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Ulleksa [173]
3 years ago
8

A value that is passed into a method when it is called is known as

Business
1 answer:
N76 [4]3 years ago
8 0
It is known as an Argument. 
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Starset, Inc., has a target debt-equity ratio of 1.15. Its WACC is 8.6 percent, and the tax rate is 21 percent.
aev [14]

Answer:

a. 4.94%

b. 11.48%

Explanation:

Here in this question, we are interested in calculating the pretax cost of debt and cost of equity.

We proceed as follows;

a. From the question;

The debt equity ratio = 1.15

since Equity = 1 ; Then

Total debt + Total equity = 1 + 1.15 = 2.15

Mathematically ;

WACC = Cost of equity x Weight of equity + Pretax Cost of debt x Weight of debt x (1-Tax rate)

Where WACC = 8.6%

Cost of equity = 14%

Weight of equity = 1/(total debt + total equity) = 1/(1+1.15) = 1/2.15

Pretax cost of debt = ?

Weight of debt = debt equity ratio/total cost of debt = 1.15/2.15

Tax rate = 21% = 0.21

Substituting these values, we have;

8.6% = 14% x 1/2.15 + Pretax cost of debt x 1.15/2.15 x (1-21%)

8.6% = 14% x 1/2.15 + Pretax cost of debt x 1.15/2.15 x (1-21%)

Pretax cost debt = (8.6%-6.511628%)/(1.15/2.15 x (1-21%))

Pretax cost of debt = 4.94%

b. WACC = Cost of equity x Weight of equity + After tax Cost of debt x Weight of debt

8.6% = Cost of equity x 1/2.15 + 6.1% x 1.15/2.15

Cost of equity = (8.6%-3.26279%)/(1/2.15)

Cost of equity = 11.48%

6 0
3 years ago
A decrease in the price of domestically produced industrial robots will be reflected in a. both the GDP deflator and the consume
andrezito [222]

Answer:

The correct answer is option c.

Explanation:

A consumer price index measures the change in the price level of weighted average of a basket of goods and services purchased by the consumers.  

GDP deflator measures the change in the price of all domestically produced goods and services.  

A change in the price of domestically produced industrial robots will be included in the GDP deflator as it includes the prices of all domestically produced goods and services.  

But it will not be included in the CPI as the industrial robots are not purchased by consumers in households, they are not consumer goods.

8 0
3 years ago
Whats better, be an hour early to work, or 15 minutes late?
statuscvo [17]
An hour early to work. if you are 15 minutes late your fired. i go by if you early your on time. if your on time your late. if you late your fired.

3 0
2 years ago
The identify options step in the operational risk management (orm) process includes implementing engineering, administrative, an
stiks02 [169]
The correct answer for this statement would be TRUE. In the Operational Risk Management or ORM, this involves the careful decision making and should be systematic when managing  hazards that endanger naval resources and one of the steps is implement controls which include engineering c<span>ontrols, administrative controls, and personal protective equipment. Hope this helps.</span>
5 0
3 years ago
Is a leadership position for a club considered volunteer experience?
yarga [219]
Yes because you are helping put something together and are not being paid for it.
6 0
2 years ago
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