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Fynjy0 [20]
3 years ago
15

A company is 49% financed by risk-free debt. The interest rate is 8%, the expected market risk premium is 6%, and the beta of th

e company’s common stock is .59. a. What is the company cost of capital? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Cost of capital
Business
1 answer:
NemiM [27]3 years ago
3 0

Answer: 9.81%

Explanation:

Cost of capital = (cost of debt * weight of debt) + ( cost of equity * weight of equity)

Cost of Equity = Risk free rate + beta * Market risk premium

= 8% + 0.59 * 6%

= 11.54%

Cost of capital = (8% * 49%) + (11.54% * 51%)

= 9.81%

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alex measured the length of an item to be 3.9 cm. the actual length is 3.5 cm what is alex percent error ?
Alisiya [41]

Answer:

11.42 %

Explanation:

The formula for calculating percentage error

percentage error = <u>observed value - actual value x 1</u>00

     actual value

Percentage error =    <u>3.9- 3.5</u>  x 100

    3.5

Percentage error = <u>0.4  x 100</u>

                             3.5

Percentage error =0.1142 x 100

Percentage error = 11.42 %

3 0
3 years ago
True or false: allocative efficiency is achieved by equalizing consumer surplus and producer surplus
zepelin [54]
<span>THE EFFICIENT ALLOCATION OF LIMITED RESOURCES MOSTLY BEING FACTORS OF PRODUCTION TO COMPLETE A TASK. SO ALLOCATION EFFICIENCY PLAYS A VITAL ROLE TO ACHIEVE AND BY EQUALIZING CONSUMER SURPLUS AND PRODUCER SURPLUS . IT IS TRUE THAT ALLOCATION EFFICIENCY IS ACHIEVED BY EQUALIZING CONSUMER SURPLUS AND PRODUCER SURPLUS.</span>
4 0
3 years ago
Willow Golf Course is planning for the coming golfing season. Investors would like to earn a 15% return on the company's $58,000
Ira Lisetskai [31]

Answer:

The operating profit is $4,800,000

Explanation:

We know that,

The operating profit would equal to

= Sales - variable cost - fixed expenses

where,

Sales = Number of rounds of golf × selling price per unit

         = 600,000 rounds × $75

         = $45,000,000

Variable cost = = Number of rounds of golf × selling price per unit

                          = 600,000 rounds × $17

                          = $10,200,000

And, the fixed expenses is $30,000,000

Now put these values to the above formula  

So, the value would equal to

= $45,000,000 - $10,200,000 - $30,000,000

= $4,800,000

3 0
3 years ago
Data for Corporation and its two divisions, Domestic and Foreign, appear below:
kari74 [83]

Answer:

the segment margin for the Domestic division is $162,200

Explanation:

The calculation of the segment margin is shown below:

Segment Margin is

= Domestic Sales Revenues  - Domestic Variable Expenses - Domestic Traceable Fixed Expenses

= $541,000 - $314,000 - $64,800

= $162,200

Therefore the segment margin for the Domestic division is $162,200

7 0
3 years ago
In terms of the global marketplace there are three primary types of companies: __________, multinational firms, and transnationa
Allushta [10]

Option D

In terms of the global marketplace there are three primary types of companies: international, multinational firms, and transnational firms

<h3><u>Explanation:</u></h3>

Global marketing is larger than only trading a product internationally. Preferably, it covers the entire process of preparation, manufacturing, fixing, and selling a company’s goods in a worldwide market.

An international company is included in transporting and trading its goods and services to different nations, but other than shipping has no other financing in these other nations. All of the business purposes and headquarters reside in the country of origin, and there are no parts of the company across in any of the nations the market trades with.

8 0
3 years ago
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