Between and , the u. s. dollar ______ against the canadian dollar. between and , the u. s. dollar _____

Bargeron corporation has a target capital structure of 64 percent common stock, 9 percent preferred stock, and 27 percent debt.

dalvyx [7]

a.

WACC is calculated as –

WACC = (Weight of common stock X Cost of common stock) + (Weight of preferred stock X Cost of preferred stock) + (Weight of debt X After tax cost of debt)

WACC = (64% X 13.4%) + (9% X 6.4%) + (27% X ((1- 40%)*8.1%))

WACC = 10.46%

b. After tax cost of debt is calculated as –

After tax cost of debt = (1- tax rate) X cost of debt pre-tax

After tax cost of debt = ((1- 40%)*8.1%))

After tax cost of debt = 4.86%

6 0

3 years ago

If you ever need to file for bankruptcy, you should get the help of...

mina [271]

The awnser is A.)
I have done research and all ive seen is to get the court to file bankruptcy

6 0

3 years ago

Read 2 more answers

If nicotine in cigarettes is highly addictive, why would it make economic sense for producers of cigarettes to offer free sample

makkiz [27]

If the nicotine cigarettes are highly addictive and they were to offer the free samples to young adults then it will make the people be highly addictive in the nicotine cigarettes and this will cause the economy in the producers to have a less demand in elasticity. If it has a less elasticity, then it will cause a large price change, affecting the consumed quantity by the consumers.

8 0

3 years ago

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Last year Blease Inc had a total assets turnover of 1.33 and an equity multiplier of 1.75. Its sales were $205,000 and its net i

Whitepunk [10]

Answer:

Had it cut costs and increased its net income by this amount, The ROE would have changed 11.64%.

Explanation:

Old Net profit margin = Net income/ Revenue

= $10,600/$205,000

= 5.170731707%

Old ROE = Net profit margin*Asset turnover*Equity multiplier

= 0.0517*1.33*1.75

= 12.03487805%

New net income = $10,600 + $10,250

= $20,850

New net profit margin = $20,850/$205,000

= 10.17073171%

New ROE = 0.1017*1.33*1.75

= 23.67237805%

Change in ROE = New ROE – Old ROE

= 23.67237805% - 12.03487805%

= 11.6375%

Therefore, Had it cut costs and increased its net income by this amount, The ROE would have changed 11.64%.

6 0

3 years ago

An outside supplier has offered to provide the annual requirement of 7,200 of the parts for only $13 each. The company estimates

schepotkina [342]

Super corporation produces a part in the manufactures of its product. The unit cost is $21 computed as follows:

An outside supplier has offered to provide the annual requirement of 7,200 of the parts for only $13 each. The company estimates that 60% of the fixed manufacturing overhead cost above could be eliminated if the parts are purchased from the outside supplier. Assume that direct labor is an avoidable cost in this decision. Based on these data, the financial advantage (disadvantage) of purchasing the parts from the outside supplier would be:

$

Direct material 6

Direct labour 8

Variable manufacturing overhead 2

Fixed manufacturing overhead 5

Total cost 21

Answer:

Total financial advantage of buying from the supplier $43,200

Explanation:

Unit relevant variable cost of making= 6+8 +2 = 16

$

Variable cost of making ( 16× 7200) = 115,200

Variable of buying (13 ×7200) 93,600

Savings in variable cost 21,600

Savings in fixed cost (60%*72300 × 5) 21600

Total savings from buying 43,200

Total financial advantage of buying from the supplier $43,200

3 0

3 years ago

Between and , the u. s. dollar ______ against the canadian dollar. between and , the u. s. dollar ______ against the

Between and , the u. s. dollar against the canadian dollar. between and , the u. s. dollar against the