You and your friend went shopping. You bought 2 hats and 3 pairs of gloves for $28.25. Your friend bought 1 hat and 1 pair of gloves for $12.25. How much did one hat cost? How much did one pair of gloves cost? (Answers should reflect the real world scenario by including appropriate units.)

Answers

Answer 1

Answer:

One pair of gloves costs $3.75.

Step-by-step explanation:

Systems of equations

x=hats y=gloves

2x+3y=28.25  

x+y=12.25

2(12.25-y)+3y=28.25

24.5+y=28.25

y=3.75


Related Questions

Given matrix A and matrix B. Use this matrix equation, AX=B, to determine the variable matrix X.

A=[3 2 -1]
[1 -6 4]
[2 -4 3]
B=[33]
[-21]
[-6]

Answers

To determine the variable matrix \(\displaystyle X\) using the equation \(\displaystyle AX=B\), we need to solve for \(\displaystyle X\). We can do this by multiplying both sides of the equation by the inverse of matrix \(\displaystyle A\).

Let's start by finding the inverse of matrix \(\displaystyle A\):

\(\displaystyle A=\begin{bmatrix} 3 & 2 & -1\\ 1 & -6 & 4\\ 2 & -4 & 3 \end{bmatrix}\)

To find the inverse of matrix \(\displaystyle A\), we can use various methods such as the adjugate method or Gaussian elimination. In this case, we'll use the adjugate method.

First, let's calculate the determinant of matrix \(\displaystyle A\):

\(\displaystyle \text{det}( A) =3( -6)( 3) +2( 4)( 2) +( -1)( 1)( -4) -( -1)( -6)( 2) -2( 1)( 3) -3( 4)( -1) =-36+16+4+12+6+12=14\)

Next, let's find the matrix of minors:

\(\displaystyle M=\begin{bmatrix} 18 & -2 & -10\\ 4 & -9 & -6\\ -8 & -2 & -18 \end{bmatrix}\)

Then, calculate the matrix of cofactors:

\(\displaystyle C=\begin{bmatrix} 18 & -2 & -10\\ -4 & -9 & 6\\ -8 & 2 & -18 \end{bmatrix}\)

Next, let's find the adjugate matrix by transposing the matrix of cofactors:

\(\displaystyle \text{adj}( A) =\begin{bmatrix} 18 & -4 & -8\\ -2 & -9 & 2\\ -10 & 6 & -18 \end{bmatrix}\)

Finally, we can find the inverse of matrix \(\displaystyle A\) by dividing the adjugate matrix by the determinant:

\(\displaystyle A^{-1} =\frac{1}{14} \begin{bmatrix} 18 & -4 & -8\\ -2 & -9 & 2\\ -10 & 6 & -18 \end{bmatrix}\)

\(\displaystyle A^{-1} =\begin{bmatrix} \frac{9}{7} & -\frac{2}{7} & -\frac{4}{7}\\ -\frac{1}{7} & -\frac{9}{14} & \frac{1}{7}\\ -\frac{5}{7} & \frac{3}{7} & -\frac{9}{7} \end{bmatrix}\)

Now, we can find matrix \(\displaystyle X\) by multiplying both sides of the equation \(\displaystyle AX=B\) by the inverse of matrix \(\displaystyle A\):

\(\displaystyle X=A^{-1} \cdot B\)

Substituting the given values:

\(\displaystyle X=\begin{bmatrix} \frac{9}{7} & -\frac{2}{7} & -\frac{4}{7}\\ -\frac{1}{7} & -\frac{9}{14} & \frac{1}{7}\\ -\frac{5}{7} & \frac{3}{7} & -\frac{9}{7} \end{bmatrix} \cdot \begin{bmatrix} 33\\ -21\\ -6 \end{bmatrix}\)

Calculating the multiplication, we get:

\(\displaystyle X=\begin{bmatrix} 3\\ 2\\ 1 \end{bmatrix}\)

Therefore, the variable matrix \(\displaystyle X\) is:

\(\displaystyle X=\begin{bmatrix} 3\\ 2\\ 1 \end{bmatrix}\)

\(\huge{\mathfrak{\colorbox{black}{\textcolor{lime}{I\:hope\:this\:helps\:!\:\:}}}}\)

♥️ \(\large{\underline{\textcolor{red}{\mathcal{SUMIT\:\:ROY\:\:(:\:\:}}}}\)

PLS HELP WILL MARK BRAINLIEST !

