Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sestion: Calculate the weighted average cost of capital (WACC) for PDI. E/V80.00% Cost of equity9.40% Risk-free rate 3.00% Beta 1.28 Market equity risk premium 5.00%

Sestion:

Calculate the weighted average cost of capital (WACC) for PDI.

E/V80.00%

Cost of equity9.40%

Risk-free rate 3.00%

Beta 1.28

Market equity risk premium 5.00%

D/V20.00%

Cost of debt4.00%

Corporate tax rate40.00%

WACC 80% x 9.40%) + [20% x 4% x (1 - 40%)]= 8.00% WACC = (E/V x Re) + ((D/V x Rd) x (1 - T))

*Cost of equityRisk free rate of return + (Beta * Risk premium) = 3% + (1.28 x 5%) 0.094

Givend the above, I cannot get the following:

Sum of FCF PV =?

Terminal value =?

Present value of terminal value =?

Total value of PDI =?

Assumptions

Discount rate ?

Terminal value ?

image text in transcribedimage text in transcribedimage text in transcribed
Question 2 Which term refers to statistics that are used to test a hypothesis within a small group (sample) to make Not yet answered conclusions about a larger group (population)? Points out of 1.00 F Flag question Select one: . a. Inferential Statistics O b. Descriptive Statistics O c. Measurement Statistics O d. Confidence Statistics1. [9 marks] Answer the following, 9 multiple choice questions, Please select one answer for each question. You can also include your justification. This way, even though your answer is wrong, but you may receive 0.5 mark if your justification is reasonable. (1). Fill in the missing words to the quote: "Inferential statistical methods may be described as methods for drawing conclusions about based on computed from A. statistics, samples, populations B. populations, parameters, samples C. statistics, parameters, samples D. parameters, statistics, populations E. populations, statistics, samplesSuppose there are 20 CSUEB students in an introductory economics lecture. The following table summarizes whether they are male (M) or female (F), and whether they are majoring in economics (B) or majoring in business (B): Economics (E) Business (B) Total Male (M) 4 4 Female (F) 4 8 12 Total 8 12 20 al If a student is chosen at random, what is the probability they are a business major, i.e. P(B)? bj If a student is chosen at random, what is the probability they are male and majoring in economics, i.e. P(ME)? c) What is the probability that a randomly chosen student is female conditional on being a business major, i.e.P(FIB)? d) Being female is independent from being a business major. True or false? e) What is the probability that an economics student is chosen first and then a business student second (without replacement)? Include at least two decimal places in your

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Mathematics questions

Question

10. Describe the relationship between communication and power.

Answered: 1 week ago