Answer:
The firm's unleveraged beta is 1.0251
Explanation:
Hamada's equation is used to separate the financial risk of a levered firm from its business risk.
The Hamada equation:
Bu= Bl/(1 + (1 − T)(D/E))
Bl = 1.4
wd = 0.36
Tax rate = 35%
D/E = wd / (1 – wd) = 0.5625 = 56.25%
= 1.4/ (1+(1-0.35)(0.5625))
=1.4/ 1 + (0.65)(0.5625)
=1.4/1.36
= 1.0251
Answer:
11.06%
Explanation:
Cost of equity = (D1/Current price) + Growth rate
Cost of equity = [(1.00*1.07)/26.35] + 0.07
Cost of equity = 0.04061 + 0.07
Cost of equity = 0.11061
Cost of equity = 11.06%
So, Ubees's cost of internal common equity is 11.06%.
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Macroeconomics is important because it allows the public to understand the economy as a whole, fiscal policy and global economic policy.
Answer:
150 tickets
Explanation:
Writing out needed parameters :
Price per student ticket (price of one student ticket) = PHP 75
The total revenue made from ticket sales ; (Total amount earned from the sale of student tickets) = PHP 11,250
The number of student tickets sold will be:
Total amout earned from sale / cost per ticket
PHP 11250 / PHP 75
= 150 tickets