This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Which item below is not a guideline for effective diversification? Diversify A) among ... (Read 15 times)

P68T

  • Hero Member
  • *****
  • Posts: 509
on: Jul 11, 2018
Which item below is not a guideline for effective diversification? Diversify
 
  A)
 
  among tangibles and intangibles.
  B)
 
  among assets and liabilities.
  C)
 
  on a global basis.
  D)
 
  within asset groups.

Question 2

Arrow Corp. has a WACC of 8.78, a before-tax cost of debt of 6, and a tax rate of 40. If the firm is financed 30 with debt and the balance with equity, what is the cost of equity?
 
  A) 10.50
  B) 11.00
  C) 11.50
  D) 12.00


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Carliemb17

  • Sr. Member
  • ****
  • Posts: 325
Reply #1 on: Jul 11, 2018
Answer to Question 1

B

Answer to Question 2

B
Explanation: B) Ke = (WACC - wdKd(1-t))/We = (8.78 - .30  6  (1-.40 )/.7 = 11.0.


P68T

  • Member
  • Posts: 509
Reply 2 on: Jul 11, 2018
:D TYSM

hramirez205

  • Member
  • Posts: 345
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Not getting enough sleep can greatly weaken the immune system. Lack of sleep makes you more likely to catch a cold, or more difficult to fight off an infection.

Did you know?

Malaria mortality rates are falling. Increased malaria prevention and control measures have greatly improved these rates. Since 2000, malaria mortality rates have fallen globally by 60% among all age groups, and by 65% among children under age 5.

Did you know?

Stroke kills people from all ethnic backgrounds, but the people at highest risk for fatal strokes are: black men, black women, Asian men, white men, and white women.

Did you know?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

Did you know?

A cataract is a clouding of the eyes' natural lens. As we age, some clouding of the lens may occur. The first sign of a cataract is usually blurry vision. Although glasses and other visual aids may at first help a person with cataracts, surgery may become inevitable. Cataract surgery is very successful in restoring vision, and it is the most frequently performed surgery in the United States.

The effective temperature, or black body temperature, of the Sun (5777 K) is the temperature a black The effective temperature, or black body temperature, of the Sun (5777 K) is the temperature a black
Safe and effective interpersonal communication Safe and effective interpersonal communication
If you want to show differences between items at the same time, a bar graph is more effective than a If you want to show differences between items at the same time, a bar graph is more effective than a
Hand signals are an effective emergency backup to ra- dio communication systems. Shown are several ... Hand signals are an effective emergency backup to ra- dio communication systems. Shown are several ...
Effective Leadership and Management in Nursing Effective Leadership and Management in Nursing
On the Flexible Item Selection Task (FIST) children are presented with three cards On the Flexible Item Selection Task (FIST) children are presented with three cards
Video: Autonomic Nervous System Animation

For a complete list of videos, visit our video library