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2 years ago

A firm has a beta of 1.3 and a debt-to-equity ratio of .4. The market rate of return is 11.6

Mathematics

1 answer:

Citrus2011 [14]2 years ago

6 0

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%

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-25 = -4r + 5 please help

Andrej [43]

-25=-4r+5
Subtract 5 to each side
-25-5=-4r+5-5
-30=-4r
Divided -4 to each side
-30/-4=-4r/-4
7.5=r
Check:
-25=-4r+5
Substitute r with 7.5
-25=-4(7.5)+5
-25=-30+5
-25=-25. As a result, r=7.5. Hope it help!

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3 years ago

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IRINA_888 [86]

Answer:

b and c

Step-by-step explanation:

3 and -3 are not zeros and zeros are when y is zero and in this case y is price in hundreds

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2 years ago

Based on historical data, your manager believes that 41% of the company's orders come from first-time customers. A random sample

TEA [102]

Answer:

The probability that the sample proportion is between 0.35 and 0.5 is 0.7895

Step-by-step explanation:

To calculate the probability that the sample proportion is between 0.35 and 0.5 we need to know the z-scores of the sample proportions 0.35 and 0.5.

z-score of the sample proportion is calculated as

z= $\frac{p(s)-p}{\sqrt{\frac{p*(1-p)}{N} } }$ where

p(s) is the sample proportion of first time customers
p is the proportion of first time customers based on historical data

N is the sample size

For the sample proportion 0.35:

z(0.35)= $\frac{0,35-0.41}{\sqrt{\frac{0.41*0.59}{72} } }$ ≈ -1.035

For the sample proportion 0.5:

z(0.5)= $\frac{0,5-0.41}{\sqrt{\frac{0.41*0.59}{72} } }$ ≈ 1.553

The probabilities for z of being smaller than these z-scores are:

P(z<z(0.35))= 0.1503

P(z<z(0.5))= 0.9398

Then the probability that the sample proportion is between 0.35 and 0.5 is

P(z(0.35)<z<z(0.5))= 0.9398 - 0.1503 =0.7895

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3 years ago

Alex and Ben were given a total of £240 They shared the money in the ratio 5:7

AfilCa [17]

Answer:

Ben received: £140

Step-by-step explanation:

Total amount = £240

Given ratio: 5:7

It means £240 is divided into 12 parts

So 1 part will be equal to: £240/12

1 part = £20

Now given ratio is:

5:7

Multiplying each share with £20

5*(£20) : 7* (£20)

£100: £140

So according to ratio amounts:

Alex received: £100

Ben received: £140

I hope it will help you!

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3 years ago

What is the sum of the first five terms of a geometric series with a1 = 6 and r = 1/3?

tresset_1 [31]

The sum of the terms of a geometric sequence with common ratio lesser than 1 is calculated through the equation,

Sn = (a1) x (1 - r^n) / (1 - r)
Substituting the known values,
S5 = (6) x (1 - (1/3)^5) / (1 - 1/3) = 242/27
Thus, the sum of the first five terms is approximately equal to 8.96.

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3 years ago

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