The Weston Enchilada Company has a levered equity beta of 0.8. The company is thinking about getting into the Whataburger business. Currently, Weston Enchilada is financed with 50% long-term debt. The debt is risk free and pays 4% interest before taxes. A little research suggests that the Whataburger business is expected to yield 16% on after-tax total operating cash flows. For comparison, another Whataburger in town has an equity beta of 2.5 but has 20% debt in its capital structure. You can assume that the market return is 12%, marginal tax rates on everything are 35% and the new project would be financed with 50% debt. Find the WACC for the new Whataburger venture and decide what Weston Enchilada should do

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.

Answera firm selecting a target market and the best marketing mix strategy