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
Notice that real GDP trends upward over time but experiences ups and downs in the short run. These short-run fluctuations in rea
Oxana [17]

Answer:

The correct answer is:

True

Explanation:

The business cycle is a model that let see how the GDP of a country changes through time. Business cycle is classified in four different stages peak, trough, contraction, and expansion. These kind of fluctuations normally occur in the trade, production and all the economic activity of a country. The business cycle refers to the changes or fluctuations that can be experienced in the economic model measured by the GDP (Gross Domestic Product) and it is reflected in the increases or decreases in economy.

7 0
3 years ago
Chiquita produces bananas for an average explicit cost of $0.25 per banana and sells 1 million bananas per week for a price of $
VLD [36.1K]

Answer:

Chiquita makes an economic profit of $250,000.

5 0
2 years ago
I need help with question 1 and 2!!
Mila [183]
Pneumonoultramicroscopicsilicovolcanoconiosis
5 0
3 years ago
According to the expenditure approach, if Y is GDP, C is consumption, I is investment, G is government purchases, and NX is net
lidiya [134]

Answer:

The answer is Y = C + I + G + NX

Explanation:

National income can be represented as: Y = C + I + G + NX

where Y is the national income

C is the consumers' consumption or households' expenses on goods and services

I is the firms' investment. Investment done by businesses on procuring non-current assets used in production

G is the government expenditure.

NX is the net export. Net export is the difference between the total value of export and total value of import in a year.

6 0
3 years ago
A client has been given atropine to cause mydriasis and cycloplegia. What is the expected outcome for this client?
Nady [450]

Answer:

dilation of the pupil and loss of accommodation

Explanation:

Mydriasis is the dilation of the pupil of the eye. The dilation causes vision to be blurry.

Cycloplegia on the other hand is the loss of accommodation of the pupil and it is caused by the paralysis of the cilliary muscle of the eye. This paralysis causes the eyes to lose its ability to focus on things nearby.

Looking at this two conditions from the administration of atropine, the expected outcome of the client is blurry vision and inability to focus or see things close by(farsightedness).

I hope this helps.

5 0
2 years ago
Other questions:
  • It costs Sheffield Corp. $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A for
    14·1 answer
  • Corba Company is evaluating whether to replace an old machine with a new, more efficient machine. Corba purchased the old machin
    14·1 answer
  • A group of manufacturers of LCD screens for computers and cell phones met together monthly in private conference rooms in hotels
    12·1 answer
  • One of the other employees in your department department did not show up for work he will not be coming in today no one will be
    6·2 answers
  • Suppose that the Fed has decided to utilize the Taylor rule to implement monetary policy. If the actual federal funds rate targe
    7·1 answer
  • Eugene Torres works in a shared role for Multi Glass Computers. He works in both the programming and the research departments fo
    6·1 answer
  • The 2012 youth gang survey depicted an estimated 30,000 gangs containing about ______________ gang members active in the united
    14·2 answers
  • A small office building is purchased for $1,200,000 with a balloon mortgage that is due at the end of year 10. Payments are base
    10·1 answer
  • What can help you meet your budget while shopping for
    14·1 answer
  • The designer department received 4 dresses in style 1 436 that retailed for R
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!