PLS HELP WILL MARK BRAINLIEST !

Answers

Answer:

1) 8x³ - x² + 1

2) 5a - 3b - 10c

3 17x²y - 7xy²

Step-by-step explanation:

Just combine like terms, since everything is adding, all you have to do is add everything with the same symbol. Make sure you watch for negatives so you know when to add or subtract you numbers!

Hope this helps!

A, B, and C are collinear, and point B lies in between point A and point C. Point D is a point not on the line. Given thatmZABD = (x - 2)° and mZCBD = (5x), find mZCBD.

Answers

Answer:

70degrees

Explanation:

The diagrammatical representation of the statement is as shown;

Since the sum of angles on a straight line is 180degrees, then;

m8x+2 + 5x = 180

13x + 2 = 180

13x = 180 + 2

13x = 182

x = 182/13

x = 14

Get mmmmHence the measure of m

are the following statements true or false? false 1. if two row interchanges are made in sucession, then the determinant of the new matrix is equal to the determinant of the original matrix. false 2. if is zero, then two rows or two columns are the same, or a row or a column is zero. false 3. the determinant of is the product of the diagonal entries in . false 4. .

Answers

Statements are False: 1. interchanging rows changes determinant. 2. determinant zero not implies specific rows. 3. determinant not product of diagonal entries. 4. determinant is scalar not matrix.

What is matrix ?

A matrix is a rectangular array of numbers or other mathematical objects, typically arranged in rows and columns. Matrices are often denoted using capital letters, such as A, B, and C. Each element of a matrix is identified by its row and column indices,

1) False, If two row interchanges are made in succession, the determinant of the new matrix is the negative of the determinant of the original matrix.

2) False, If the determinant of a matrix is zero, it does not necessarily mean that two rows or two columns are the same or a row or column is zero, it only means that the matrix is singular, i.e. non-invertible and it also can mean that the matrix is linearly dependent.

3) False, The determinant of a matrix is not always equal to the product of the diagonal entries, it is a scalar value calculated through a specific method called matrix expansion which is based on the entries of the matrix and it depends on the size of the matrix.

4) False, The determinant of a matrix is a scalar value, it cannot be equal to another matrix.

Statements are False: 1. interchanging rows changes determinant. 2. determinant zero not implies specific rows. 3. determinant not product of diagonal entries. 4. determinant is scalar not matrix.

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The amount of energy it takes to run a race is most likely to be a function of
the
OA. shape of the medal awarded
OB. day of the week
OC. number of people in the race
D. length of the race

Answers

The amount of energy it takes to run a race is most likely to be a function of the; D: Length of the Race

How to find amount of energy?

We want to basically find the factor that influences the amount of energy expended by a sprinter.

Now, formula for potential energy is;

P = mgd

where;

m is mass

g is acceleration due to gravity

d is distance covered

Now, the only option that falls into the input that affects energy expended is the distance covered. This is true because the more the distance covered, the higher the energy expended.

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QUESTION 7
A gambler who keeps placing $1 bets on roulette will after a very large number of bets, find that his average winnings per bet are close to $0.94.
The statistical term for the number $0.94 for this bet is:
A. the probability of winning.
B. the bias
C. the expected value.
D. the odds of winning.
E. a random outcome.

Answers

The average winning per bet is the mean or the expected value of winning a bet.

