Question
1- Your firm is has equity of $4,870,000.00 and debt of $1,780,000.00 and the cost of the equity is 12.50% and the cost of the
1- Your firm is has equity of $4,870,000.00 and debt of $1,780,000.00 and the cost of the equity is 12.50% and the cost of the debt is 4.70%. Given that the tax rate is 33.00%, what is your firm's weighted average cost of capital (WACC)? (enter your value as a percent (i.e. 20.5 for 20.5%) tolerance is 0.1)
2-Katharine Woodland has a portfolio of 5 stocks. Xhe currently has 13.20% of ihr portfolio invested in SBUX (Starbucks Corp.) in the Restaurants sector, 16.40% in VZ (Verizon Communications) in the Integrated Telecommunication Services sector, 16.20% in COF (Capital One Financial) in the Consumer Finance sector, 17.10% in FRT (Federal Realty Investment Trust) in the Retail REITs sector, 37.10% in CAG (Conagra Brands) in the Packaged Foods & Meats sector. They have expected returns of: 33.70%, 35.85%, 30.58%, 28.44%, 20.64% respectively---what is the expected return on the portfolio?
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