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saul85 [17]
2 years ago
8

target debt-equity ratio of .40. Its cost of equity is 11.8 percent and its cost of debt is 6.5 percent. If the tax rate is 21 p

ercent, what is the company’s WACC?
Business
1 answer:
olga nikolaevna [1]2 years ago
4 0

Answer:

9.90%

Explanation:

Debt-equity=debt/equity=0.40( debt=0.40 while equity is  1 since 0.40/1=0.40)

weight of debt=0.40/(0.40+1)=28.57%

weight of equity=1/(0.40+1)=71.43%

cost of equity=11.80%

cost of debt=6.50%

tax rate=21%

WACC=(weight of equity*cost of equity)+(weight of debt*cost of debt)*(1-tax rate)

WACC=(71.43% *11.80%)+(28.57%*6.50%)*(1-21%)

WACC=9.90%

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Answer it ....the question is in the pic​
Tatiana [17]

Answer:

business activities in India

<h3>1) Manufacturing - </h3>

  • When product is manufacture or made to that it cn be sold in Market
<h3> </h3><h3>2) storage - </h3>

  • After the product is ready it required some space to store until it would sold in the market

<h3>3) transporting</h3>

  • as per the demand it will transport from one place to another

<h3>4) financing - </h3>

  • It requires some money to meet the expense before solding a product

<h3>5) marketing</h3>
  • to let people know about the product so that more products will be sold

There are other activities also such as managing, accounting etc

4 0
2 years ago
Pepsodent launched a new product that could whiten teeth, fight decay, and maintain fresh breath. Observing that Pepsodent did n
Scorpion4ik [409]

Answer:

flank attack

Explanation:

Based on the scenario being described within the question it can be said that this is an example of a flank attack. This is the marketing strategy that focuses on attacking the different weak points of the competitors in the market. Which is what Colgate is doing by focusing on the one aspect that Pepsodent has not targeted in order to overtake all of their market share on their newly launched product.

8 0
3 years ago
Read 2 more answers
Bradford Services Inc. (BSI) is considering a project that has a cost of $10 million and an expected life of 3 years. There is a
balandron [24]

Answer:

Expected Net Cash Flow = $3.8 million

Net Present Value (NPV) = $1.0492 million

Explanation:

Given Cash outflow = $10 million

Provided cash inflows as follows:

Particulars           Good condition         Moderate condition        Bad Condition

Probability                  30%                               40%                                  30%

Cash flow                $9 million                     $4 million                       $1 million

Average expected cash flow each year = ($9 million X 30 %) + ($4 million X 40%) + ($1 million X 30%) = $2.7 million + $1.6 million + $0.3 million = $4.6 million

Three year expected cash flow = ($4.6 million each year X 3) - $10 million = $13.8 million - $10 million = $3.8 million

While calculating NPV we will use Present Value Annuity Factor (PVAF) @12% for 3 years = \frac{1}{(1 + 0.12){^1}} + \frac{1}{(1 + 0.12){^2}} + \frac{1}{(1 + 0.12){^3}} = 2.402

NPV = PV of inflows - PV of Outflows = $4.6 million X 2.402 - $10 million = $11.0492 million - $10 million = $1.0492 million

Expected Net Cash Flow = $3.8 million

Net Present Value (NPV) = $1.0492 million

3 0
3 years ago
Sally and Andy are partners in Just Hats, LLC. Andy works in the business for an agreed salary draw of $4,000 per month. Sally h
den301095 [7]

Answer:

Net income allocated to sally is $112000

Explanation:

Sally invested $200000 and Andy invested $100000, which means Andy's  investment is half of Sally's investment. So he will receive the half of what Sally will get.

Let

Sally's pay be x

Andy's pay be x/2

Total Net income is 168000 dollars.

So, putting it in an equation, we get

(x+x/2)=168000

x(1+0.5)=168000

x(1.5)=168000

x= 168000/1.5

x=112000

So Sally's share will be $112000

Andy's share will be x/2

=112000/2

=56000

So Andy share will be $56000

4 0
2 years ago
The journal entry for the purchase of inventory on account using the perpetual inventory system is:.
Solnce55 [7]

The journal entry for the inventory purchased will be to record the sale and another one to record the cost of the sale.

<h3>What is a journal entry?</h3>

It should be noted that a journal entry is used to record the financial activities of a company.

In this case, the journal entry for the purchase of inventory on account using the perpetual inventory system is to record the sale and another one to record the cost of the good.

Learn more about inventory on:

brainly.com/question/24868116

7 0
2 years ago
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