The following information relates to the a Division of Eco Enterprises:
Interest rate on debt capital: 9%
Cost of equity capital: 13%
Market value of debt capital: $49 million
Market value of equity capital: $79 million
Income tax rate: 40%
On the basis of this information, Atlas's weighted-average cost of capital is closest to (Do not round your intermediate calculations.) :
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The following information relates to the a Division of Eco Enterprises: Interest rate on debt capital: 9% Cost of equity capital: 13% ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
While trying to access a secure Web page, Karen gets an error telling her the domain names for the site and the certificate are mismatched. The site is a small "Mom and Pop" Web site, but she's about to order $1500.00 worth of merchandise.
Answers (1)
Which of the following is an outflow of cash? a. The sale of the company's common stock b. Profitable operations c. The sale of equipment d. The payment of cash dividends
Answers (1)
Blossom Inc., a real estate developing company, was accounting for its long-term contracts using the completed contract method prior to 2021. In 2021, it changed to the percentage-of-completion method.
Answers (1)
The Holmes Company's currently outstanding bonds have a 9% coupon and a 12% yield to maturity. Holmes believes it could issue new bonds at par that would provide a similar yield to maturity.
Answers (1)
Mr. Decker invested $20,000 in cash in his new business. How does the company record the investment? (A) credit Cash and debit Owner's Equity (B) credit Cash and debit Retained Earnings (C) credit Cash and debit Investments (D) debit Cash and credit
Answers (1)
New Questions in Business
Preparing a Budgeted Income Statement Oliver Company provided the following information for the coming year: Units produced and sold 160,000 Cost of goods sold per unit $6.30 Selling price $11 Variable selling and administrative expenses per unit $1.
Answers (1)
What is NOT one of the three primary resources that families have to reach financial goals?
Answers (1)
Interest groups ___. Are most often set up by or work for elites and corporations Work to influence laws and policies Work to influence court rulings All of these answers
Answers (1)
What if the tile work had proceeded as contracted and looked good, but STR refused to pay, saying it didn't meet their personal satisfaction (even though the contract didn't mention this option). Could STR refuse to pay?
Answers (1)
You want to create a slide that lists the pros and cons of using cloud storage as part of your presentation on business technology. Which pre-set layout would you want to use? A. Content with caption B. Title only C.
Answers (2)