Answer:
9.564%
Explanation:
Given that,
Cost of Debt = 9%
Tax Rate = 34%
Weight of Debt = 60%
Cost of Equity = 15%
Weight of Equity = 40%
TipsNToes' WACC:
= [Cost of Debt × (1 - Tax Rate) × Weight of Debt] + [Cost of Equity × Weight of Equity
]
= [9 × (1 - 0.34) × 0.60] + (15 × 0.40)
= 9.564%
Therefore, the TipsNToes' WACC will be 9.564%
Answer: Related diversification
Explanation:
The corporate-level strategy that T&P appear to follow is related diversification. Related Diversification is a situation that comes into place when there is an expansion or an addition of a company's existing production line.
In this scenario, we are informed that T&P is in the process of acquiring another company, its major music store rival ReBop Records. This will lead to an expansion of the production line of T&P.
Therefore, the corporate-level strategy that T&P appear to follow is Related diversification.
<span>JAD, joint application development, is a joint process that uses both the user and IT together to create the application. RAD, rapid application development, is similar to JAD but is much faster and takes far less time. Both are fast methods and can save cost for a company. With JAD it is likely to get a more quality product due to the involvement of the user in creating the application.</span>
