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kakasveta [241]
3 years ago
14

Take It All Away has a cost of equity of 10.96 percent, a pretax cost of debt of 5.46 percent, and a tax rate of 40 percent. The

company's capital structure consists of 72 percent debt on a book value basis, but debt is 38 percent of the company's value on a market value basis. What is the company's WACC?
A) 9.46%
B) 8.87%
C) 7.24%
D) 12.06%
E) 8.04%
Business
1 answer:
Zinaida [17]3 years ago
7 0

Answer:

8.04%

Explanation:

The formula to compute WACC is shown below:

= Weightage of debt × cost of debt × ( 1- tax rate)  + (Weightage of  common equity × (cost of common equity)

= (0.38 × 5.46%) × ( 1 - 40%)  +  (0.62 × 10.96%)

= 1.24488% + 6.7952%

= 8.04%

The weightage of common equity would be

= 100% - 38%

= 62%

This is the answer and the same is not provided in the given options

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Answer:

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although novel technologies enable economies to be more productive and achieve greater potentials, in poorer countries they lack the necessary infrastructure and human resources to harness the full potential of this technologies. Also, the initial costs of applying these technologies is higher as well.

Because of this, these new technologies do not benefit the poor countries much.

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You are looking to buy a car and you have been offered a loan with an APR of 5.7 %​, compounded monthly. a. What is the true mon
lukranit [14]

Answer:

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Explanation:

a.

APR = 5.7%

Monthly Interest rate = APR / n

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b.

APR = 5.7%

m = 12

EAR = [ ( 1 + (APR / m))^m] - 1

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5 0
3 years ago
Concentration ratios measure the Group of answer choices geographic location of the largest corporations in each industry. degre
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Answer:

percentage of total industry sales accounted for by the largest firms in the industry.

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Therefore as per the given options, the above options should be considered correct

3 0
3 years ago
Please help!!! I need help ASAP!
34kurt
Hi!

 The answer to your question should be B. Pays the difference of the current value to the amount you owe.
5 0
3 years ago
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