Question
WACC Compare Trout, Inc. with Salmon Enterprises, using the balance sheet of Trout and the market data of Salmon for the weights in the weighted average cost of capital. Trout, Inc.: Current Assets: $2,000,000 Current Liabilities: $1,000,000 Long-term Assets: $7,000,000 Long-Term Liabilities: $5,000,000 Owner’s Equity: $3,000,000 Salmon Enterprises Bonds Outstanding 3,000 selling at $980 Common Stock Outstanding 260,000 selling at $23.40 If the after-tax cost of debt is 8% for both companies and the cost of equity is 12%. The tax rate is 24%. Question at position 10 10 1 point Question at position 10 The weight Trout's debt component is _______%. The weight Trout's debt component is _______%. 62.50 Question at position 11 11 2 points Question at position 11 Adjusted wacc for Trout _________% Adjusted wacc for Trout _________% 9.50 Question at position 12 12 1 point
Answer
Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum