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Tutor profile: Lauren G.

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Lauren G.
Recent SMU Grad with BBA in Finance
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Questions

Subject:Pre-Calculus

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Question:

Reduce to the lowest terms: (5x^3) / (10x^7)

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Lauren G.

(5x^3) / (10x^7) = (5x^3) / (5 * 2* x^3 * x^4) = 1 / (2x^4) The lowest term is 1/(2x^4) found by canceling

Subject:Corporate Finance

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Question:

Why is the Weighted Average Cost of Capital (WACC) the right discount rate for valuing a firm?

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Lauren G.

This rate, calculated as WACC = (D/V) * Rd (1-t) + (E/V)* Re, takes into account the % return investors require based on total debt and equity and the cost a firm incurs. In return the WACC represents the required rate of return given the average risk of all future cast flows.

Subject:Algebra

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Question:

What is the value of (a^2 + x)/y when a = 4, x = 6 and y = 2?

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Lauren G.

11

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