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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)

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A product enters the maturity phase of the life cycle, during which cells are strong but growth is slowing. What product managem
MaRussiya [10]

Answer:

D.

Explanation:

If you improve product performance more people would want to buy the one with improved performance.

5 0
2 years ago
Read 2 more answers
Meena Chavan​ Corp.'s computer chip production process yields DRAM chips with an average life of 1 comma 800 hours and sigma ​=
Lena [83]

Answer:

Cp= 1.33

Explanation:

Giving the following information:

Meena Chavan​ Corp.'s computer chip production process yields DRAM chips with an average life of 1,800 hours and sigma ​= 100 hours. The tolerance upper and lower specification limits are 2,400 hours and 1,600 ​hours, respectively.

Cp= (upper specification - lower specification)/6*sigma

Cp= (2400 - 1600)/6*100= 1.33

3 0
3 years ago
McCann Publishing has a target capital structure of 35% debt and 65% equity. This year's capital budget is $850,000 and it wants
levacccp [35]

Answer: $952500

Explanation: targeted equity ratio is 65% = 0.65

Capital budget = $850000

Dividend = net income - (target equity ratio × total budget)

400000 = N - (0.65 × 850000)

Make N the subject of formula

Net income N = $952,500

4 0
3 years ago
Art Company issued 6%, 5 year bonds, with par value of $1,600,000, paying semiannual interest for $1,470,226. The annual market
Soloha48 [4]

Answer:

The correct answer is option (B).

Explanation:

According to the scenario, the given data are as follows:

Bond carrying value = $1,470,226

Rate of interest = 8%

Rate of interest (Semiannual ) = 4%

So, we can calculate the the bond interest expense on the first interest payment by using following formula:

The bond interest expense = Bond carrying value × rate of interest (semiannual)

By putting the value we get

= $1,470,226 × 4%

= $58,809

6 0
3 years ago
1. Which of the following accurately explains why scarcity forces individuals and society to incur opportunity costs? A. Because
lozanna [386]

Answer:

explanation of opportunity cost:

A. Because of scarcity, people must make choices, and each choice incurs a cost

exampes of opportunity cost:

A. The money spent on a movie ticket cannot buy a Blu-ray player

C. The time spent preparing for a test cannot be spent playing computer games

Explanation:

The opportunity cost refers to the return or ouput of the resource used in the best alternative decision.

That means, the wages we get fro ma certain job most be compared with the wages we could do in another to really check if we are making a gain or not with our job.

Same applies for capital and other factors.

4 0
3 years ago
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