A firm has a beta of 1.3 and a debt-to-equity ratio of .4. The market rate of return is 11.6

percent, the tax rate is 32 percent, and the risk-free rate is 3.3 percent. The pretax cost of debt

is 7.2 percent. What is the firm's WACC?

Answers

Answer 1

The WACC of the firm is 17.05%

The first step is to write out the parameters given in the question;

Beta= 1.3

Debt to equity ratio= 0.4

Market rate of return= 11.6%

= 11.6/100

= 0.116

Tax rate= 32%

= 32/100

= 0.32

Risk free rate=  3.3%

= 3.3/100

= 0.033

Pretax cost of debt= 7.2%

= 7.2/100

= 0.072

The firm's WACC can be calculated as follows

RS= 0.033+1.3(0.116-0.033)

= 0.033+1.3(0.083)

= 0.033+0.1079

= 0.1409

WACC= (1/1.4)(0.1409)+(2/1.4) (0.072)(1-0.32)

= (0.7142)(0.1409) + (1.4285)(0.072)(0.68)

= 0.1006+0.0699

= 0.1705(100)

= 17.05%

Hence the firm's WACC is 17.05%

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Related Questions

Geometry please help me need help I don’t know how to do it

Answers

Answer:

A'(0,-8) B'(5,-7) C'(3,0) D'(2,-5)

A''(0,8) B''(-5,7) C''(-3,0) D''(-2,5)

Step-by-step explanation:

first everything is shifted down 8 units (x,y-8), so we get A'(0,-8) B'(5,-7) C'(3,0) D'(2,-5)

then you multiply by -1 A''(0,8) B''(-5,7) C''(-3,0) D''(-2,5)

Find the surface area of a can of fruit with a height of 8 cm and a diameter of 6 cm.

A.288
B.104.52
C.76.26
D.48

Answers

Answer:

D . 48

6*8=48

It would be right answer

Which of the binomials below is a factor of this expression?
16x2 + 40xy + 25y2

Answers

(4x+5y)2 is the right answer

16x²+40xy + 25y²

(4x+5y) (4x+5y)

(4x+5y)²

I hope I helped you^_^

Find the value of a.
A. 58
B. 130
C. 86
D. 65

Answers

Answer:

[tex]C. \ \ \ 86[/tex]°

Step-by-step explanation:

1. Approach

In order to solve this problem, one must first find a relationship between arc (a) and arc (c). This can be done using the congruent arcs cut congruent segments theorem. After doing so, one can then use the secants interior angle to find the precise measurement of arc (a).

2. Arc (a) and arc (c)

A secant is a line or line segment that intersects a circle in two places. The congruent segments cut congruent arcs theorem states that when two secants are congruent, meaning the part of the secant that is within the circle is congruent to another part of a secant that is within that same circle, the arcs surrounding the congruent secants are congruent. Applying this theorem to the given situation, one can state the following:

[tex]a = c[/tex]

3. Finding the degree measure of arc (a),

The secants interior angle theorem states that when two secants intersect inside of a circle, the measure of any of the angles formed is equal to half of the sum of the arcs surrounding the angles. One can apply this here by stating the following:

[tex]86=\frac{a+c}{2}[/tex]

Substitute,

[tex]86=\frac{a+c}{2}[/tex]

[tex]86=\frac{a+a}{2}[/tex]

Simplify,

[tex]86=\frac{a+a}{2}[/tex]

[tex]86=\frac{2a}{2}[/tex]

[tex]86=a[/tex]

Find all excluded values for the expression.
That is, find all values of for which the expression is undefined.
3v
------
2v+10


If there is more than one value, separate them with commas.

Answers

Answer:

-5

Step-by-step explanation:

For an expression to be undefined, the denominator must be equal to 0

Therefore, we must equate the denominator in the expression to 0

2v + 10 = 0

2v = 0 - 10

2v = -10

v = -10/2

v = -5

So in order for the expression to be undefined, v must be equal to -5

the number of multiples of a given number is infinite ( )​

Answers

Answer:

make an 8 horizontal

oooookkkk

Answer:

TRUE

The number of multiples of a given number is finite is a false statement. The number of multiples of a given number is infinite.

