reeseleprell7655
04.12.2020 •
Business
Precision Cuts has a target debt-equity ratio of .48. Its cost of equity is 16.4 percent, and its pretax cost of debt is 8.2 percent. If the tax rate is 34 percent, what is the company's WACC?
a) 11.28 percent
b) 13.20 percent
c) 12.91 percent
d) 11.72 percent
e) 12.84 percent
Solved
Show answers
More tips
- H Health and Medicine How to Treat Styes: Causes, Symptoms, and Home Remedies...
- C Computers and Internet How to Learn to Type Fast?...
- F Food and Cooking Delight for Gourmets: How to Prepare Liver Pate...
- S Style and Beauty How to braid friendship bracelets?...
- H Health and Medicine Mercury Thermometer Danger: What to do when a thermometer breaks?...
- F Food and Cooking Which Calamari Salad is the Most Delicious?...
- S Society and Politics 10 Tips for Boosting Your Self-Esteem...
- F Food and Cooking The Most Delicious and Simple Fish in Batter Recipe...
- H Health and Medicine What is Autism? Understanding the Basics of This Neurodevelopmental Disorder...
- P Philosophy How to Develop Extrasensory Abilities?...
Answers on questions: Business
- B Business Workers have been working in this unstable trench for several weeks. there is no shoring or sloping, and it s been raining off and on for several days. there is a concern...
- B Business What is the typical educational requirement for a non-entry level software programmer? high school diplomatechnical certificatebachelor’s degreemaster’s degree...
- B Business HEHEHE, I M CRAZY---YOU CAN HAVE 100 POINTS...
- H History what does the woman who is looking through the window in the open window and in the Cat in the Rain refer to ?...
- E English Pls help me plsssss I need this today...
- C Chemistry What is the difference between homogenous and heterogenous? simple answer plz i dont understand anything advanced....
- E English ADDITIONAL ACTIVITITY Research and read on jazz, popular music and OPM and write your personal impression abojt each genre....
- M Mathematics Please help! Giving brainliest!! Look at the picture below this! If it is blocked for you, just comment below and i ll explain!! Thank you so much for helping me!...
- H History Help pls ASAP Which statement best describes the Inca emperor s role in religion? A. The Incas believed that the emperor was a family member of the sun god, and he was...
- P Physics Newtons third law is called law of action and reaction?...
Ответ:
e) 12.84 percent
Explanation:
The computation of the weighted average cost of capital is as follows:
= Pre-tax cost of debt × (1 - tax rate) × weight of debt + cost of equity × weight of equity
= 8.2% × (1 - 34%) × 0.48 ÷ 1.48 + 16.4% × 1 ÷ 1.48
= 12.84%
Hence, the weighted average cost of capital is 12.84%
Thus, the correct option is e.
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Ответ:
Bank of America (NYSE:BAC) has had its fair share of missteps over the past decade, but it's also had successes. Topping the list for the latter is the progress it's made in mobile banking, which has enabled the bank to slash operating expenses in its consumer banking segment.
You can get a sense for Bank of America's success in this regard by looking at the number of people who use its mobile application. In the most recent quarter, the bank boasted 19.6 million active mobile users. That's five times the number it had in 2009. To put this in perspective, Bank of America has 60 million total clients within 45 million households.
The impact on Bank of America's transaction mix has been dramatic. Mobile check deposits are up by a factor of 10 since 2012, and now account for 16% of all deposit transactions at the North Carolina-based bank. If you also factor in ATM transactions, two-thirds of Bank of America's deposit transactions are now automated. That compares to only 35% in 2009.
Explanation: