CoffeeStop primarily sells coffee. It recently introduced a premium coffee-flavored liquor (BF Liquors). Suppose the firm faces a tax rate of 40 % and collects the following information. If it plans to finance 10 % of the new liquor-focused division with debt and the rest with equity, what WACC should it use for its liquor division? Assume a cost of debt of 5.4 %, a risk-free rate of 2.3 %, and a market risk premium of 6.7 %.
Answers: 1
Business, 22.06.2019 04:30
Peyton taylor drew a map with scale 1 cm to 10 miles. on his map, the distance between silver city and golden canyon is 3.75 cm. what is the actual distance between silver city and golden canyon?
Answers: 3
Business, 22.06.2019 06:40
After the 2008 recession, the amount of reserves in the us banking system increased. because of federal reserve actions, required reserves increased from $44 billion to $60 billion. however, banks started holding more reserves than required. by january 2009, banks were holding $900 billion in excess reserves. the federal reserve started paying interest on the excess reserves that the banks held. what possible impact will these unused reserves have on the economy?
Answers: 1
Business, 22.06.2019 10:10
conquest, inc. produces a special kind of light-weight, recreational vehicle that has a unique design. it allows the company to follow a cost-plus pricing strategy. it has $9,000,000 of average assets, and the desired profit is a 10% return on assets. assume all products produced are sold. additional data are as follows: sales volume 1000 units per year; variable costs $1000 per unit; fixed costs $4,000,000 per year; using the cost-plus pricing approach, what should be the sales price per unit?
Answers: 2
Business, 22.06.2019 14:30
What’s the present value of a perpetuity that pays $250 per year if the appropriate interest rate is 5%? $4,750 $5,000 $5,250 $5,513 $5,788what is the present value of the following cash flow stream at a rate of 8.0%, rounded to the nearest dollar? cash flows: today (t = 0) it is $750, after one year (t = 1) it is $2,450, at t = 2 it is $3,175, and at t=3 it is $4,400. draw a time line. $7,917 $8,333 $8,772 $9,233 $9,695
Answers: 2
CoffeeStop primarily sells coffee. It recently introduced a premium coffee-flavored liquor (BF Liquo...
History, 21.01.2020 19:31
Social Studies, 21.01.2020 19:31
History, 21.01.2020 19:31
SAT, 21.01.2020 19:31
Biology, 21.01.2020 19:31
Mathematics, 21.01.2020 19:31
History, 21.01.2020 19:31
English, 21.01.2020 19:31
Mathematics, 21.01.2020 19:31
Mathematics, 21.01.2020 19:31
Mathematics, 21.01.2020 19:31
Biology, 21.01.2020 19:31
Computers and Technology, 21.01.2020 19:31