Examples:

Multiples of 2 = 2,4,6,8,10,…..

Multiples of 3 = 3,6,9,12,15,18,…

Multiples of 4 = 4, 8, 12, 16, 120, 24….

∴ The number of multiples of a given number is infinite .

Answer From Gauth Math

What is the period of the graph of y=2 cos (pie/3 x ) +3
A.2
B.3/pie
C.6
D.pie/3

Answers

Equate what is inside cosine with [tex]2\pi[/tex], base period and solve for x,

[tex]2\pi=\frac{\pi}{3}x[/tex]

[tex]6\pi=\pi x[/tex]

[tex]\boxed{x=6}[/tex]

Hope this helps :)

Answer the following. The scale on a map is 1:100000. Therefore 1cm on the map would equal how many kilometres on the ground? ​

Answers

Answer: 10 km

Step-by-step explanation:

1cm is equal to 10km on ground.

What is map scale?

The ratio between a distance on a map and its actual distance on the ground is known as the map's scale. Since scale must vary across a map due to the curvature of the Earth's surface, this straightforward idea is made more difficult. This change makes the idea of scale significant in two different ways.

Given

A scale of 1:1,000,000 means that anything on the map that is 1 ‘unit’ in length represents something that is one million ‘units’ in length.

So two points 1 cm apart on the map will be one million centimetres apart in real life. Divide a million by 100 if you prefer the distance in metres. And divide that figure by 1,000 if you want it in kilometres.

1,000,000/100*1000 = 10km

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NO LINKS OR ANSWERING QUESTIONS YOU DON'T KNOW!!!

Chapter 11 part 2:

What are three different properties of logarithmic functions when encountering the operations of addition, subtraction, and multiplication? Provide an example of each.

Answers

The three main log rules you'll encounter are

log(A*B) = log(A) + log(B)log(A/B) = log(A) - log(B)log(A^B) = B*log(A)

The first rule allows us to go from a log of some product, to a sum of two logs. In short, we go from product to sum. The second rule allows us to go from a quotient to a difference. Lastly, the third rule allows to go from an exponential to a product.

Here are examples of each rule being used (in the exact order they were given earlier).

log(2*3) = log(2) + log(3)log(5/8) = log(5) - log(8)log(7^4) = 4*log(7)

----------------

Here's a slightly more complicated example where the log rules are used.

log(x^2y/z)

log(x^2y) - log(z)

log(x^2) + log(y) - log(z)

2*log(x) + log(y) - log(z)

Hopefully you can see which rules are being used for any given step. If not, then let me know and I'll go into more detail.

15. Five boys went to see the CIRCUS. Four of them had Rs.5 each and the fifth boy had Re.1 more than the entrance ticket price. IF with the whole amount (which the 5 boys had), the boys were able to just buy the entrance ticket for all the 5, cost of the entrance ticket per person was​

Answers

Answer:

20+(x+1) = 5x

x=21/4

x= 5.25

The entrance ticket per person can be calculated using algebraic equation. We have create the algebraic expression as per the question.

The entrance ticket per person is Rs. 5.25.

Given:

Total boys are 5

4 boys has 5 rupee each so total rupee are [tex]=5\times 4=20[/tex].

Let the entrance ticket per boy is [tex]x[/tex].

One boy had 1 rupee more than entrance ticket [tex](x+1)[/tex].

Write the algebraic expression to calculate the entrance ticket per person.

[tex]5x=20+(x+1)\\5x=20+x+1\\5x-x=20+1\\4x=21\\x=5.25[/tex]

Thus, the entrance ticket per person is Rs. 5.25.

