A fleet repair facility has the capacity to repair 800 trucks per month. However, due to scheduled maintenance of their equipmen
1 answer:
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Answer:
WACC = 9.86%
so correct option is d. 9.86%
Explanation:
given data
cost of equity = 11.6 percent
bonds = 6.2 percent
bonds sell = 103.2 percent
debt book value = $408,000
total assets book value= $952,000
market to book ratio = 2.74 times
to find out
what is the company's WACC
solution
we get here first Total book value of equity that is express as
Total book value of equity = Total assets book value - Total debt book value .................1
Total book value of equity = 952000 - 408000
Total book value of equity = $544000
and here market to book ratio is
market to book ratio =
so market value of equity = (2.74 × 544000) = $1490560
and
After tax cost of debt = 6.2 (1 - tax rate)
After tax cost of debt = 6.2 (1 - 0.4)
After tax cost of debt = 3.72%
and
Market value of Debt = 408000 × 103.2%
Market value of Debt = $421056
so
Total market value = $1490560 + $421056
Total market value is =$1911616
and
WACC will be
WACC = Respective costs × Respective weights
WACC =
WACC = 9.86%
so correct option is d. 9.86%
Answer:
The correct answer for you question is $53, 300, 000
Explanation:
I have attached the complete question for you refrence.
Answer : $53,300,000
Explanation:
Equity investment in Safestyle: Amount $'m
Year 2019:
Cash 50
add: Net Income 2019. 3
less: Impairment of Goodwill 2019 -1
Closing Balance 2019. 52
Year 2020:
Opening Balance 2020 52
add: Net Income 2020 1.8
less: Impairment of Goodwill 2020 -0.5
Closing Balance 2020 53.3
