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Svetradugi [14.3K]
2 years ago
13

A firm has a weighted average cost of capital of 11.68 percent and a cost of equity of 15.5 percent. The debt-equity ratio is 0.

65. There are no taxes. What is the firm's cost of debt
Business
1 answer:
asambeis [7]2 years ago
6 0

The firms Cost of Debt is 9.62%.

Data and Calculations:

Weighted average cost of capital = 11.68%

Cost of equity = 15.5%

Debt-Equity Ratio = 0.65

Without taxes, the firm's Weighted Cost of Debt (WACC) = WACC - Weighted Cost of Equity

= 11.68% - (15.5% (1 - 0.65)

= 11.68% - 5.425%

= 6.255%

Unweighted cost of debt = 6.255%/0.65

= 9.62%

Thus, the firm's cost of debt is 9.62% while the weighted cost of debt is 6.255%.

Learn more: brainly.com/question/23044852

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An organic farmer has identified three distinct groups that might be interested in his products: vegetarians, health-conscious i
Firlakuza [10]

Answer:

The correct answer is b) market segments.

Explanation:

A market segment is a group of consumers, it is mostly homogeneous either by certain characteristics or by their needs, which are identified as a market that presents similar desires or buying habits and that would potentially respond similar to the strategy developed by the marketing mix.

Through market segmentation you will be able to identify the segment to be served and establish the strategy to achieve it. At the time of segmenting the market you can do so by responding to the strategy you wish to apply:

  • Differentiated: taking into account that the segment to be attended is heterogeneous and the product or service to be offered is built to meet the particular needs of each client.
  • Undifferentiated: based on the needs that the group commonly responds. Here the product or service satisfies each client corresponding to the indicated segment in the same way.
  • Concentrated: it is the most specialized strategy of the three. The idea here is to concentrate efforts in the segment where a strong comparative advantage is achieved.
3 0
3 years ago
g 3) You are interested in purchasing an apartment complex for $2,000,000 that has Net Operating Income (NOI) of $120,000 and is
Paraphin [41]

Answer:

the cap rate is 6%

Explanation:

The computation of the cap rate is as follows:

= Net operating Income ÷ Current market value of property

= $120,000 ÷  $2,000,000

= .06

=  6%

Hence, the cap rate is 6%

We simply divided the net operating income from the Current market value of property so that the cap rate could come

4 0
3 years ago
___________ is the ideology of free-market capitalism emphasizing privatization and unregulated markets.
dexar [7]

Answer: Neoliberalism

Explanation:

 The neoliberalism is the term which is used to refers to the ideology that helps in determining the free marketing capitalism and also deals with the various types of economical ideas.

The main concept of the neoliberalism is that it basically manage the free Enterprise, competition system and also the price mechanisms on the basis of  economical policies.

It also helps in emphasizing the un-regulated the finance market and the privatization. Therefore, Neoliberalism is the correct answer.  

7 0
3 years ago
Which of the following is an effective strategy for personal saving?
trasher [3.6K]

The statement that is an effective strategy for personal saving is; Save a certain percentage of each paycheck and deposit it directly in a savings account

<h3>What is personal saving?</h3>

Personal saving can be defined as the ability of a person to save their money. Saving this money will enables them to have something to fall back to incase of unforeseen or unexpected circumstance.

The effective strategy for personal saving a person is expected to follow is for the person  to save a  percentage of each of their salary or  paycheck and deposit the money directly into their savings account.

Therefore the statement that is an effective strategy for personal saving is; Save a certain percentage of each paycheck and deposit it directly in a savings account

Learn more about personal saving here:brainly.com/question/15279000

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6 0
2 years ago
The office of the future will see mobile offices allowing employees to work from anywhere. true or false
padilas [110]

I think that the answer is True.

8 0
3 years ago
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