Beta= 1.3
Debt to equity ratio= 0.4
Market rate of return= 11.6%
= 11.6/100
= 0.116
Tax rate= 32%
= 32/100
= 0.32
Risk free rate= 3.3%
= 3.3/100
= 0.033
Pretax cost of debt= 7.2%
= 7.2/100
= 0.072
The firm's WACC can be calacluated as follows
RS= 0.033+1.3(0.116-0.033)
= 0.033+1.3(0.083)
= 0.033+0.1079
= 0.1409
WACC= (1/1.4)(0.1409)+(2/1.4) (0.072)(1-0.32)
= (0.7142)(0.1409) + (1.4285)(0.072)(0.68)
= 0.1006+0.0699
= 0.1705(100)
= 17.05%
Hence the firm's WACC is 17.05%
The answer is 21 pounds 7 ounces.
Answer:
a)
Step-by-step explanation:
Answer:
I don't really understand what the question you are asking is, is there a question that goes along with this?
Answer:
<em>There is no y value so I think you mean to solve for x</em>
<em>Here's how we do it!: </em>
<em>1/2(x-12) = 4</em>
<em>Add 12...</em>
<em>1/2(x) = 4</em>
<em>Divide by 1/2...</em>
<em>x = 8!</em>
<em>x equals 8 in this case</em>
