8. A firm has a beta of 1.45. The risk-free rate is 9 per cent and the
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8. A firm has a beta of 1.45. The risk-free rate is 9 per cent and the market risk premium is 10 per cent. The firm's cost of borrowings is 12 per cent and it maintains a target debt-equity ratio of 1.5:1. The tax rate is 30 per cent. Calculate the firm's weighted average cost of capital. What is the firm's real cost of capital if inflation rate is 5 per cent?
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I am a retired teacher with 6 years of experience teaching various science subjects to high school students and undergraduate students. This background enables me to be able to help tutor students who are struggling with the science of business component of their education. Teaching difficult subjects has definitely taught me patience. There is no greater joy for me than to patiently guide a student to the correct answer. When a student has that "aha!" moment, all my efforts are worth it.
The Common Core standards are a useful yardstick for measuring how well students are doing. My students consistently met or exceeded the Common Core standards for science. I believe in working with each student's individual learning styles to help them understand the material. If students were struggling with a concept, I would figure out a different way to teach or apply that concept. I was voted Teacher of the Year six times in my career. I also won an award for Innovative Teaching Style at the 2011 National Teaching Conference.
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