sahaitong1844
12.08.2020 •
Business
The yield to maturity on a company’s debt is 6.2% per year and the company’s cost of equity financing is 10.9% per year. The book value of the debt is $30.0 million and the book value of the equity is $15.0 million. The company’s tax rate is 32%. The market value of the debt is $36.9 million and the market value of the equity is $27.1 million. What is the company’s annual weighted average cost of capital?
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Ответ:
$900 and $1,077.50.
Explanation:
The computation of the Nominal GDP for year 1 and the year 2 is shown below:
Nominal GDP for year 1:
= Number of golf balls × selling price + Number of pizzas × selling price
= 100 golf balls × $3 + 75 pizzas × $8
= $300 + $600
= $900
Nominal GDP for year 2:
= Number of golf balls × selling price + Number of pizzas × selling price
= 110 golf balls × $3.25 + 80 pizzas × $9
= $357.50 + $720
= $1077.50