How did we get 9.38% and why are we using this for cost of capital. Is there

Fantastic news! We've Found the answer you've been seeking!

Question:

How did we get 9.38% and why are we using this for cost of capital. Is there a calculation or formula? Why are we using this as the discount rate?

Related Book For answer-question

Cost Management Measuring Monitoring and Motivating Performance

ISBN: 978-0470769423

2nd edition

Authors: Leslie G. Eldenburg, Susan K. Wolcott

See More Books

Posted Date: Apr 27, 2024 08:09 AM

See More Questions

This assignment requires you to complete the 2022 tax reporting for a fictional woman named Anna Smith. Question 1 T1 - step 4 - line 66 This is Anna's taxable income Answer: Question 2 T1 - step...
Required Question # 1 (40 marks, How has Pepsi Corporation performed over the 10-year time period from 1981 to 1990? In your critical discussion focus on qualitative and quantitative indicators....
Q1 The spectrum of two light sources A and B are shown in Figure 1(a) and Figure 1(b) respectively: W Light Source A 10. wwwth [nm] 1.045,24 11.A Light Source B MA MA 1 ww.alanghem MA Figure 1(a)...
Hydrazine, N2H4, is a base that ionizes to give N2H5+ and OH (Kb = 1.7 10-6). You add magnesium sulfate to a hydrazine solution. Calculate the concentration of Mg2+ ion when magnesium hydroxide,...
Write a statement that declares a String variable named city. The variable should be initialized so it references an object with the string San Francisco.
In the previous example, suppose that these are all of the entries in Freedonias BOP table. Calculate the value of errors and omissions. TABLE 11.2 Balance-of-Payments Example Merchandise exports...
Using the corporate tax rate schedule given in Table, perform the following: a. Calculate the tax liability, after-tax earnings, and average tax rates for the following levels of corporate earnings...
Explain the basics of activity-based costing. Explain the benefits and limitations of activity-based costing.(7-8) Explain cost flows in an activity-based costing system. Differentiate between...
You now need to calculate the cost of debt for SNA. Go to finra-markets.morningstar.com, enter SNA as the company, and find the yield to maturity for each of SNA's bonds. What is the weighted average...
Write a static method areTriangular() that takes three double arguments and returns true if they could be the sides of a triangle (none of them is greater than or equal to the sum of the other two).
Why should attributes be private?
Write a program HowMany that takes a variable number of command-line arguments and prints how many there are.
Clock. Write a program that displays an animation of the second, minute, and hour hands of an analog clock. Use the method StdDraw.pause(1000) to update the display roughly once per second.
Write a program that reads in integers (as many as the user enters) from standard input and prints the maximum and minimum values.
Determine benefits and challenges in implementing RFID in retail industry include introduction and Methodology Write a paper in which define; what is the situation/problem is that you intend to...
a. Show that the expansion of q(x) in ascending powers of x can be approximated to 10 2x + Bx 2 + Cx 3 where B and C are constants to be found. b. Find the percentage error made in using the series...
Why is macroeconomic forecasting so difficult? Does this difficulty mean economics is a worthless field of study?
Which of the following statements are positive in nature and which are normative? a. A tax cut will raise interest rates. b. A reduction in the payroll tax would primarily benefit poor and...
a. Calculate the total percentage growth in average labor productivity in the U.S. economy for the 1950s, 1960s, 1970s, 1980s, 1990s, and 2000s. Define average labor productivity for any year as real...

How did we get 9.38% and why are we using this for cost of capital. Is there

Question:

WACC = 9.38% for the target D/V of 20.99 WACC = 9.38% for the target D/V of 20.99

Expert Answer:

To calculate the Weighted Average Cost of Capital WACC we ... View the full answer

Cost Management Measuring Monitoring and Motivating Performance

Students also viewed these finance questions