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
ValentinkaMS [17]
3 years ago
15

Braxton Corp. has no debt but can borrow at 6.7 percent. The firm’s WACC is currently 8.5 percent, and the tax rate is 35 percen

t.
a. What is the company’s cost of equity? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of equity %
b. If the firm converts to 20 percent debt, what will its cost of equity be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of equity %
c. If the firm converts to 40 percent debt, what will its cost of equity be?
d. If the firm converts to 20 percent debt, what is the company’s WACC?
e. If the firm converts to 40 percent debt, what is the company’s WACC?
WACC___%.

Business
1 answer:
Dmitry [639]3 years ago
4 0

Answer

The answer and procedures of the exercise are attached in the image below.  

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

You might be interested in
approximates the dollar cost of producing x units of a product. The manu- facturer believes it cannot make a profit when the mar
anyanavicka [17]

The question is incomplete. The complete question is :

A manufacturer believes that the cost function : $C(x) =\frac{5}{2}x^2+120 x+560$  approximates the dollar cost of producing x units of a product. The manu- facturer believes it cannot make a profit when the marginal cost goes beyond $210. What is the most units the manufacturer can produce and still make a profit? What is the total cost at this level of production?

Solution :

Given the cost function is :

$C(x) =\frac{5}{2}x^2+120 x+560$  

Now, Marginal cost = $\frac{d}{dx}C(x)$

So, if the marginal cost = $ 210, then the manufacturer also makes a profit and if it goes beyond $ 210 than the manufacturer cannot make a profit.

Therefore, we have to equate : $\frac{d}{dx}C(x)= \$ 210$

$\frac{d}{dx}C(x)= \frac{5}{2}(2x)+120 = 210$

$5x + 120 = 210$

$5x=210-120$

$5x=90$

$x=45$

So when x = 45, then C(x) = $ 8042.5

Therefore, the manufacturer $\text{can make up}$ to 45 units and $\text{still makes a profit.}$ This leads to a total cost of $ 8042.5

3 0
3 years ago
The process of gathering information about the competitive environment, including competitors' plans, activities, and products,
Sholpan [36]

Answer: (C) Competitive intelligence

Explanation:

 The competitive intelligence is one of the process of analyzing the various types of information that helps in learned abut the market, consumers and the competitors.

The main objective of the competitive intelligence is that it helps in support the various types of strategic decisions in an organization.

According to the given question, the competitive intelligence is helps in gathering the data for improving the ability of an organization in this competitive environment.

 Therefore, Option (C) is correct answer.

6 0
4 years ago
Canon began as a camera-making company but has since become a company that produces a wide range of office equipment in addition
UkoKoshka [18]

Answer:

Canon’s managers  believe in Diversity growth.

good luck

5 0
4 years ago
Any item that has a definite monetary value is able to be used as:
Alex777 [14]
An installment payment is equal payments every month, meaning it is the correct answer. (B)
7 0
3 years ago
A monopolistically competitive firm is currently earning a positive economic profit. If other firms enter the market, we would e
inna [77]

Answer: (C) will operate further from its efficient scale.

8 0
3 years ago
Other questions:
  • it is generally agreed that the role of strategy is to: options make best use of resources make profits for the organization mak
    11·1 answer
  • A client demands the return of all records and documents from an attorney even though the client has not paid the attorney's fee
    10·1 answer
  • What are capital gains on an investment?
    10·1 answer
  • A project portfolio is a useful storage medium that enables the project manager to consolidate all project information in a sing
    11·1 answer
  • Roger remembers from a business class he took years ago in college that there are several business forms to choose from. Each fo
    10·1 answer
  • A __________ is an option valuation model based on the assumption that stock prices can move to only two values over any short t
    13·1 answer
  • From theory, what are some communication channels and barriers? Now from professional experiences, what are some communication c
    13·1 answer
  • A U.S. Senator from Michigan is in favor of environmental regulations that forbid industries from disposing chemical wastes in r
    7·1 answer
  • What does Expected Family Contribution mean?
    10·2 answers
  • 1. What area of law protects the sale of a home?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!