Determine the WACC for Delta Corporation, which manufactures miniature triaxial accelerometers for space-restricted applications. The financing profile, with interest rates, is as follows: $3 million in stock sales at 8% per year, $4 million in bonds at 9%, and $6 million in retained earnings at 11% per year.

What will be an ideal response?


Total financing = 3 + 4 + 6 = $13 million

WACC = (3/13)(8%) + (4/13)(9%) + (6/13)(11%)
= 1.85% + 2.77% + 5.07%
= 9.69%

Trades & Technology

You might also like to view...

In general, how much endplay should ball-bearing motors have?

a. 1/32" to 1/16" b. 1/4" to 1/2" c. 5/8" to 3/4" d. 1" to 1-1/4"

Trades & Technology

The layout-crew hand signal shown in the figure above indicates _____.


a. turning point
b. use long rod
c. observation completed
d. move up

Trades & Technology

According to the law of conservation, when matter changes state its ________ remains the same

A) volume B) energy C) weight D) mass

Trades & Technology

The ambient temperature around a diode increases. Assuming all else remains the same then

A) IR will decrease and IF will increase B) IR will increase and IF will decrease C) IR will decrease and VF will increase D) IR will increase and IF will increase

Trades & Technology