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 makes finding answers easy, with a community of experts ready to provide you with the information you seek. Find reliable answers to your questions from a wide community of knowledgeable experts on our user-friendly Q&A platform. Our platform provides a seamless experience for finding reliable answers from a network of experienced 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 your visit. We're dedicated to helping you find the information you need, whenever you need it. We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. Thank you for using Westonci.ca. Come back for more in-depth answers to all your queries.

6. Find the average of the first 5 multiples of 4.

The source of biodiversity of plants and animals of many kinds is

Select the correct answer:Which of these elements has four valence electrons?A. Hafnium [tex]$( Hf )$[/tex]B. Radon [tex]$( Rn )$[/tex]C. Silicon [tex]\(( S

Archie Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products. Activity Cost PoolsActivity Rate Sett

A karyotype is essentially a photograph of a cell's chromosomes taken through a microscope. Researchers set up a karyotype by using chemical solutions to halt a

What is the value of [tex]\tan \left(60^{\circ}\right)[/tex]?A. [tex]\frac{1}{2}[/tex]B. [tex]\sqrt{3}[/tex]C. [tex]\frac{\sqrt{3}}{2}[/tex]D. [tex]\frac{1}{\sq

An archer standing on a 15 degree slope shoots an arrow at an angle of 28 degrees above the horizontal. How far below its original point of release does the arr

In a firm that manufactures clothing, the department responsible for actually assembling the garments could best be described as a(n):A. Cost centerB. Departmen

2.1.5 Quiz: The Age of EnlightenmentQuestion 4 of 10According to Thomas Hobbes, what motivates individuals to enter into a social contract?A. They want to escap

9. The HCF of two numbers is 16 and their LCM is 160. If one of the numbers is 80, the other number is:A. 32 B. 240 C. 120 D. 405