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Licemer1 [7]
3 years ago
5

Filter Corp. maintains a debt-equity ratio of .45. The cost of equity is 14.7 percent, the pretax cost of debt is 8.1 percent, a

nd the marginal tax rate is 34 percent. What is the weighted average cost of capital?
Business
1 answer:
trapecia [35]3 years ago
7 0

Answer:

11.78%

Explanation:

Weighted average cost of capital WACC determines firms cost of capital. It includes all sources of finance which are included in firms capital structure. The WACC is calculated with given formula:  

WACC = E/V Re + D/V * Rd (1 - T)

Re = cost of equity

V = Firms Market value of Debt and Equity

Rd = Cost of debt

E = market value of equity

D = market value of debt

T = Marginal Tax rate

WACC = 14.7 * 1 / 1.45 + 8.1 * 0.45 / 1.45 (1 - .34)

WACC = .1013 + 0.0165

WACC = 11.78%

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contact

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The closing paragraph of a cover letter is where you can mention your contact information and request for an interview.
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When a person whose duty is conditional leads the other party to rely on his noninsistence on the condition, the condition will
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3 0
3 years ago
You view tea and scones as perfect complements, and you prefer to consumer one cup of tea with one scone. Also, your indifferenc
vodka [1.7K]

Answer:

Infinity

Explanation:

In the case when the tea and scones are considered to be the perfect complements also you give preference one cup of tea over the one scone

Plus the indifferent curve with tea should be plotted on the vertical axis

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8 0
2 years ago
A group of 10 people have the following annual incomes: $24,000, $18,000, $50,000, $100,000, $12,000, $36,000, $80,000, $10,000,
gogolik [260]

Answer:

48.65%

Explanation:

Given Income are written in increasing order

First Quintile        10,000  12,000

Second Quintile  16,000   18,000

Third Quintile      24,000  24,000

Fourth Quintile    36,000  50,000

Fifth Quintile        80,000  100,000

                                                           Total Income   % share

First Quintile        10,000  12,000         22,000           5.95

Second Quintile  16,000   18,000         34,000           9.19

Third Quintile      24,000  24,000         48,000          12.97

Fourth Quintile    36,000  50,000        86,000          23.24

Fifth Quintile        80,000  100,000      <u>180,000</u>         <u>48.65</u>

Total income in the economy              <u>370,000</u>         <u>100%</u>

The percentage of the total income of the highest quintile is 48.65%

4 0
2 years ago
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