The statistical term that represents $0.94 is (c) the expected value

From the question, we understand that the gambler has an average winning of $0.94, when he places a bet of $1

This means that:

The average winning on a bet of $1 is $0.94

Average, in statistics means the mean or expected value

Hence, the statistical term for $0.94 is (c) the expected value

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Help this is geometry

Help this is geometry

Answers

Answer:

5) 35

6) 24

7) 28

8) 67

9) 20

10) 11

11) 7

12) 21

Step-by-step explanation:

Looks like you get most of the rules involved so I'll just write the steps

5) x+4x+5 = 180

5x + 5 = 180

5x = 175

x = 35

6) 6x = 144

x = 24

7) x+27 = 2x-1

27 = x-1

28 = x

8) 63+2x-17 = 180

2x + 46 = 180

2x = 134

x = 67

9) 9x-28 = 7x +12

2x = 40

x = 20

10) 5x+7 = 62

5x=55

x=11

11) 41=7x-8]49=7x

7=x

12) 114=6x-12

126=6x

21 = x

If you wanna check it just plug in the values

That's about it

5. x+4x+5=180 —-> 5x+5=180—> 5x=175—>x=35 (same side interior/supplementary)
6. 6x=144–> x=24. (congruent segments, are bisected)
7. x+27=2x-1 —-> x=28 (corresponding angles are congruent)
8. 2x-17+63=180 —-> 2x=134 —-> x=67
9. 9x-28=7x+12 —> 2x=40 —> x=20 (corresponding sides are congruent)
10. 5x+7= 82 —-> 5x=75 —-> x=15
11. 7x-8=41 —-> 7x=49 —> x=7
12. 6x-12=114 —> 6x= 126 —-> x= 21

Hope that helps!

If a fair die is rolled 7 times, what is the probability, to the nearest thousandth, of getting exactly 5 threes?

Answers

Answer:

0.119

Step-by-step explanation:

No. of sides a die has= 6 sides

No. of times it is rolled= 7 times

Total pairs= 6 x 7

                = 42 pairs

No. of 5 threes= 5 x 1

                        = 5

Probability of getting 5 threes= Favorable outcomes/Total outcome

                                                 = \(\frac{5}{42}\)

                                                 = 0.119 chance

∴ probability of getting 5 threes is 0.119

nts
A right cone has a height of VC = 40 mm and a radius CA = 20 mm. What is the circumference of the cross section
that is parallel to the base and a distance of 10 mm from the vertex V of the cone?
Picture not drawn to scale!
O Sn
O 8n
010mt
O 30m

ntsA right cone has a height of VC = 40 mm and a radius CA = 20 mm. What is the circumference of the

Answers

The circumference of the cross-section that is parallel to the base and a distance of 10 mm from the vertex V of the cone is 20π mm.

We have,

To find the circumference of the cross-section parallel to the base and a distance of 10 mm from the vertex V of the cone, we can consider the similar triangles formed by the cross-section and the base.

Let's denote the radius of the cross-section as r.

We can set up the following proportion:

r / 20 = (r + 10) / 40

To solve for r, we can cross-multiply and simplify:

40r = 20(r + 10)

40r = 20r + 200

20r = 200

r = 200 / 20

r = 10

Therefore, the radius of the cross-section is 10 mm.

Now, we can calculate the circumference of the cross-section using the formula for the circumference of a circle:

C = 2πr

C = 2π(10)

C = 20π

Thus,

The circumference of the cross-section that is parallel to the base and a distance of 10 mm from the vertex V of the cone is 20π mm.

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How many solutions exist for the following system if m1 ≠ m2?
y = m1x + b
y = m2x + b

answers:
1.an infinite number
2.none
3. one
4. the number of solutions cannot be determined.

Answers

Answer:

3

Step-by-step explanation:

Since the graphs aren't parallel due to not having the same slope we can assume they will intercept once

2(x - 3) = y + 1
Please help me

Answers

Answer:

y=2x-7, the slope is two and the y-intercept is -7

Step-by-step explanation:

2(x-3)=y+1

Distributive prop.