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sketch the graph of y=x(x-6)^​

Answers

Answer:

i have attached pic of the graph

i hope this helps you

two gubernatorial aspirants amp in two different states in Nigeria have probabilities of 2/9 and 4/11 respectively of winning and impending election find the probability that both of them win in their respective regions?

Answers

Probability of First = 2/9

Probability of Second = 4/11

Probability of both winning = 2/9 + 4/11

= 22/99 + 36/99

= 58/99

Answer is 58/99 probability of them both winning

Must click thanks and mark brainliest

Please help me find limit​

Answers

9514 1404 393

Answer:

  -13/11

Step-by-step explanation:

Straightforward evaluation of the expression at x=1 gives (1 -1)/(1 -1) = 0/0, an indeterminate form. So, L'Hopital's rule applies. The ratio of derivatives is ...

  [tex]\displaystyle\lim_{x\to 1}\dfrac{n}{d}=\dfrac{n'}{d'}=\left.\dfrac{\dfrac{4}{3\sqrt[3]{4x-3}}-\dfrac{7}{2\sqrt{7x-6}}}{\dfrac{5}{2\sqrt{5x-4}}-\dfrac{2}{3\sqrt[3]{2x-1}}}\right|_{x=1}=\dfrac{4/3-7/2}{5/2-2/3}=\dfrac{8-21}{15-4}\\\\=\boxed{-\dfrac{13}{11}}[/tex]

2m-t=sm+5 you would have to find m

Answers

Answer:

m=5+t/2-s

Step-by-step explanation:

arrange like terms

2m-sm=5+t

factotise m in the first side of the equation

m(2-s)=5+t

divide both sides by (2-s)

therefore m=5+t/2-s

Compare and contrast measures of central tendency and measures of variability.

Answers

Answer:

While central tendency tells you where most of your data points lie, variability summarizes how far apart your points from each other. Data sets can have the same central tendency but different levels of variability or vice versa. Together, they give you a complete picture of your data.

Step-by-step explanation:

What is the common ratio for this geometric sequence?
27, 9, 3, 1, ...

Answers

Answer:

27:9 3:1.................

suppose sin(theta)=2/5, use the trig identity sin^2(theta)+cos^2(theta)=1 and the trig identity tan(theta)=sin(theta)/cos(theta) fine tan(theta) in quadrant I. round to ten-thousandth.

Answers

Answer:

tanθ ≅ 0.4364

Step-by-step explanation:

find the area of the circle use 3.14 for pi d=4 m

Answers

Answer:

The area of circle is 12.56m sq.

i nedd help due today plzzzz answer fast

Answers

Answer:

Option A, m⁴/n²

Multiply the exponent 6 with the exponents of m and n

A jar of honey is $2.40. How much do 4 jars of honey cost

Answers

Answer:

It would cost you 9.6 dollar .

I hope it is helpful mark me as brainlest and follow me for more good answer plz♥️♥️

$2.40 x 4: $9.60

Proof:

There are 4 windows in the living room. Each window has 1 set of blinds and 2 panels of curtains. The blinds cost $20 each. Each curtain panel cost $28. How much do the window treatments cost?

Answers

4X2=8 8x28= 224
4x20= 80
80+224=304


$304 total

Answer:

$304

Step-by-step explanation:

4 Windows (each window has 1 blind and 2 panels of curtains)

1 blind = $20 * 4 = $80

1  panels curtains = $28 * 2 = $56 * 4 = $224

$80 + $224 = $304

2/5 = 6/ = 10/30 = 14/


Please tell asap

Answers

Answer:

6/15.

14/42.

Step-by-step explanation:

2/5 = 6/x

Cross multiply:

2x = 5*6

x = 15

Similarly:

10/30 = 14/x

10x = 30*14

x = 420/10

x = 42.

What is the perimeter of CDE?
A. 37.8 units
B. 39 units
C. 32.5 units
D. 35.6 units

Answers

Answer: 32.5 units (choice C)

This value is approximate.

