subject
Business, 27.11.2019 06:31 tynitenaire

Afirm has 1 million shares of common stock outstanding with a market price of $5.00 each. it has 2,500 bonds outstanding, each with a market value of $1,100. the bonds mature in 13 years, have a coupon rate of 10 percent, and pay coupons annually. the firm's beta is 1.3, the risk-free rate is 4.5 percent, the market risk premium is 7 percent, and the tax rate is 34 percent. what is the weighted average cost of capital (wacc)? a) 5.45 percentb) 6.53 percentc) 9.49 percentd) 10.81 percente) 11.65 percent

ansver
Answers: 1

Another question on Business

question
Business, 21.06.2019 20:40
Alocal club is selling christmas trees and deciding how many to stock for the month of december. if demand is normally distributed with a mean of 100 and standard deviation of 20, trees have no salvage value at the end of the month, trees cost $20, and trees sell for $50 what is the service level?
Answers: 2
question
Business, 22.06.2019 05:00
Which of the following are considered needs? check all that apply
Answers: 1
question
Business, 22.06.2019 10:00
In a chapter 7 bankruptcy, a debtor:
Answers: 2
question
Business, 22.06.2019 10:00
Scenario: you have advised the owner of bond's gym that the best thing to do would be to raise the price of a monthly membership. the owner wants to know what may happen once this price increase goes into effect. what will most likely occur after the price of a monthly membership increases? check all that apply. current members will pay more per month. the quantity demanded for memberships will decrease. the number of available memberships will increase. the owner will make more money. bond's gym will receive more membership applications.
Answers: 1
You know the right answer?
Afirm has 1 million shares of common stock outstanding with a market price of $5.00 each. it has 2,5...
Questions
question
Social Studies, 11.03.2021 18:40
question
Mathematics, 11.03.2021 18:40
question
Mathematics, 11.03.2021 18:40
question
Mathematics, 11.03.2021 18:40
Questions on the website: 13722361