2x-6=y+1

Changing into slope-intercept form

y+1=2x-6

Subtract both sides by one

y=2x-7

The slope is two and the y-intercept is -7

A breast cancer test has a sensitivity of 92% and a specificity of 97.7%. Sensitivity means the probability of a positive result, given that you have the disease. Specificity means the probability of a negative result, given that you do NOT have the disease. The American breast cancer rate is 13%.
a) Based on these numbers, compute the probability that a patient has breast cancer, given that they get a positive test. b) What if the breast cancer rate is actually 8%? How does your answer to part (a) change?

Answers

a) The probability that a patient has breast cancer, given that they get a positive test is 0.13961

b) If the breast cancer rate is actually 8%, then the probability of the breast cancer rate is 0.094

a) First, we need to compute the probability that a patient has breast cancer, given that they receive a positive test result. This is known as the conditional probability.

Let's denote the following:

P(C) represents the probability of having breast cancer, which is given as 13% or 0.13.

P(Pos) represents the probability of a positive test result.

P(Pos|C) represents the sensitivity of the test, which is 92% or 0.92.

To calculate P(Pos), we can use Bayes' theorem, which states:

P(Pos) = P(Pos|C) * P(C) + P(Pos|~C) * P(~C)

P(Pos|~C) represents the probability of a positive test result given that the person does not have breast cancer, which can be calculated as 1 - specificity. Specificity is given as 97.7% or 0.977.

P(Pos|~C) = 1 - specificity = 1 - 0.977 = 0.023

P(~C) represents the probability of not having breast cancer, which is 1 - P(C) = 1 - 0.13 = 0.87.

Now we can calculate P(Pos):

P(Pos) = P(Pos|C) * P(C) + P(Pos|~C) * P(~C)

= 0.92 * 0.13 + 0.023 * 0.87 = 0.13961

b) In this case, let's assume the breast cancer rate is 8% or 0.08 instead of 13%. We need to recalculate the probability that a patient has breast cancer, given a positive test result (P(C|Pos)).

Using the same approach as before, we'll calculate P(Pos) with the updated values:

P(C) = 0.08

P(~C) = 1 - P(C) = 1 - 0.08 = 0.92

P(Pos) = P(Pos|C) * P(C) + P(Pos|~C) * P(~C)

= 0.92 * 0.08 + 0.023 * 0.92 = 0.094

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2. Rena mixes i cup of blue paint for every cup of red paint to make purple paint.
Enter the number of cups of red paint Rena mixes with 1 cup of blue paint.

Answers

1 cup of red paint for every 1 cup of blue paint the ratio is 1:1

2 3 6 4 5 4 4 4 3 2 5 3 6 6 4 1 1 2 3 2 4 2 1 4 2

What is the mean of this data set?

Answers

I think it is 1 I am sorry if I am wrong

Aika is building a square garden. She places a garden post at (3.5, 3.5). What is the location of the corner that reflects (3.5, 3.5) across the y-axis? Express your answer using decimal notation.

Answers

Given, Aika is building a square garden. She places a garden post at (3.5, 3.5)

To find: The location of the corner that reflects (3.5, 3.5) across the y-axis.

We know that the y-axis is the vertical line through the point (0,0) and it divides the plane into two parts: left and right. When we reflect a point across the y-axis, the x-coordinate changes sign. For example, the reflection of (2,3) is (-2,3).Therefore, the reflection of (3.5, 3.5) across the y-axis is (-3.5, 3.5)

Since Aika is building a square garden, the corner opposite to (3.5, 3.5) will have coordinates (-3.5, -3.5).

Hence, the location of the corner that reflects (3.5, 3.5) across the y-axis is (-3.5, -3.5).

