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Marrrta [24]
2 years ago
9

Wentworth's Five and Dime Store has a cost of equity of 11.4 percent. The company has an aftertax cost of debt of 5 percent, and

the tax rate is 35 percent. If the company's debt–equity ratio is .74, what is the weighted average cost of capital?
Business
1 answer:
Irina-Kira [14]2 years ago
8 0

Answer:

WACC = 6.66 %

Explanation:

<em>Weighted average cost of capital is the average cost of all of the long-term types of finance used by a company weighted according to the that amount of finance used in relation to the total pool of fund</em>

WACC = (Wd×Kd)  +  (We×Ke)

After-tax cost of debt = Before tax cost of debt× (1-tax rate)

Kd-After-tax cost of debt = 5%

Ke-Cost of equity = 11.4%

Wd-Weight f debt -74%

We-Weight of equity = 26%

WACC = (0.74× 5%)  + (0.26 × 11.4%) = 6.66 %

WACC = 6.66 %

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Each of these actions assures a certain mission:
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Therefore, you must always protect your computer by using a strong antivirus and frequently scanning the computer. <span />
8 0
2 years ago
Daniels Corporation uses the step-down method to allocate service department costs to operating departments.
larisa86 [58]

Answer:

C 503,980 dollars

Explanation:

\left[\begin{array}{ccccc}&General&Physical&Sales&After-sales\\$General&&2,000&27,000&14,000\\$Physical&1,000&&38,000&7,000\\$Direct \: Cost&36,550&70,300&412,500&480,880\\$Allocate G&-36,550&1,700&22,950&11,900\\$Subtotal&0&72,000&435,450&492,780\\$Allocate P&0&-72000&60,800&11,200\\$Total&&&496,250&503,980\\\end{array}\right]

We determinate each service deparment rate:

general: 36,550 / (2,000 + 27,000 + 14,000) = 0.85

we then assign cost of general department and repeat the process for physical

then for physical we do the same:

72,000 / (38,000 + 7.000) = 1.60

5 0
2 years ago
Speed, size, and strength are thought to be important factors in football performance. The article "Physical and Performance Cha
Ilia_Sergeevich [38]

Answer:

no

Explanation:

H0: mean of sample=105

Ha: mean of sampe≠ 105

t-statistic= (population mean-sample mean)/(standard deviation/√sample size)

t-statistic= (105-103.3)/(16.3/√33)

t-statistic= 0.5991

degress of freedom= 32

for alpha 0.05, p-value from t-distributino table is 1.697

since t-statistic is less than the p-value, null hypothesis is accepted.

There is no sufficient evidence to conclude that the mean weight for non-top-20 starters is less than 105 the known value for top-20 teams

4 0
2 years ago
Lana needs to create forms for tables in her database to ensure consistency with data entry. What is the easiest way to achieve
Rashid [163]

Answer:

Form wizard

Explanation:

In microsoft access, form wizard is a menu that user can choose to create forms with specific adjustment rather than pre-determined design in the normal form option.

Using form wizard, User can select the fields that he/she wants to include and letting you determine how the data is sorted and grouped.

3 0
2 years ago
Microsoft and a smaller rival often have to select from one of two competing technologies, A and B. The rival always prefers to
Mrrafil [7]

Answer:

True

Explanation:

Microsoft matrix along with his rivals. There are two ways to use the technology. Microsoft and its rival can move simultaneously. The equilibrium strategy can be determined y pay off matrix. The both companies use pure strategy. The criteria for pure strategy is max-min and min-max. The max-min strategy means select least case from all the best cases and min-max is selecting the best case from all the least cases.

4 0
2 years ago
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