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zimovet [89]
3 years ago
6

The weighted-average cost of capital for a firm with a 65/35 debt/equity split, 8% pre-tax cost of debt, 15% cost of equity, and

a 35% tax rate is
Business
1 answer:
Vinil7 [7]3 years ago
8 0

Answer:

weighted-average cost of capital is 11.57 %

Explanation:

Weighted Average Cost of Capital (WACC) is the return that is required by providers of long term permanent sources of capital.

WACC = Weight of Equity × Cost of Equity + Weight of Debt × After tax cost of debt.

where,

After tax cost of debt = interest × ( 1 - tax rate)

                                     = 8% × (1 - 0.35)

                                     = 5.20 %

Therefore,

WACC = 0.65 × 15% + 0.35 × 5.20 %

           = 11.57 %

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Which best describes what a subsidy does?
MAVERICK [17]
<span>Hello,
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Subsidy means allowance, funding, or donation.

Apart from the definition, I believe your answer would be:

<span>It keeps the price of domestic goods relatively low,
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8 0
3 years ago
Read 2 more answers
If consumption expenditures are $200 billion, total investment is $50 billion, government purchases are $40 billion, exports are
kolezko [41]

Based on the information given the aggregate expenditures must be: $295 billion.

Using this formula

Aggregate expenditure= Consumption expenditures+ Total investment + Exports

Where:

Consumption expenditures=$200 billion

Total investment= $50 billion

Exports=$45 billion

Let plug in the formula

Aggregate expenditure=$200 billion+$50 billion+$45 billion

Aggregate expenditure=$295 billion

Inconclusion the aggregate expenditures must be: $295 billion.

Learn more here:

brainly.com/question/14956152

4 0
2 years ago
Colorado Corporation has two classes of​ stock: common, ​$3 par​ value; and​ preferred, ​$30 par value.Requirements1.Journalize
Alborosie

Answer:

1)

Debit   Cash/Bank 27,000    (4,500 shares x $6 per share)

Credit  Common Stock 13,500  (4,500 shares x $3 per share)

Credit  Paid-In Capital in Excess of Stated Value—Common 13,500  (4,500 shares x $3 per share)

2)

Debit   Cash/Bank 135,000  (4,500 shares x $30 per share)

Credit  preferred Stock 135,000  (4,500 shares x $30 per share)

Explanation:

any issuing price of stock above par value will be credited in "Paid-In Capital in Excess of Stated Value—Common"

8 0
3 years ago
Which of the following is not effective when making a daily to do list? Make your list at the same time everyday so it becomes a
miskamm [114]

Answer:

Make your list at the same time everyday so it becomes a bit Be specific of what needs to be done

Explanation:

hopes this helps :)

8 0
3 years ago
nformation for firm ABC: Inventory at the end of April, 2008: 200 units Expected demand during April, 2008: 50 units Production
OverLord2011 [107]

Answer:

Inventory at the end of march 2008 = 150 units

Explanation:

<em>The closing inventory at the end of a particular period will be opening inventory at the beginning of the following period.</em>

<em>Note that the inventory at the end of March 2008 will be the opening inventory at the beginning of April 2008.</em>

<em>The production budgeted for a particular period is the expected units  to be produced  after adjusting the sales budget figures for opening and closing inventories. </em>

Production =  Sales volume + closing inventory - opening inventory

100 = 50 + 200 - X

X = 50 + 200 -100

X = 150 units

Inventory at the end of march 2008 = 150 units

3 0
3 years ago
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