« previous next »

Author Question: The preferred capital structure weights to be used in the weighted average cost of capital are ... (Read 503 times)

abern

  • Hero Member
  • *****
  • Posts: 533
on: Jul 11, 2018
The preferred capital structure weights to be used in the weighted average cost of capital are ________.
 
  A) book value weights
  B) nominal weights
  C) historic weights
  D) target weights

Question 2

Calculate the tax effect from the sale of the existing asset. (See Table 11.4)
 
  What will be an ideal response?


fffftttt

  • Sr. Member
  • ****
  • Posts: 322
Reply #1 on: Jul 11, 2018
Answer to Question 1

D

Answer to Question 2

Tax:
105,000 - 100,000 = 5,000 capital gain  0.4 = 2,000
 52,000 recaptured depreciation  0.4 = 20,800
Total tax liability 22,800


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

abern

  • Hero Member
  • *****
  • Posts: 533
Reply #2 on: Jul 11, 2018
TY


fffftttt

  • Sr. Member
  • ****
  • Posts: 322
Reply #3 on: Jul 11, 2018
Happy to Help


« previous next »
 

Did you know?

Ether was used widely for surgeries but became less popular because of its flammability and its tendency to cause vomiting. In England, it was quickly replaced by chloroform, but this agent caused many deaths and lost popularity.

Did you know?

To maintain good kidney function, you should drink at least 3 quarts of water daily. Water dilutes urine and helps prevent concentrations of salts and minerals that can lead to kidney stone formation. Chronic dehydration is a major contributor to the development of kidney stones.

Did you know?

The first oncogene was discovered in 1970 and was termed SRC (pronounced "SARK").

Did you know?

The first-known contraceptive was crocodile dung, used in Egypt in 2000 BC. Condoms were also reportedly used, made of animal bladders or intestines.

Did you know?

Aspirin may benefit 11 different cancers, including those of the colon, pancreas, lungs, prostate, breasts, and leukemia.

Vienna: Social Structure and Social Interaction Vienna: Social Structure and Social Interaction
The lymph node structure. The lymph node structure.
Structure of the human b2-adrenergic receptor Structure of the human b2-adrenergic receptor
Structure of the penis Structure of the penis
Overall structure of section of macula Overall structure of section of macula
Structure of immunoglobulin molecules Structure of immunoglobulin molecules
Video: Effect of blood chemistry - stimuli, hyperventilation response and hypoventilation response

For a complete list of videos, visit our video library