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what is the equation that passes through the given point and has the given slope (-2, -1); m= -3

Answers

Answer:

y = - 3x - 7

Step-by-step explanation:

The equation of a line in slope- intercept form is

y = mx + c ( m is the slope and c the y- intercept )

Here m = - 3, then

y = - 3x + c ← is the partial equation

To find c substitute (- 2, - 1) into the partial equation

- 1 = 6 + c ⇒ c = - 1 - 6 = - 7

y = - 3x - 7 ← equation of line

Answer:

The equation would be y=-3x-7

Step-by-step explanation:

A rectangular sheet of paper is folded at the corner. Find the value of x.

Answers

Value of x is 66°.

Define angle.

Based on measurement, there are many kinds of angles in geometry. The names of fundamental angles include acute, obtuse, right, straight, reflex, and full rotation. A geometrical shape called an angle is created by connecting two rays at their termini. In most cases, an angle is expressed in degrees.

Given Data

A rectangular sheet of paper is folded at the corner.

Right triangles characterize both the folded-over region and its void. In the bottom left corner, there is a right angle that is marked at 33 degrees. Thus,

180-(33+90)

= 180-123

= 57° is what is left.

The angles in the triangle that has been folded over are the same.

To the left of x, there are two angles that meet at a straight angle. The sum of all right angles is 180 degrees. The 57° measure is shared by the two angles that make up the straight angle with x. This results in:

180-(57+57)

= 180-114

= 66°

Value of x is 66°.

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Find two integers whose sum is 2 and product is -3

Answers

Answer:

x = -1 and y = 3     x = 3 and y = -1

Step-by-step explanation:

The International Business Club starts the school year with $250.50 in their account. They spend $35 each month on activities. The Future Agricultural Leaders Club starts with $300 and spends $45.25 each month. Which equation can be used to find m, the number of months it will take for both accounts to have the same amount of money? 250.5 + 35m = 300 + 45.25m 250.5 – 35m = 300 – 45.25m 250.5m – 35 = 300m – 45.25 250.5m + 35 = 300m + 45.25

Answers

Answer:

250.50 - 35m = 300 - 45.25m

Step-by-step explanation:

Whenever an equation asks for when it will take x (or m in this case) amount of things or time you should know that there will be 2 different equations that have to equal each other

The equation will be 250.50 - 35m = 300 - 45.25m

The 35m is being subtracted from 250.50 because they are losing money each time they spend. This also applies to 45.25m

Also 35m and 45.25m are variables because it says they spend that much money each month. They don't specify how many months, so we have to put a variable after it.

Answer:

b) 250.5 – 35m = 300 – 45.25m

Step-by-step explanation:

on edge 2020 || pls mark brainliest

A rectangle has length 6 cm and width 4 cm. Give the length and width of another rectangle with the same area but a different perimeter.

Answers

Answer:

length could be 8 cm and width would be 3 cm and that would have a perimiter of 24 cm also

In a survey of 750 Americans conducted by the Gallup organization, 24% indicated a belief in reincarnation. Which of the following inference methods is appropriate for this situation? a) Confidence Interval for a Proportion b) Confidence Interval for a Mean c) Confidence Interval for a Difference in Proportions d) Confidence Interval for a Difference in Means e) Confidence Interval for the Mean Difference

Answers

The appropriate inference method for this situation is a) Confidence Interval for a Proportion.

In a survey of 750 Americans, the proportion of individuals who indicated a belief in reincarnation was found to be 24%. To estimate the true proportion of Americans who believe in reincarnation, a confidence interval for a proportion is the appropriate method. This allows us to estimate the range within which the true proportion lies with a certain level of confidence.

By calculating a confidence interval for the proportion, we can provide an estimate of the range within which the true proportion of Americans who believe in reincarnation is likely to be. This interval provides a measure of the uncertainty associated with our estimate and allows us to make inferences about the population based on the sample data.

