What should you do under the trade credit terms

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Reference no: EM131320669

Cuts has a target debt-equity ratio of .48. Its cost of equity is 16.4 percent, and its pretax cost of debt is 8.2 percent. If the tax rate is 34 percent, what is the company's WACC?

11.28 percent

13.20 percent

12.91 percent

11.72 percent

12.84 percent

2. Assume an opportunity cost of 10%, what should you do under the trade credit terms, 2/10, net 45?

a. Forgo the discount and pay on Day 10.

b. Take the discount and pay on Day 45.

c. Forgo the discount and pay on Day 45.

d. Take the discount and pay on Day 10.Starbucks partnered with Arizona State University (ASU) to offer a custom online undergraduate degree program for all Starbucks employees, at an affordable price. What does Starbucks get in return for its investment?

Reference no: EM131320669

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