A firm has an expected return on equity of 16% and an after-tax cost of debt of 8%. What debt-equity ratio should be used in order to keep the WACC at 12%? A) .50 B) .75 C) 1.00 D) 1.50
What is the proportion of debt financing for a firm that expects a 24% return on equity, a 16% return on assets, and a 12% return on debt? (ignore taxes) A) 54.0% B) 60.0% C) 66.7% D) 75.0%
I'm unable to calculate this, could someone help me maybe? Claire
Maybe you should go to your school lessons?
Hi Ian,
I'm not a student. Would appreciate if someone could let me know what the results are, or how to calculate these things.
Thanks! Claire
Then why do you want to know?
I've already told you how to calcuate them. Now get on with it, make the effort, show your workings, and if you get stuck, we might help some more.
If you are not a student, then why have you got a load of multiple choice questions to answer?
If you are not a student, then why have you got a load of multiple choice questions to answer?
They're to verify my daughter's work, thank you. If you don't want to help, don't bother posting.
Claire
J>
We'll post if we want to. You are pretty rude especially as you are asking for help.
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