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Hi, I'm in statistics, and I'm learning about probabilities of compound events. I have a question that I'm stuck on and was wondering if you could teach me how to do it for this problem and in general so I can use it in the future. I would ask my teacher, but my schooling is online due to COVID-19.

Hi, I'm in statistics, and I'm learning about probabilities of compound events. I have a question that

Answers

Given that there are 5 red 4 green and 3 blue balls

The probability of picking a blue and a red ball with replacement is

The probability of picking a blue ball

= 3/(5 + 4 + 3)

= 3/12

The probability of picking a red ball (after replacing the blue picked earlier)

= 5/(5 + 4 + 3)

= 5/12

Hence the probability of picking a blue and a red ball with replacement is

= 3/12 * 5/12

= 15/144

= 5/48

ASAP please help right now

ASAP please help right now
ASAP please help right now

Answers

Answer:

1

Step-by-step explanation:

Because the shape divided has to create another shape and for 1 it's an oval at the beginning and then after the lines of symmetry go through its seen as 8 triangles.

A family plans to have 3 children. For each birth, assume that the probability of a boy is the same as the probability of a girl. What is the probability that they will have at least one boy and at least one girl?.

Answers

Answer:

0.75

Step-by-step explanation:

The outcomes are equally likely, so the easiest way to work this problem is to write out the 8 outcomes in this sample space. In two outcomes the gender of all three children is the same (GGG, BBB). The other 6 outcomes contain at least one boy and one girl.

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Using the 14c calibration on the x-axis, what is the approximate age of the neanderthal fossil? 5,730 years old 34,380 years old 40,110 years old 45,840 years old?

Answers

Using the 14c calibration on the x-axis, the approximate age of the neanderthal fossils is (C) 40,110 years old.

What is calibration?Calibration is the comparison of measurement values delivered by a device under test with those of a calibration standard of known accuracy in measurement technology and metrology. A standard could be another known-accuracy measurement device, a device that generates the quantity to be measured, such as a voltage or a sound tone, or a physical artifact, such as a meter ruler. Calibration's goal is to reduce measurement uncertainty by ensuring the accuracy of test equipment. Calibration quantifies and controls measurement errors or uncertainties to an acceptable level.

So, using calibration on the x-axis, the approximate age of the neanderthal fossils came out to be 40,110 years old.

Therefore, using the 14c calibration on the x-axis, the approximate age of the neanderthal fossils is (C) 40,110 years old.

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The correct question is given below:
Using the 14c calibration on the x-axis, what is the approximate age of the neanderthal fossil?

a. 5,730 years old

b. 34,380 years old

c. 40,110 years old

d. 45,840 years old

Question 1 of 10
Which of the following are remote interior angles of <1? Check all that apply.

Question 1 of 10Which of the following are remote interior angles of &lt;1? Check all that apply.

Answers

Answer:

<5 is the remote interior angle to <1

They are on the same line, or, they are supplementary, and will add up to 180 degrees

The remote interior angles of ∠1 are ∠2 and ∠3.

Hence, Option (b) and (c) are correct.

What is mean by Triangle?

A triangle is a three sided polygon, which has three vertices and three angles which has the sum 180 degrees.

Given that:

A triangle with marked angles.

We have to find the remote interior angles of angle 1.

Now, We know that;

Remote interior angles are the two angle that are inside the triangle and are opposite from the exterior angle.

Also, Remote interior angles don't share a vertex or corner of a triangle with the exterior angle.  

Thus, for the remote interior angles of angle 1 are angle 2 and angle 3  as they do not share a vertex or corner of a triangle with the exterior angle.  

Thus, Option (b) and (c) are correct.

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A total of h males and (h - 2) females visit the museum on a certain day. If total of visitors for that day is 80, what is the value of h? A. 38 С. 40 B. 39 D. 41​

Answers

Given:

Number of males = h

Number of females = (h-2)

Total number of visitors = 80

To find:

The value of h.

