Assume Lavender Corporation has a market value of $4 billion of equity and a market value of $19.8 billion of debt. What are the weights in equity and debt that are used for calculating the WACC?
A) 0.10, 0.90
B) 0.832, 0.168
C) 0.168, 0.832
D) 0.90, 0.10
Answer: C
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Which of the following statements regarding a statement of cash flows is false?
A) The most common method used by most companies for reporting operating activities is the direct method. B) Operating activities include all transactions and other events related to the earnings process. C) It requires a reconciliation of beginning and ending cash balances. D) It helps users assess a company's need for external financing.
Ulrich had cost of goods sold of $6.7 million, ending inventory of $2.2 million, and average inventory of $1.9 million. Its days' sales in inventory equals (round your final answer to the nearest whole number):
A. 35. B. 104. C. 120. D. 180. E. 60.
In order to reduce agency problems, managers may be provided compensation that includes
A) a fixed salary so managers' pay is not at risk, allowing managers to focus on the company's business. B) an option to buy the company's stock. C) a bonus based on the level of profit achieved during the year. D) incentive pay for achieving higher sales than last year.
Automating business procedures and automatically maintaining data integrity and consistency are trivial in a modern business environment
a. True b. False Indicate whether the statement is true or false