HELP PLEASE! 50 POINTS

Palencia Paints Corporation has a target capital structure of 35% debt and 65% common equity, with no preferred stock. Its befor

Arturiano [62]

Answer:

Cost of common equity is 15.7% and WACC is 7.2%

Explanation:

D1 is

D1= 2.25 (1+0.05)

The cost of common equity is

Rs = 2.36/ 22.00 + 5% =0.157= 15.7%

The cost of common equity is weighted average cost of capital (WACC)

WACC = (0.35) * (0.08) (1- 0.40) + 0 preferred stock+ (0.35) * (0.157)

WACC = 0.03 *0.6 + 0 + 0.054

WACC = 0.018 + 0.054

WACC = 7.2%

4 0

3 years ago

Assume that Jack and Hal and Sophia enter into an agreement for the sale of the restaurant. Hal and Sophia get a loan from the F

QveST [7]

Answer:

The best answer would be C. Fourth National Bank made an assignment.

Explanation:

The Fourth National Bank made an allocation of the loan as it was belonging to the Bank of North America stating that they got a loan.

6 0

3 years ago

Fill in the missing amounts.

aleksandrvk [35]

Solution

Yoste Company Noone Company

Sales revenue($100,000 + $5,000) $90,000 $105,000

Sales returns and allowances ($6,000) ($5,000)

Net sales $84,000 $100,000

Cost of goods sold($100,000 - $40,000) ($58,000) ($60,000)

Gross profit($84,000 - $58,000) $26,000 $40,000

Operating expenses($40,000 - $17,000) ($14,380) ($23,000)

Net income($26,000 - $14,380) $11,620 $17,000

Net Income divide by Net Sales = Profit Margin Ratio
Gross Profit divide by Net Sales = Gross Profit Rate

Yoste Company :

Profit Margin Ratio = $11,620 divide by $84,000 = 13.83%

Gross Profit Rate = $26,000 divide by $84,000 = 30.95%

Noone Company:

Profit Margin Ratio = $17,000 divide by $100,000 = 17%

Gross Profit Rate = $40,000 divide by $100,000 = 40%

6 0

3 years ago

A car's price is currently $20,000 and is expected to rise by 4% a year. if the interest rate is 6%, how much do you need to put

kati45 [8]

Answer:

$19,591.63

Explanation:

1. Calculate the price of the car in a year from now.

This is add the 4% on the current price:

$20,000 × 1.04 = $20,800

2. Calculate the amount of money that must be put aside to have $20,800 in a year:

Use the formula of monthly compound interest, with 6% annual interest

r = 6% / 12 = 0.06/12 = 0.05

P(1 + 0.005)¹² = $20,800

P = $20,800 / (1 + 0.005)¹² = $19,591.63

5 0

3 years ago

Which of the following is an advantage of the mall-intercept interview method? the interviewer can explain complex questions and

max2010maxim [7]

Answer:

The interviewer can explain complex questions and show visual aids if needed

Explanation:

The mall-intercept interview method is a technique in which people that are visiting a mall are stopped to ask them questions. This method allows to give detail explanations if people don't understand the questions, visuals can be used and it is easier to convince someone to participate in it when compare to other methods like phone interviews. According to this, the answer is that the advantage of the mall-intercept interview method is that the interviewer can explain complex questions and show visual aids if needed.

4 0

3 years ago