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
tiny-mole [99]
3 years ago
12

Shirley’s and Son have a debt-equity ratio of .60 and a tax rate of 35 percent. The firm does not issue preferred stock. The cos

t of equity is 10 percent and the pre-tax cost of debt is 8 percent. What is Shirley’s weighted average cost of capital?
a. 8.4%
b. 6.1%
c. 9.4%
d. 8.2%
e. 9.1%
Business
1 answer:
ikadub [295]3 years ago
8 0

Answer:

d. 8.2%

Explanation:

The computation of the WACC is shown below:

= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of  common stock) × (cost of common stock)

where,  

Weighted of debt = Debt ÷ total firm

= (0.60 ÷ 1.60)

= 0.375

And, the weighted of common stock = (Common stock ÷ total firm)

                                                              = 1 ÷ 1.60

                                                              = 0.625  

The total firm is

= 0.60 + 1

= 1.60

Now put these values to the above formula  

So, the value would equal to

= (0.375 × 8%) × ( 1 - 35%) + (0.625 × 10%)

= 1.95% + 6.25%

= 8.20%

You might be interested in
What is Febuary 14th >?
docker41 [41]

Answer: valentines day.

Explanation: hope this helps

3 0
2 years ago
Read 2 more answers
g The fundamental limitation of a matrix structure is that it ________. A. introduces more errors in the decision-making process
kvasek [131]

Answer:

The correct answer is the option B: Institutes a dual hierarchy that violates the unity-of-command principle.

Explanation:

To begin with, in the business management field the concept known as "Matrix structure" or matrix management as well is refered to the dynamic way of organizating the company that has the characteristic of having the employees of the business answering directly to two or more superiors of leaders instead of just one. Therefore that in this type of organizational structure sometimes the matters of certain departments tend to interfere or collide with the objectives of others. That is the main reason why it does violates the principle of unity-of-command described in the organizational theory.

8 0
3 years ago
Why are yeezys so expensive?
Natasha2012 [34]
The price behind the Yeezy allows for the item to be well known. Much like Jordan brand sneakers, its name represents a higher fiscal status.
8 0
3 years ago
Read 2 more answers
A limited liability company is created through filing the ________ with a state official.
krok68 [10]

The formation of a limited liability company is accomplished by filing the limited liability company (with a state official.

A limited liability company is a corporate structure that protects its owners from being personally sued for repayment of the company's debts or liabilities (LLC).

How we form an LLC?

  • Although the rules for LLCs differ per state, there are some broad similarities. The first step for owners or members is to pick a name.
  • Articles of incorporation are filed, together with a fee paid to the state. After that, the articles of incorporation can be recorded and filed with the state.
  • These articles define each LLC member's rights, responsibilities, powers, liabilities, and other obligations.
  • The paperwork also include the names and addresses of the LLC's members, the name of the registered agent, and the company statement of purpose.

To learn more about LLC

Visit: brainly.com/question/14151441

#SPJ4

3 0
1 year ago
Uncertainty refers to situation when there is more than one possible outcome to decision and where the probability of each speci
SVETLANKA909090 [29]

A risk is behind the uncertainty that means situation when there is more than one possible outcome to decision and where the probability of each specific outcome is not know.

<h3>What is a risk?</h3>

This refers to the chance either high or low that any hazard will actually cause somebody harm.

For instance, the act of working alone away from your office can be a hazard and the risk of personal danger may be high.

It is true that uncertainty that means situation when there is more than one possible outcome to decision and where the probability of each specific outcome is not know, but a risk is behind tne situation.

Read more about risk

brainly.com/question/1224221

#SPJ1

7 0
1 year ago
Other questions:
  • Kendra owns a sporting goods store. She is in court because of a breach of contract lawsuit against her supplier. One of the ter
    15·1 answer
  • Craigmont uses the allowance method to account for uncollectible accounts. its year-end unadjusted trial balance shows accounts
    13·1 answer
  • The process of conducting business on an international scale is a part of _____. globalization Communism mercantilism Socialism
    10·2 answers
  • In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has
    9·1 answer
  • Which of the following statements is true? a. The higher the discount rate, the higher the present value. b. The process of accu
    14·1 answer
  • Suppose that the U.S. government determines that cigarette smoking creates social costs not reflected in the current market pric
    12·1 answer
  • You're a hardcore gamer, and you want to build the ultimate video game e-commerce site. You can think of a number of special fea
    9·1 answer
  • If the firm sells its product at the market price of $10 per unit, how many workers should the firm employ to maximize profit if
    5·1 answer
  • Calculate Tim's marginal revenue and marginal cost for the first seven frying pans he produces, and plot them on the following g
    13·1 answer
  • Loc Nguyen sold his personally owned boat for $6,000. Loc is not self-employed and he did not have any outstanding loans on the
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!