=============================================================

Explanation:

To find the perimeter, we simply add up the lengths of the three external sides.

The horizontal side from D to E is 16 units long since |-10-6| = 16. I subtracted the x coordinates of the points and applied absolute value. You could also count out the spaces and you should count 16 spaces from D to E.

Unfortunately, the diagonal lengths aren't as straight forward. We have two options here: The pythagorean theorem, or the distance formula.

I'll go with the distance formula.

Let's find the distance from C to D, aka the length of side CD

[tex]C = (x1,y1) = (-1,-2)\\\\D = (x2,y2) = (-10,0)\\\\d = \sqrt{(x_1 - x_2)^2 + (y_1 - y_2)^2}\\\\d = \sqrt{(-1-(-10))^2 + (-2-0)^2}\\\\d = \sqrt{(-1+10)^2 + (-2-0)^2}\\\\d = \sqrt{(9)^2 + (-2)^2}\\\\d = \sqrt{81 + 4}\\\\d = \sqrt{85}\\\\d \approx 9.2195\\\\[/tex]

Side CD is roughly 9.2195 units long.

Repeat this idea to find the length of CE

[tex]C = (x1,y1) = (-1,-2)\\\\E = (x2,y2) = (6,0)\\\\d = \sqrt{(x_1 - x_2)^2 + (y_1 - y_2)^2}\\\\d = \sqrt{(-1-6)^2 + (-2-0)^2}\\\\d = \sqrt{(-7)^2 + (-2)^2}\\\\d = \sqrt{49 + 4}\\\\d = \sqrt{53}\\\\d \approx 7.2801\\\\[/tex]

Side CE is roughly 7.2801 units long

The perimeter of triangle CDE is approximately...

P = DE+CD+CE

P = 16 + 9.2195 + 7.2801

P = 32.4996

This then rounds to 32.5 units. The answer is choice C.

Please help, question attached.

Answers

9514 1404 393

Answer:

TrueFalse

Step-by-step explanation:

Dilation has no effect on angle measures, so ∠A = ∠A'.

Point A is the center of dilation, so doesn't move. Any line through point A will still go through point A after dilation. Lines AD and A'D' are not distinct.

Which equation is the result of subtracting the second equation from the first?
4x-6y=13
-5x+2y=5

Answers

Answer:

the answer is

-x-8y=8

or, x + 8y= -8

Step-by-step explanation:

4x - 6y = 13 - (5x + 2y = 5)

or, 4x - 6y = 13

- 5x - 2y = -5

-------------------------

- x - 8y = 8

The sum of 'n' terms of an arithmetic sequence is 4n^2+3n. What is the first term, the common difference, and the sequence?

Answers

Answer:

d=8 and a=7

Step-by-step explanation:

The sum of a arithmetic sequence is given by (n/2)*(2a+(n-1)d). Comparing coefficients with the given Sn, we have; a-d/2=3 and d/2=4, d=8 and a=7. The sequence is 7, 15, 23, 31, 39

Find the 100th term of the sequence 4, 7, 10, 13...

a) 301
b) 313
c) 281
d) 279

Answers

Answer:

A

Step-by-step explanation:

The first term of the sequence is 4, the common difference is 3. So the equation of this sequence is 4+(n-1)*3 or 1+3*n. Plug in n=100

Solve each equation.
1) 14=3m + 4

Answers

The answer for this question is
M=3 1/3
M= 10/3 is the correct answer

Use absolute value to express the distance between -12 and -15 on the number line


A: |-12-(-15)|= -37
B: |-12-(-15)|= -3
C: |-12-(-15)|= 3
D: |-12-(-15)|= 27​

Answers

C
I-12-(-15)l
l-12+15l
l3l = 3

if k = p+2q/3 , find the value of p when k=7 and q=3​

Answers

Answer:

p = 5

Step-by-step explanation:

hopefully it is clear and understandable :)

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