Answer:
0.75%
Explanation:
In the first place, the weighted average cost of capital is the average cost of finance a firm incurs on aggregate on all its sources of finance a shown by the formula below:
WACC=(weight of equity*cost of equity)+(weight of preferred stock*cost of preferred stock)+(weight of debt*before-tax cost of debt )*(1-tax rate)
Note only debt has tax impact deduction
tax rate=40%
WACC using retained earnings:
WACC=(36%*14.7%)+( 6%* 12.2%)+(58%* 11.1%)*(1-40%)
WACC=9.89%
WACC using new common equity:
cost of new common equity=16.8%
WACC=(36%*16.8%)+( 6%* 12.2%)+(58%* 11.1%)*(1-40%)
WACC=10.64%
increase in WACC=10.64%-9.89%
increase in WACC=0.75%
Answer:
Done
Explanation:
Saving your money for financial well-being can help you with multiple opportunities. The money will later go into your family or in investments in the future, also this will give you important time of any information you need. Achieving and maintaining financial well-being is important for families and individuals, as well as your entire region. Stronger families make for stronger communities. Stronger communities encourage stronger schools. Stronger schools lead to better prepared students for education, which leads to better prepared as an adult. This will get you go have many savings in money.
Answer:
$281,260
Explanation:
Question mentions no compounding takes place here.
So adjusted property value = Value n period ago * [1+ (Adjustment factor * n)]
Adjusted property value = 287000 * [1+(-0.50% * 4)] = 287000 * [1+(-2%)] = 287,000 * 98% = $281,260 --> Answer
