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 18 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
YES! Correct, THANKS for helping me on my review

triiciiaa

  • Member
  • Posts: 349
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Multiple sclerosis is a condition wherein the body's nervous system is weakened by an autoimmune reaction that attacks the myelin sheaths of neurons.

Did you know?

Many supplement containers do not even contain what their labels say. There are many documented reports of products containing much less, or more, that what is listed on their labels. They may also contain undisclosed prescription drugs and even contaminants.

Did you know?

Historic treatments for rheumatoid arthritis have included gold salts, acupuncture, a diet consisting of apples or rhubarb, nutmeg, nettles, bee venom, bracelets made of copper, prayer, rest, tooth extractions, fasting, honey, vitamins, insulin, snow collected on Christmas, magnets, and electric convulsion therapy.

Did you know?

More than 4.4billion prescriptions were dispensed within the United States in 2016.

Did you know?

In 1864, the first barbiturate (barbituric acid) was synthesized.

Which wavelengths of light are most effective at photosynthesis? Which wavelengths of light are most effective at photosynthesis?
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
Effective listening skills demonstrate empathy to the patient and break down barriers to communicati Effective listening skills demonstrate empathy to the patient and break down barriers to communicati
Effective communications skills are essential to the medical assistant’s career Effective communications skills are essential to the medical assistant’s career
Diaphragm. Place the thumb on a spot along the diaphragm guideline, then flex the toe above that ... Diaphragm. Place the thumb on a spot along the diaphragm guideline, then flex the toe above that ...
The Inclusive Classroom: Strategies for Effective Differentiated Instruction The Inclusive Classroom: Strategies for Effective Differentiated Instruction
Video: Cortisol (protein catabolism, gluconeogenesis, vasoconstriction & anti-inflammation)

For a complete list of videos, visit our video library