Answer:
WACC = 9.7%
Explanation:
First lets calculate CAPM to identify the return on equity.
CAPM = Risk free rate + Beta(Market Premium)
CAPM = 4 + 1(8) = 12%
WACC
= weight of equity * return on equity + weight of debt * return on debt * (1 - tax)
This gives,
=(12/12+4) * 0.12 + [(4/12+4) * 0.04 * (1 - 0.30)]
WACC = 0.09 + 0.007 = 9.7%
Hope that helps.
Answer:
$5,258,333
Explanation:
Arlington Company weighted-average accumulated expenditures
March 1 Expenditure $3,333,333
($4,000,000 ×10/12)
Add June 1 Expenditure $1,925,000
($3,300,000 ×7/12)
Add Dec 31 Expenditure $0
($5,000,000 ×0/12)
Weighted-average accumulated expenditures $5,258,333
($3,333,333+$1,925,000)
Answer: Copyright 1 - $0
Copyright 2 - $30000
Explanation:
Copyright 1 shouldn't be reported on the balance sheet. This is because the cost with regards to internally developed copyright will have to be expensed. Therefore, copyrights 1 on the balance sheet will be $0.
Copyright 2 will be reported on the balance sheet with a value of $30000. The copyright's cost of acquisition will have to be capitalized.
Answer:
$13,805 million
Explanation:
The calculation of free cash flow is computed by applying the following formula
Free cash flow = EBIT(1 - t) - Net Capital Expenditure - Net operating working capital
where,
EBIT(1 - t) is $16,300 million
Net capital expenditure is $2,445 million
And, the net operating working capital is $50 million
Now putting the items values to the formula
So, the free cash flow is
= $16,300 million - $2,445 million - $50 million
= $13,805 million
Basically we applied the above formula to find out the free cash flow
Based on the bid quote on the Canadian dollar, and the bid-ask spread, the ask rate will be $1.15.
<h3>What will be the ask rate?</h3>
This can be found as:
= Bid rate + (1 x bid-ask spread)
Solving gives:
= 1.1448 x ( 1 + 0.5%)
= 1.1448 x 1.005
= $1.150524
= $1.15
Find out more on the bid-ask spread at brainly.com/question/24280121.
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