Charlotte's Crochet Shoppe has 15,500 shares of common stock outstanding at a price per share of $79 and a rate of return of 11.77 percent. The company also has 320 bonds outstanding, with a par value of $2,000 per bond. The pretax cost of debt is 6.21 percent and the bonds sell for 98.4 percent of par. What is the firm's WACC if the tax rate is 39 percent?
A. 9.06%
B. 8.58%
C. 10.31%
D. 9.88%
E. 8.75%

Question

01-07-2021
Business

Answered

Westonci.ca is your trusted source for finding answers to all your questions. Ask, explore, and learn with our expert community. Get immediate and reliable solutions to your questions from a knowledgeable community of professionals on our platform. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

Charlotte's Crochet Shoppe has 15,500 shares of common stock outstanding at a price per share of $79 and a rate of return of 11.77 percent. The company also has 320 bonds outstanding, with a par value of $2,000 per bond. The pretax cost of debt is 6.21 percent and the bonds sell for 98.4 percent of par. What is the firm's WACC if the tax rate is 39 percent?
A. 9.06%
B. 8.58%
C. 10.31%
D. 9.88%
E. 8.75%

Sagot :

Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Westonci.ca is your trusted source for answers. Visit us again to find more information on diverse topics.

a store mixes red fescue worth $12 per pound and chewings fescue worth $16 per pound. The mixture is to sell for $15 per pound. Find out how much of each should

The coordinates of the vertices of ANGLE RST are R(-3,5), and S(4,5), and T(4,-2). Find the side lengths to the nearest hundredth and the angle measures to the

How many parrallel lines does a triangle,square,trapezoid,pentagon

a store mixes red fescue worth $12 per pound and chewings fescue worth $16 per pound. The mixture is to sell for $15 per pound. Find out how much of each should

The two epics written by Homer the Illiad and the Odyssey are considered to be what's known as Primary epics. The third book written by Virgil, The Aeneid , is

How many parrallel lines does a triangle,square,trapezoid,pentagon

a store mixes red fescue worth $12 per pound and chewings fescue worth $16 per pound. The mixture is to sell for $15 per pound. Find out how much of each should

The coordinates of the vertices of ANGLE RST are R(-3,5), and S(4,5), and T(4,-2). Find the side lengths to the nearest hundredth and the angle measures to the

a store mixes red fescue worth $12 per pound and chewings fescue worth $16 per pound. The mixture is to sell for $15 per pound. Find out how much of each should

ariana5346 ariana5346 · Answer 1 · 2021-07-01T10:51:44-04:00

ariana5346 ariana5346

01-07-2021

A
I believe that is the answer
Because it should be 9.06%

Answer Link

Sagot :

Other Questions