{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-09-12T11:18:42-04:00", "answer_date": "2024-09-12 11:18:42", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "10479327", "url": "\/study-help\/questions\/olsen-outfitters-incorporated-believes-that-is-optimal-capital-structure-consists-10479327", "question_creation_date_js": "2024-09-12T11:18:42-04:00", "question_creation_date": "Sep 12, 2024 11:18 AM", "meta_title": "[Solved] olsen Outfitters Incorporated believes th | SolutionInn", "meta_description": "Answer of - olsen Outfitters Incorporated believes that is optimal capital structure consists of 6 5 % common equity and 3 5 % deb | SolutionInn", "meta_keywords": "olsen,outfitters,incorporated,believes,optimal,capital,structure,consists,6,5,common,equity", "question_title_h1": "olsen Outfitters Incorporated believes that is optimal capital structure consists of 6 5 % common equity and 3 5 % debt and is tax rate", "question_title": "olsen Outfitters Incorporated believes that is optimal capital structure consists of 6", "question_title_for_js_snippet": "olsen Outfitters Incorporated believes that is optimal capital structure consists of 6 5 common equity and 3 5 debt and is tax rate is 2 5 Olsen must raise additional Capital to fund its upcoming expansion The Firm will have a $ 2 million of retained earnings with a cost of RS equals 1 3 new common stock in an amount of 8 million dollars would have it cost of r e equals 1 5 5 furthermore all Olsen can raise up to 4 million dollars of debt at an interest rate of Rd equals 1 1 and an additional 5 million dollars of debt at Rd equals 1 5 the CFO estimates that a proposed expansion would require an estimate of 1 1 2 million dollars what is the wacc for the last dollar raise to complete the expansion round your answer to two decimal places", "question_description": "
olsen Outfitters Incorporated believes that is optimal capital structure consists of <\/span>6<\/mn>5<\/mn>%<\/mo><\/mrow><\/math> common equity and <\/span>3<\/mn>5<\/mn>%<\/mo><\/mrow><\/math> debt and is tax rate is <\/span>2<\/mn>5<\/mn>%<\/mo><\/mrow><\/math> Olsen must raise additional Capital to fund its upcoming expansion The Firm will have a $<\/span>2<\/mn><\/mrow><\/math> million of retained earnings with a cost of RS equals <\/span>1<\/mn>3<\/mn>%<\/mo><\/mrow><\/math> new common stock in an amount of <\/span>8<\/mn><\/mrow><\/math> million dollars would have it cost of r e equals <\/span>1<\/mn>5<\/mn>.<\/mn>5<\/mn>%<\/mo><\/mrow><\/math> furthermore all Olsen can raise up to <\/span>4<\/mn><\/mrow><\/math> million dollars of debt at an interest rate of Rd equals <\/span>1<\/mn>1<\/mn>%<\/mo><\/mrow><\/math> and an additional <\/span>5<\/mn><\/mrow><\/math> million dollars of debt at Rd equals <\/span>1<\/mn>5<\/mn>%<\/mo><\/mrow><\/math> the CFO estimates that a proposed expansion would require an estimate of <\/span>1<\/mn>1<\/mn>.<\/mn>2<\/mn><\/mrow><\/math> million dollars what is the wacc for the last dollar raise to complete the expansion round your answer to two decimal places<\/span> <\/div><\/span> <\/div><\/div>", "transcribed_text": "", "related_book": { "title": null, "isbn": null, "edition": null, "authors": null, "cover_image": null, "uri": null, "see_more_uri": "" }, "free_related_book": { "isbn": "", "uri": "", "name": "", "edition": "" }, "question_posted": "2024-09-12 11:18:42", "see_more_questions_link": "\/study-help\/questions\/business-economics-2023-September-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/study-help\/technical-communication\/our-company-has-decided-to-purchase-a-tool-to-1997826", "description": "=+ Our company has decided to purchase a tool to perform Task A. Which make and model of the tool should we purchase, and from which supplier should", "stars": 0 }, { "url": "\/at-the-start-of-2015-the-new-orleans-fine-food", "description": "At the start of 2015, the New Orleans Fine Food Company budgeted before-tax income as follows: Actual before tax income for 2015 was: Required Florence Roden, the owner of the company, is pleased...", "stars": 3 }, { "url": "\/study-help\/questions\/olsen-outfitters-incorporated-believes-that-is-optimal-capital-structure-consists-10479327", "description": "olsen Outfitters Incorporated believes that is optimal capital structure consists of 6 5 % common equity and 3 5 % debt and is tax rate is 2 5 % Olsen must raise additional Capital to fund its...", "stars": 3 }, { "url": "\/study-help\/questions\/the-following-graph-shows-the-domestic-supply-of-and-demand-4142396", "description": "The following graph shows the domestic supply of and demand for maize in Guatemala. The world price (Pw) of maize is $240 per ton and is represented by the horizontal black line. Throughout the...", "stars": 3 }, { "url": "\/study-help\/questions\/south-africa-has-experienced-energy-crisis-in-the-past-few-1000045", "description": "South Africa has experienced energy crisis in the past few years. This has led to the many rounds of excessive loadshedding and the Central University of Technology is concerned about the effects of...", "stars": 3 }, { "url": "\/study-help\/questions\/while-the-media-focused-on-the-downward-spiral-of-the-1000012", "description": "While the media focused on the downward spiral of the physical retail sector, it seems Amazon was busy ramping up its roll-out of physical stores, a development that many observers have perceived as...", "stars": 3 }, { "url": "\/study-help\/questions\/a-convenience-store-uses-a-markup-of-6-0-1003551", "description": "A convenience store uses a markup of 6 0 % on selling price of $ 9 . If this yield a gross profit of $ 5 . 4 0 , what was the cost?", "stars": 3 }, { "url": "\/study-help\/questions\/grababite-a-food-delivery-business-targets-an-average-delivery-time-1004687", "description": "Grab-a-Bite, a food delivery business, targets an average delivery time of 30 minutes for each order and delivers 200 orders\/hr on average. Each delivery partner is assigned to the order as soon as...", "stars": 3 }, { "url": "\/study-help\/questions\/the-company-cookies-sa-has-the-following-cost-items-1-1001426", "description": "The company Cookies S.A. has the following cost items: 1. Water for the cookie recipe 2. Water to wash the molds 3. Alcohol to disinfect the molds before use 4. Self-adhesive for cookie boxes 5....", "stars": 3 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/exercise-917-direct-materials-and-direct-labor-variances-l094-lo95-10479326", "next": "\/study-help\/questions\/question-4-41-read-the-scenario-below-and-then-answer-10479328" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Finance", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-finance" }, { "name": "olsen Outfitters Incorporated believes that is optimal capital structure consists of 6", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/olsen-outfitters-incorporated-believes-that-is-optimal-capital-structure-consists-10479327" } ], "skill_details": { "skill_id": "13", "skill_name": "Finance", "parent_id": "1" } }1" } }