Solution:

We have,

Number of males = h

Number of females = (h-2)

So, the total number of visitors is:

\(Total=h+(h-2)\)

\(Total=2h-2\)

It is given that the total number of visitors is 80. So,

\(2h-2=80\)

\(2h=80+2\)

\(2h=82\)

Divide both sides by 2.

\(h=\dfrac{82}{2}\)

\(h=41\)

Therefore, the correct option is D.

Write and evaluate the expression. Then, select the correct answer. Two less than the quotient of a number and four, increased by ten; evaluate when m = 12 2 4m -10, when m = 11, the value is 40 4m 2 10, when m = 11, the value is 60 2 -StartFraction m Over 4 EndFraction 4m 10, when m = 12, the value is 9 StartFraction m Over 4 EndFraction-2 10, when m = 12, the value is 11.

Answers

The expression is 2 - m/4 + 10, when m = 12, the value is 9. Then the correct option is C.

What is the linear system?

It is a system of an equation in which the highest power of the variable is always 1. A one-dimension figure that has no width. It is a combination of infinite points side by side.

Two less than the quotient of a number and four, increased by ten.

That can be written as in the form of m will be

\(\rm 2 - \dfrac{m}{4} + 10\)

If the value of m is 12, then we have

\(\rm 2 - \dfrac{m}{4} + 10\\\\\rm 2 - \dfrac{12}{4} + 10\\\\2- 3 + 10\\\\12 - 3 \\\\9\)

Thus, the expression is 2 - m/4 + 10, when m = 12, the value is 9. Then the correct option is C.

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Answer:

D

Step-by-step explanation:

a scientist claims that 9% of viruses are airborne. if the scientist is accurate, what is the probability that the proportion of airborne viruses in a sample of 596 viruses would differ from the population proportion by greater than 3%? round your answer to four decimal places.

Answers

The probability that the sample proportion of airborne viruses in differ from the population proportion by greater than 3% is 0.006.

According to the Central limit theorem, if from an unknown population large samples of sizes n > 30, are selected and the sample proportion for each sample is computed then the sampling distribution of sample proportion follows a Normal distribution.

The information provided is:

n = 596

p = 0.09

The mean and standard deviation are:

Compute the probability that the sample proportion of airborne viruses in differ from the population proportion by greater than 3% as follows                      

Hence, the probability that the sample proportion of airborne viruses in differ from the population proportion by greater than 3% is 0.006.

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Precision cuts has a target debt-equity ratio of 0.55. its cost of equity is 15.4 percent, and its pretax cost of debt is 7.8 percent. if the tax rate is 32 percent, what is the company's wacc?

Answers

The company's WACC is 9.95%. This implies that the company must generate a return of at least 9.95% on its investments to cover its cost of capital.

WACC (Weighted Average Cost of Capital) is a measurement used to determine a company's cost of capital. It is calculated as a weighted average of the costs of equity and debt, considering the company's capital structure. The formula for WACC is:

WACC = (E / V x Re) + [(D / V x Rd) x (1 - T)]

Where:

E = Market value of the company's equity

D = Market value of the company's debt

V = Total value of the company (equity + debt)

Re = Cost of equity

Rd = Pretax cost of debt

T = Tax rate

Given the following values:

Debt-equity ratio = 0.55

Cost of equity (Re) = 15.4%

Pretax cost of debt (Rd) = 7.8%

Tax rate = 32%

We can calculate the after-tax cost of debt, Rd, by multiplying the pretax cost of debt with (1 - tax rate). Thus,

Rd = 7.8% x (1 - 32%) = 5.292%

Now, we can substitute the values into the WACC formula:

WACC = [(E / V x Re) + (D / V x Rd) x (1 - T)]

WACC = [(1 / 1.55 x 15.4%) + (0.55 / 1.55 x 5.292%) x (1 - 32%)]

WACC = 9.95%

Therefore, the company's WACC is 9.95%. This implies that the company must generate a return of at least 9.95% on its investments to cover its cost of capital.

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