Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. dusit is financed 26% by debt yielding 8.3%. inves

Dusit is financed 26% by debt yielding 8.3%. Investors require a return of 15.3% on...

90.2K

Verified Solution

Question

Accounting

Dusit is financed 26% by debt yielding 8.3%. Investors require a return of 15.3% on Dusits equity.

a.

What is the companys weighted-average cost of capital if the corporate tax rate is 35%? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Weighted-average cost of capital %

b.

What would be the companys cost of capital if it were exempted from corporate tax? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Weighted-average cost of capital %

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Evaluate the integral of f(x) below between x=1.5 and x=5.3 using Gauss-Legendre formulas for 2, 3,...

Advance Math
Q

An aluminum rod is subject to electrolysis in an aqueous solution resulting in the production of...

Chemistry
Q

A. Calculate the density of sulfur hexafluoride gas at 706 torr and 20 ?C. B. Calculate the...

Chemistry
Q

Describe an instance where you remember being the victim, perpetrator, or witness of bullying, and how...

Psychology
Q

Psilotum is distinct from most other plants in which of following ways Check all that...

Biology
Q

A spring is placed horizontally on a frictionless table. The spring constant of the spring...

Physics
Q

Identify the set of values x for which y will be a real number.y=?x-18

Basic Math
Q

A researcher wishes to conduct a study of the color preferences of new car buyers...

Statistics
Q

8- Aye has a budget of 5000 TL to...

Accounting
Q

hi this is the information that is blurry on the paper i had typed it...

Accounting
Q

Briggs Corp. has collected the following data concerning its maintenance costs for the past 6...

Accounting
Q

The total cost of developing and manufacturing a brand of cosmetics takes the form TC=0.05Q^3+aQ^2+150Q+b...

Accounting