Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Aggressive growth funds are highly speculative and seek large profits from capital gains.
What Is an Aggressive Growth Fund?
An aggressive growth fund is a mutual fund that seeks capital gains by investing in the shares of growth company stocks. Investments held in these funds are companies that demonstrate high growth potential, but also carry greater risk.
What is the advantage of aggressive growth?
Growth has its advantages; it enables a company to reach more customers, generate more sales, and put money back in the business.
Are aggressive growth funds a good investment?
Aggressive growth funds are identified in the market as offering above average returns for investors willing to take some additional investment risk. They are expected to outperform standard growth funds by investing more heavily in companies they identify with aggressive growth prospects.
Learn more about aggressive growth fund:
brainly.com/question/14698110
#SPJ4
The appropriate response is collaboration and self-intrigue. Oligopoly is a market structure in which few firms has the vast dominant part of piece of the overall industry. An oligopoly is like a syndication, aside from that as opposed to one firm, at least two firms rule the market.
Answer:
After cost of debt is 4.27%
Cost of equity of 15.75%
WACC is 7.37%
Explanation:
US Steel cost of debt can be ascertained dividing the interest expense by the total value of debt since that gives the percentage of the debt paid as coupon interest to bondholders;
cost of debt =$214.0million/$3,160.million=6.77%
after tax cost of debt(Kd) =7.13%*(1-0.37)=4.27%
Cost of equity can be computed using the below formula:
Ke=Rf+beta*(Mp)
Rf is the risk free rate of 2.5%
Mp is the market premium of 5%
beta is 2.65
Ke=2.5%
Ke=2.5%+(2.65*5%)=15.75%
WACC=Ke*E/V+Kd*D/V
E is weight of equity of 1.17
D is the weight of debt 3.16
V is the sum of the weights (1.17+3.16)=4.33
WACC=(15.75%*1.17/4.33)+(4.27%*3.16/4.33)=7.37%