iamlavanyasoni iamlavanyasoni

07-05-2024
Business

Answered

Currently, Forever Flowers Inc. has a capital structure consisting of 20% debt and 80% equity. Forever's debt currently has a 9% yield to maturity. The risk-free rate (rRF) is 4%, and the market risk premium (rM - rRF) is 6%. Using the CAPM, Forever estimates that its cost of equity is currently 13.5%. The company has a 25% tax rate.

What is Forever's current WACC? Round your answer to two decimal places.

Answer :

Other Questions

In 1914, which European power controlled South Africa, Northern Rhodesia, and Southern Rhodesia? A. France B. Spain C. Germany D. Great Britain

Which organization conducted hearings into alleged communist activity in the government and the media during the 1950s? A. Bureau of Public Safety B. House Un-A

Which factors must be equal in a reversible chemical reaction at equilibrium? (1) the activation energies of the forward and reverse reactions (2) the rates of

Explain the efforts made by the American government to remain neutral in any future European/Asian conflict throughout the 1930s

statistics show that internet usage in the united states has grown from just 41 percent of households in 2000 to 77 percent of households in 2010 which best des

Agent of erosion was primarily responsible for forming the long.narrow, U-shaped valleys in the finger lakes in New York State 1) continental glaciers 2) landsl

How does a monopoly control the price of its product?

susan buys a tennis racket from a store. -tennis rackets original price is $75 -all tennis rackets are on sale for 25% off the original price -tennis rackets h

One isotope of nitrogen has 7 protons and 8 neutrons. Which is the correct reference for this isotope? A. nitrogen-8 B. nitrogen-7 C. nitrogen-15 D. nitrogen-1

Which of the following aqueous solutions is the best conductor of electricity? (1) 0.10 M CH3OH (3) 0.10 M NaOH (2) 1.0 M CH3OH (4) 1.0 M NaOH