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
AlexFokin [52]
3 years ago
10

Avery Corporation's target capital structure is 35% debt, 10% preferred, and 55% common equity. The interest rate on new debt is

6.50%, the yield on the preferred is 6.00%, the cost of common from reinvested earnings is 11.25%, and the tax rate is 25%. The firm will not be issuing any new common stock. What is Avery's WACC
Business
1 answer:
Andreyy893 years ago
8 0

Answer:

8.15%

Explanation:

The computation of the weighted average cost of capital as follows;

= After Cost of debt × weightage of debt + cost of preferred stock × weight of preferred stock + cost of common equity × weight of equity

= 6.50% × (1 - 0.40) × 35 ÷ 100 + 6% × 10 ÷ 100 + 11.25% × 55 ÷ 100

= 1.37% + 0.60% + 6.19%

= 8.15%

You might be interested in
Is streaming Business in form 4 Diffult?. Justify your Answer.​
ExtremeBDS [4]

Answer:

money

Explanation:

because when you have a business you are making money

5 0
3 years ago
John is an electrician who runs his own small shop. When tax season comes, he hires an accountant from one of "the Big Four" acc
Alex Ar [27]

Answer:

When tax season comes, he hires an accountant from one of "the Big Four" accounting firms to help him file his business's tax return. In this scenario, John has most likely hired a <u>Tax</u> Accountant

Explanation:

A Tax Accountant helps the individual or businesses that hire them fill out their tax forms properly, advise them about future financial moves that can affect their taxes and file taxes with the appropriate documentation electronically so that your clients receive their refunds as quickly as possible.

They can work as a direct employee or as an independent contractor who runs their own business.

They take charge of tax preparation and help your clients to lower their tax obligations when filing tax returns.

If an individual is audited, they handle this audit for them to ensure that the individual gets through the process unharmed.

8 0
3 years ago
Read 2 more answers
The ending retained earnigns balacne is reported on both the retaiend earnigns stastaemnt and the balacne sheet.
Rudiy27
I think it’s a, sorry if I’m wrong though
7 0
3 years ago
The management of Wyoming Corporation is considering the purchase of a new machine costing $375,000. The company's desired rate
podryga [215]

Answer:

it would be easier if you enter these into a tabular format, so you can then do the calc on excel or copy and paste here for ppl to see it clearly. The presentation of business information is important for the intended audience

Explanation:

6 0
3 years ago
Which of the following activities is the least expensive?
kramer
Probably swimming unless for photography you use a cheap camera :p

It really just depends how you look at it 
3 0
4 years ago
Read 2 more answers
Other questions:
  • Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in the following cash transactions: 1)
    14·1 answer
  • For each of the following, journalize the necessary adjusting entry:
    7·1 answer
  • ullbright Company sold goods to Blue Dirt Company for $400,000 in exchange for a 4-year, zero-interest-bearing note with a face
    10·1 answer
  • Explain in three sentences what “a decision to communicate constructively” means
    5·1 answer
  • Olga's Company has a sales budget for next month of $150,000. Cost of goods sold is expected to be 40 percent of sales. All good
    14·1 answer
  • Jane Spring maintained this record of vehicle expenses for last year: gas, $845.96; oil, lube, miscellaneous, $68.85; insurance,
    7·2 answers
  • Explain how insurance companies use statistics.
    12·1 answer
  • You purchased a 5-year, 6% annual-coupon bond with $1,000 par value. The yield to maturity at the time of purchase was 4%. You s
    8·1 answer
  • Which phrase best completes the diagram?
    7·2 answers
  • Uncle Ulysses can obtain an additional 10 hours of painting capacity free of charge by training his
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!