A firm uses only debt and equity in its capital structure. The firm's weight of debt is 40%. The firm could issue new bonds at a yield to maturity of 9% and the firm has a tax rate of 30%. If the firm's WACC is 11%, what is the firm's cost of equity

rE = 0.141333333 or 14.133333% rounded off to 14.13%

Explanation:

The WACC or Weighted average cost of capital is the cost of a firm's capital structure that can be made of one or all of the following components namely debt, preferred stock and common equity.

The formula to calculate is as follows,

WACC = wD * tD * (1- tax rate)  +  wP * rP  +  wE * rE

Where,

As the debt weight is 40%, the equity weight will be 1 - 40% = 60%

As we don't have preferred stock so our WACC equation will be,

WACC = wD * tD * (1- tax rate)   +  wE * rE

Plugging in the values in the formula,

0.11 = 0.4 * 0.09 * (1 - 0.3)  +  0.6 * rE

0.11 = 0.0252 + 0.6 * rE

0.11 - 0.0252 = 0.6 * rE

0.0848 / 0.6 = rE

rE = 0.141333333 or 14.133333% rounded off to 14.13%

answer: a. the kind of population living in your neighbourhood.

the census explorer data tool by the us census bureau allows the user to zoom in on any neighbourhood within the united states and find the kind of people residing in that by race and age.  

the tool needs to needs to be used twice – once in order to find what type of people reside in a neighbourhood, and then to see the age groups of the people in the same neighbourhood.