subject
Business, 30.11.2019 05:31 arnold2619

Uppose your firm has decided to use a divisional wacc approach to analyze projects. the firm currently has four divisions, a through d, with average betas for each division of 0.9, 1.0, 1.6, and 1.7, respectively. assume all current and future projects will be financed with 50 debt and 50 equity, the current cost of equity (based on an average firm beta of 1.0 and a current risk-free rate of 4 percent) is 13 percent and the after-tax yield on the company’s bonds is 6 percent. what will the waccs be for each division?

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 09:20
Which statement best defines tuition? tuition is federal money awarded to a student. tuition is aid given to a student by an institution. tuition is money borrowed to pay for an education. tuition is the price of attending classes at a school.
Answers: 1
question
Business, 22.06.2019 20:30
Read the overview below and complete the activities that follow.apartment complexes often look for ways to recruit new tenants and retain current tenants. although apartment complexes offer the tangible benefit of shelter to their tenants, many apartment complexes also offer additional services to tenants to encourage tenants to stay or to support the rent prices. the following scenario identifies the several service gaps of a company that runs an apartment complex as well as solutions for reducing these service gaps.concept review: customers have certain expectations about how a service should be delivered. a service gap occurs when the delivery of a service fails to meet customer expectations. there are four types of service gaps: knowledge gap, standards gap, delivery gap, and the communications gap. it is important for marketers to identify these gaps and develop strategies for minimizing them.match the example or solution to the appropriate service gap category.1. wait for repairs 5. train employees well2. understand expectations 6. incentives for tenants3. do not overpromise 7. family movie night4. empower employees 8. delayed lawn careservice gap example solutionknowledge gap standards gap delivery gap communication gap
Answers: 3
question
Business, 22.06.2019 22:40
The uptowner just paid an annual dividend of $4.12. the company has a policy of increasing the dividend by 2.5 percent annually. you would like to purchase shares of stock in this firm but realize that you will not have the funds to do so for another four years. if you require a rate of return of 16.7 percent, how much will you be willing to pay per share when you can afford to make this investment?
Answers: 2
question
Business, 23.06.2019 00:30
Bruno's pizza restaurant makes full payment of $8,300 on an account payable to stella's cheese co. stella's would record this transaction with a
Answers: 3
You know the right answer?
Uppose your firm has decided to use a divisional wacc approach to analyze projects. the firm current...
Questions
question
SAT, 04.11.2020 18:40
question
Chemistry, 04.11.2020 18:40
Questions on the website: 13722367