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
sasho [114]
3 years ago
14

The calculation of WACC involves calculating the weighted average of the required rates of return on debt, preferred stock, and

common equity, where the weights equal the percentage of each type of financing in the firm’s overall capital structure. is the symbol that represents the before-tax cost of debt in the weighted average cost of capital (WACC) equation. Mitchell Co. has $2.3 million of debt, $2.5 million of preferred stock, and $1.8 million of common equity. What would be its weight on preferred stock?
Business
1 answer:
FinnZ [79.3K]3 years ago
8 0

Answer:

37.88 %

Explanation:

The weight on preferred stock mean, what percentage out of the Total Market Value of the Sources of Capital pooled together is taken by Preferred Stock.

Weight on preferred stock = Market Value of Preferred Stock / Total Market Value of Sources of Capital x 100

where,

Market Value of Preferred Stock = $2.5 million

and

Total Market Value of Sources of Capital :

Debt                            $2.3 million

Preferred Stock         $2.5 million

Common Equity          $1.8 million

Total                            $6.6 million

therefore,

Weight on preferred stock = $2.5 million / $6.6 million x 100 = 37.88 %

You might be interested in
(50 pts) Which of the following statements concerning price indexes is not accurate?
Mademuasel [1]

<em>Price indexes define the cost of goods in the entire economy at a given point in time.</em>

<em />

A price index is a scale used to measure changes in the levels of prices. This is a percentage scale that can be either based on prices of a single good or an entire market basket. This is only a small-scale index, not representative of an entire economy.

4 0
3 years ago
Read 2 more answers
Which of the following is a unique feature of credit unions?
Mkey [24]
D) Both A & B
<span>a)Credit unions are typically owned and run by their members
</span><span>b)Credit unions limit membership to certain people or groups</span>
4 0
3 years ago
Read 2 more answers
what document explains your rights and responsibilities as a federal student loan borrower? your master promissory note your bil
rjkz [21]

The master promissory note is a document that explains your rights and responsibilities as a federal student loan borrower.

The first option is correct. This document is one that is legally binding. Before a student agrees that they would want to take out loans as students, they first have to know what their rights and responsibilities are as a borrower and also to the lending facility.

There are a lot of available options that are in place to help with the management of student loans.

Read more on brainly.com/question/25038347?referrer=searchResults

6 0
3 years ago
Josh purchased a baseball team for 100 million dollars and financed the entire purchase price at a nominal rate of interest paya
JulijaS [17]

Answer:

4 millions

Explanation:

First, we will check how much was amortizate for the first loan:

Principal 100 million

on 10 equal payment

amortization per year 100/10 = 10 millions

we refinance at the end of the fourth installment

10 x 4 = 40 millions

The principal at the end of year four:

Principal 100 millions - 40 millions = 60 millions

This amount will be paid on 15 years with 15 equal payment

60 million / 15 years = 4 millions

6 0
4 years ago
What are the two major feelings that must exist for great ledership to happen?What is the problem with these two major component
SOVA2 [1]

Answer:

Two feelings which are critical to the success of leadership are:

  1. Trust and
  2. Confidence

Explanation:

The leader must be able to give and receive trust.

The followers must trust that their leader knows where he is headed and they have to be confident that that destination will be in favour of the entire team.

The leader in delegating responsibilities must trust that those to whom those tasks have been given will be able to complete it. He or she must also trust that those he has as followers have his best interest as he or she does theirs.

Adapting these components in the workplace is not reliant on the leader. Everything rises and falls on leadership and that is the major problem.

The leader must first trust that the followers will trust their capability. He or she has to earn their trust and depose that trust in their capabilities as well.

Cheers!

8 0
3 years ago
Other questions:
  • Knowledge management is most popular among businesses in
    6·1 answer
  • A firm's information policy includes rules that lay out who is responsible for updating and maintaining the information in a dat
    5·1 answer
  • Clay offers to pay Diane $50 for a golf lesson for Ewan. They agree to meet on Friday to exchange the cash for the lesson. These
    5·1 answer
  • Relationship-enhancing attributions involve which of the following factors?
    7·1 answer
  • James borrows $300,000 for a home from Bank A. Bank A resells the right to collect on that loan to Bank B. Bank B securitizes th
    14·1 answer
  • Walks Softly sells customized shoes. Currently, it sells 16,000 pairs of shoes annually at an average price of $68 a pair. The c
    6·1 answer
  • A manufacturer uses activity-based costing to assign overhead costs to products. Budgeted cost information for selected activiti
    13·1 answer
  • Goandwin, Inc. 2017 Income Statement Net sales $11,418 Cost of goods sold 6,320 Selling, general, and administrative expenses 2,
    12·1 answer
  • What is the biggest thing you learned about agriculture this year?
    9·1 answer
  • Which franchise model do automobile dealerships usually follow?<br> (plato)
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!