What is the weighted average cost of capital?
What will be an ideal response?
The weighted average cost of capital (WACC) approach to capital budgeting involves forecasting the all-equity free cash flows of the firm and then finding the value of the levered firm by discounting the all-equity free cash flows at an appropriate WACC. It is a one-step procedure for finding the value of the operating assets plus the value of the interest tax shields. The weighted average cost of capital is the weighted sum of the after-tax required rate of return on the firm's debt and the required rate of return on the firm's levered equity. The weight for the after-tax rate of return on the firm's debt is the ratio of the market value of the debt to the market value of total assets. The weight for the rate of return on the firm's levered equity is the ratio of the market value of the equity to the market value of total assets. Once the total value of the firm is found, the market value of equity is found by subtracting the market value of the debt from the value of the levered firm.
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Which kind of social media networks are smaller communities likely to join or create?
A) blog B) niche C) Internet D) video E) commercial
A member contacts Alana to complain about parking. Every time she brings her children to the zoo, the members-only parking lot is full, and she is forced to park farther away in the general admission parking lot
When Alana receives such calls, she should most likely: A) refer the problem to the maintenance department B) identify whether the complaint is real or perceived C) allow customers to express their feelings D) avoid explaining the cause of the problem E) offer to cancel the membership