Branson works for a firm that is expanding into a completely new line of business. He has been asked to determine an appropriate WACC for an averageminusrisk project in the expansion division. Branson finds two publicly traded standminusalone firms that produce the same products as his new division. The average of the two firm's betas is 1.40. Further, he determines that the expected return on the market portfolio is 11.00% and the riskminusfree rate of return is 3.00%. Branson's firm finances 70% of its projects with equity and 30% with debt, and has a beforeminustax cost of debt of 8% and a corporate tax rate of 20%. What is the WACC for the new line of business?
Answers: 2
Business, 22.06.2019 07:40, carliehanson9908
Alicia has a collision deductible of $500 and a bodily injury liability coverage limit of $50,000. she hits another driver and injures them severely. the case goes to trial and there is a verdict to compensate the injured person for $40,000 how much does she pay?
Answers: 1
Business, 22.06.2019 10:40, Yskdl
Why do you think the compensation plans differ at the two firms? in particular, why do you think kaufmann’s pays commissions to salespeople, while parkleigh does not? why does parkleigh offer employees discounts on purchases, while kaufmann’s does not?
Answers: 3
Business, 22.06.2019 19:00, leeenaaa95
What is an equation of the line in slope intercept formm = 4 and the y-intercept is (0,5)y = 4x-5y = -5x +4y = 4x + 5y = 5x +4
Answers: 1
Branson works for a firm that is expanding into a completely new line of business. He has been asked...
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