be constant.

4 0
3 years ago
New greenbelt areas have been created to beautify the grounds around tampa power and light company. the greenbelt areas are an e
Alexandra [31]
The areas are an example of <span>a decrease in the price and an increase in the quantity of the firm's output.
The green areas would decrease the amount of money that the company need to handle waste of production, and social responsibility related cost, which would decrease the price and increase the firm's output.</span>
3 0
3 years ago
Read 2 more answers
One reason to buy a home instead of rent a home is:
Effectus [21]
Less money up front equals it to be better than renting an appartment
3 0
3 years ago
Read 2 more answers
Pastore Inc. granted options for 1 million shares of its $1 par common stock at the beginning of the current year. The exercise
Step2247 [10]

Answer:

$7,000,000

Explanation:

Calculation to determine What would be the total compensation indicated by these options

Using this formula

Total Compensation =Beginning options*Fair value of the options

Let plug in the formula

Total Compensation =1,000,000 shares × $7

Total Compensation =$7,000,000

Therefore What would be the total compensation indicated by these options is $7,000,000

3 0
3 years ago
Other questions:
  • The coding system that is used primarily for reporting diagnoses for hospital inpatients is known as:
    10·1 answer
  • Which of the following statements best describes the function of the break-even point?a) It signifies the point at which the dem
    11·1 answer
  • Safety belts usually consist of a lap belt and
    6·1 answer
  • Tidewater Distributors is successfully using short-term financing to buy inventory for resale. As sales climb, the managers real
    7·2 answers
  • A new associate recently joined your team. He is struggling with the feedback-rich environment in which team members are encoura
    6·1 answer
  • Franklin Electric is presently generating earnings available to common shareholders of​ $7.25 per share. The​ firm's income tax
    5·1 answer
  • Which of the following is not an example of a SMART long-term education or
    15·1 answer
  • The use of debt in the firm's capital structure will increase ROE if the firm:_____.
    12·1 answer
  • 15 points!
    13·2 answers
  • A college-educated woman waits until age 32 before she has her first child because she wanted to establish her own business firs
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!