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NEW QUESTION: 1
The WACC of a firm equals 10.67%. The pre-tax cost of debt equals 8.4%, the firm pays 38% taxes and the firm's equity holders expect a rate of return of 17%. The firm's debt-to-equity ratio equals ________.
A. 1.16
B. 1.41
C. 0.86
D. 0.72
Answer: A
Explanation:
Explanation/Reference:
Explanation:
Let E/(D+E)
A. Then,
WACC = (1-A)*(1-t)*RD + A*RE, where t is the tax rate. Therefore,
10.67% = (1-A)*(1-38%)*8.4% + A*17%. Hence, A = E/(D+E) = 0.463 and (D+E)/E = 1/0.463 = 2.16.
This gives D/E = 1.16.
NEW QUESTION: 2
A. Option C
B. Option B
C. Option A
D. Option D
Answer: A
NEW QUESTION: 3
Which statements are true regarding a prebuilt Salesforce computer telephony integration (CTI) adapter for
different telephony systems? (Choose 2)
A. It allows voicemails to be captured and stored as attachments on cases
B. It is an intermediary between a telephony system and a Salesforce CRM call center user
C. It is a server based software program that controls the behavior of a Salesforce SoftPhone
D. It utilizes the SoftPhone capability from within the Salesforce application
Answer: B,D