1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
tia_tia [17]
3 years ago
15

A firm has an equity multiplier of 1.57, an unlevered cost of equity of 14 percent, a levered cost of equity of 15.6 percent, an

d a tax rate of 21 percent. What is the cost of debt
Business
1 answer:
Elanso [62]3 years ago
6 0

Answer:

10.45%

Explanation:

Calculation to determine the cost of debt

B/S = 1.57 − 1

B/S = .57

.156 = .14 + .57(1 −.21)(.14 − RB)

.156 = .14 + .57(.79)(.14 − RB)

RB = .1045*100

RB= 10.45%

Therefore the cost of debt is 10.45%

You might be interested in
I am so coufued "what i am going to in future, i am very good in art and math and cooking and pe?
Veseljchak [2.6K]

Answer:

you can be a artist or chef

3 0
2 years ago
Read 2 more answers
According to the text, why is trade school more
jek_recluse [69]

<u>Explanation</u>:

A trade school is becoming popular this because it serves as a home to acquire technical education.

Thus anyone who wants to learn a skill having no prior experience is a best fit for trade school. A major benefit of the trade school is that it provides practical lessons to students, often times they are grouped together in peers for projects which encourages group learning.

5 0
3 years ago
Read 2 more answers
Contingent liabilities should be recorded in the accounts when: it is possible the future event will occur the amount of the lia
slava [35]
Either of the above would be correct
3 0
3 years ago
Ok i have a question: whats your dream jobs or goals in life?
Jet001 [13]

Answer:

I want to become a very accomplished writer, and a dog trainer

6 0
3 years ago
Read 2 more answers
A production manager is evaluated based on the quantity of direct materials used in production. If the production line actually
Shalnov [3]

Answer:

1) True

2) D. Total fixed costs

Explanation:

1)  The manager's evaluation should be based on a flexible budget, so the statement is true.

The standard quantity of direct materials used should be based on actual production for a correct variance analysis.

2 ) Total fixed costs remains the same when comparing a flexible budget to a master budget.

Total fixed costs do not change in total within relevant range of production.

3 0
3 years ago
Other questions:
  • Preferred stock comes in many varieties. ____ preferred stock includes a requirement that past dividends not paid must be paid i
    7·1 answer
  • Describe, in your own words, how sensation would allow an individual to acquire knowledge. Your answer should be at least one hu
    6·2 answers
  • Which of the following is a discrete quantitative variable?
    7·1 answer
  • Suppose the U.S. Treasury announces plans to issue $50 billion of new bonds. Assuming the announcement was not expected, what ef
    6·1 answer
  • What trade offs do you use when you use credit
    13·1 answer
  • Scenario
    7·2 answers
  • Good wireless and better wireless merged to form best wireless the federal government watches this merger carefully for evidence
    6·2 answers
  • At the beginning of the month, the Painting Department of Skye Manufacturing had 20,000 units in inventory, 70% complete as to m
    12·1 answer
  • The federal government creates the federal budget each year in order to
    11·2 answers
  • If a company's gross profit turns out to be higher than it had expected, the gross profit method of estimating inventory will ha
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!