You draw a straight line and then put your number on the line. If you have to find a negative number, you can just go below zero. Positive numbers on a number line are always above zero. Hope this helps!
I think 37%......................................................
Answer:
B (2.5, 0)
Step-by-step explanation:
2x - y = 5 (multiply all by 4)
8x- 4y = 20
-8x - 4y = - 20
eliminate the 4y
8x- 4y = 20
-8x - 4y = - 20
-------------------- –
16x = 40
x = 40/16 = 2.5
now we substitute x with 2.5
2x - y = 5
2(2.5) - y = 5
y = 0
Here you go!!! I hope this helps
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%
