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Author Question: The preferred capital structure weights to be used in the weighted average cost of capital are ... (Read 533 times)

abern

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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

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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


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abern

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Reply #2 on: Jul 11, 2018
TY


fffftttt

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Reply #3 on: Jul 11, 2018
Happy to Help


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