Beta= 1.3
Debt to equity ratio= 0.4
Market rate of return= 11.6%
= 11.6/100
= 0.116
Tax rate= 32%
= 32/100
= 0.32
Risk free rate= 3.3%
= 3.3/100
= 0.033
Pretax cost of debt= 7.2%
= 7.2/100
= 0.072
The firm's WACC can be calacluated as follows
RS= 0.033+1.3(0.116-0.033)
= 0.033+1.3(0.083)
= 0.033+0.1079
= 0.1409
WACC= (1/1.4)(0.1409)+(2/1.4) (0.072)(1-0.32)
= (0.7142)(0.1409) + (1.4285)(0.072)(0.68)
= 0.1006+0.0699
= 0.1705(100)
= 17.05%
Hence the firm's WACC is 17.05%
Hello,
Here is your answer:
The proper answer to this question is option D "4.19%".
Your answer is D.
If you need anymore help feel free to ask me!
Hope this helps!
Integers and Rational Numbers, it is because if -11 is a Integer, it also has to be a Rational number. But your actual answer is Integers.
So, in the list of numbers, 8 and 9 are solutions
Answer:
Step-by-step explanation:
ΔDAC and ΔDCB are similar (AA). Therefore the sides are in proportion:
We have DA = 3cm and DB = 8 cm. Substitute:
<em>cross multiply</em>
