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%
The manufacturers are trying to counteract the negative environmental impacts of manufacturing by:
- reducing and eliminating waste
- establishing green initiatives
<h3>How does manufacturing affect the
environment?</h3>
The emission of carbon and waste from the manufacturing plant plays a part in the concentration of greenhouse gases on earth.
However, the manufacturers are adopting the process of reducing & eliminating waste and establishing green initiatives to minimize its pollution of the environment.
Therefore, the Option B and E is correct.
Read more about environmental impact
<em>brainly.com/question/27080910</em>
<span>During the recent financial crisis, many financial managers and corporate officers have been criticized for (c) Large salaries. This criticism is certainly justified given that most executives received exorbitant compensation despite a plunge in the value of their companies. Thus, their salaries are not justifiable as they are not serving the needs of the shareholders whose interest they should serve. </span>
Answer: A 4-year bachelor's degree in a PR-related area like journalism, marketing or communications is frequently required for entry-level positions. Many colleges or universities offer specific public relations certificate programs or majors.
Explanation:
Bruh what is you talking bout I ain’t never seen to pretty best
