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2 years ago

9

________is the american economist and professor who wrote the globalization of markets, in which he argued that international ma

rkets were converging because of technology and other factors.

1 answer:

PtichkaEL [24]2 years ago

5 0

Answer:

The answer is Theodore Levitt

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Take It All Away has a cost of equity of 11.08 percent, a pretax cost of debt of 5.38 percent, and a tax rate of 39 percent. The

Kipish [7]

Answer:

8.43 %

Explanation:

Weighted Average Cost of Capital (WAAC) is the Cost of long term permanent sources of finance. We consider WACC on the Market Weight of sources of Finance.

WACC = ke × E/V + kd × D/V

where,

ke = cost of equity

= 11.08 %

E/V = Market Weight of Equity

= 100 % - 34 %

= 0.66

kd = cost of debt

= interest × ( 1 - tax rate)

= 5.38 % × (1 - 0.39)

= 3.2818 %

D/V = Market Weight of Debt

= 0.34

Therefore,

WACC = 11.08 % × 0.66 + 3.2818 % × 0.34

= 8.43 %

4 0

3 years ago

Best Bagels, Inc. (BB) currently has zero debt. Its earnings before interest and taxes (EBIT) are $100,000, and it is a zero gro

nevsk [136]

Answer:

b. 11,001; $28.85

Explanation:

EBIT $100,000

zero growth rate

Cost of equity (Re) 13%

tax rate 40%

20,000 common stocks outstanding at $23.08

they want to change from 100% equity to 45% debt and 55% equity

WACC = 10.4%

new value of operations $576,923

PP's value of operations = {$100,000 x (1 - 40%)} / WACC = $576,923

the new stock price should = $576,923 / 20,000 stocks = $28.84615

Stock price will be $28.846

approximately $259,615 / $28.846 = 8,999 stocks should be repurchased

number of stocks remaining after the repurchase = 20,000 - 8,999 = 11,001

total capitalization = $317,308 / 11,001 stocks = $28.84 ≈ $28.85 per stock

4 0

4 years ago

arren has a loan with an effective interest rate of 5 percent per annum. He makes payments at the end of each year for 10 years.

Bond [772]

Answer:

interest portion of fifth payment = $66.89 ≈ $67

Explanation:

effective interest rate = 5% yearly

first payment = $200

second payment = $210

third payment = $220

fourth payment = $230

fifth payment = $240

sixth payment = $250

seventh payment = $260

eighth payment = $270

ninth payment = $280

tenth = $290

using a financial calculator, I determined the present value (principal) of the loan = $1,860.87

then I prepared an amortization schedule:

interest portion of fifth payment = $66.89 ≈ $67

6 0

3 years ago

Helen, a principal real estate broker, received a $5,000 check as a deposit with an offer to purchase on Monday. There was no st

Sphinxa [80]

Answer:

According to Oregon's administrative rules for real estate brokers, Helen has three business days to deposit the $5,000 check she received as deposit for the purchase offer.

She can deposit the check in her client's trust account or in a neutral escrow depository.

She has to decide on which account she will deposit the check by Thursday (end of the third business day deadline).

4 0

4 years ago

Wbs stands for which of the following project management tools

hichkok12 [17]

<span>Work Breakdown Structure.</span>

3 0

3 years ago