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Margaret [11]
3 years ago
5

the required return on the stock of moe's pizza is 12.1 percent and after tax required return on the company's debt is 3.79 perc

ent. the company's market value capital structure consists of 73 percent equity. the company is considering a new project that is less risky than current operations and it feels the risk adjustment factor is minus 2.2 percent. the tax rate is 40 percent. what is the required return for the new project
Business
1 answer:
Lana71 [14]3 years ago
5 0

Answer:

7.65%

Explanation:

required return = (percent of stock x required return on stock) + (after tax cost of debt  x percent of debt) - adjustment factor

Percent of debt = 100 - 73 = 27%

(12.1 x 0.73) + (3.79 x 0.27) - 2.2 = 7.65%

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Answer:

C. $10,000 positive.

Explanation:

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= (Option strike price - spot rate) × purchased put options

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= $10,000

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Hence, the option c is correct

5 0
3 years ago
The Balance Sheet, the Statement of Cash Flows, and the ______________ are three key financial statements prepared by accountant
zaharov [31]

Answer:

The income statement

Explanation:

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3 0
3 years ago
Identify whether the statements below are true or false by dragging and dropping the appropriate term into the bin provided.
Tema [17]

<u>Solution and Explanation:</u>

1. False-   Long run Economic growth is likely to be sustainable because of finite natural resources as othe man made resources will be available to sustain growth.  

2. False-    In mordern economy posesing few natural resources will not affect a country to develop economically; human resources and man made resources will also contribute. Foreign trade can also play an important role towards growth, in the absence of abundant natural resources.

3. True-   Natural resources are vital, and mostly exhaustible. Hence it is very essential to find suitable alternatives.

4. False- Economies of 21st century depend on human capital due to depletable atural resources.

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7 0
3 years ago
You will have $ in 20 years if you set aside $2,000 at 8%. (Use the future value tables from Chapter 5.)
Romashka-Z-Leto [24]

In 20 years you'll have $5,220.

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2,000+(160×20)= 5,220.

4 0
2 years ago
Who can help me? It will be greatly appreciated.
Salsk061 [2.6K]
Hello!

I believe the correct answer is: Consumer Market.
(Confirmed by three resources).

I really hope this helped you out! :)
5 0
3 years ago
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