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Could you show work too? Thanks edit: thats all the info provided You are opening a Mexican restaurant in the midtown. Given below financial information
Could you show work too? Thanks
edit: thats all the info provided
You are opening a Mexican restaurant in the midtown. Given below financial information of your company, please answer the following questions, 1 through s. Loan amount: $400,000 Interest expenses: $50,000 Tax rate: 20% Equity financing: $400,000 (1) How much is the cost of equity? A. 10% B. 20% C. 30% D. 40% Equity partner share: 40% Net income: $200,000 (2) How much is the weighted average of cost (WACC)? A. 5% B. 10% C. 15% D. 20% You are opening a Mexican restaurant in the midtown. Given below financial information of your company, please answer the following questions, 1 through s. Loan amount: $400,000 Interest expenses: $50,000 Tax rate: 20% Equity financing: $400,000 (1) How much is the cost of equity? A. 10% B. 20% C. 30% D. 40% Equity partner share: 40% Net income: $200,000 (2) How much is the weighted average of cost (WACC)? A. 5% B. 10% C. 15% D. 20%Step by Step Solution
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