The main reason why a person would set up this business as a benefit corporation is to help school children.
<h3>What is a Business?</h3>
This refers to the buying and selling of goods or services with the main aim of making a profit.
Hence, we can see that based on the given scenario, there is the business of selling mittens and hats and also giving out a number for free to students, and the main reason why a person would set up this business as a benefit corporation is to help school children.
Read more about benefit corporations here:
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The answer is C. analyze your current personal and financial situation
Answer:
$25,000
Explanation:
The cash balance at the end of the year can be calculated as follows:
=> $12,000 + $2,000 + $7,000 + $4,000
Answer:
A) 10.15%
Explanation:
Cost of equity (Re) = 14.06% or 0.1406
cost of preferred stock (Rp) = 7/65 = 0.10769
cost of bonds (Rb) = 7.5% or 0.075
outstanding shares = 2.5 million shares x $42 = $105 million
bonds outstanding = $1,000 x 80,000 bonds = $80 million
preferred stock = $65 x 750,000 = $48.75 million
corporate tax rate = 38% or 0.38
total market value of equity + debt (in millions) = $105 + $48.75 + $80 = $233.75
WACC = [(outstanding shares / total market value) x Re] + [(preferred stock / total market value) x Rp] + {[(bonds outstanding / total market value) x Rb] x (1 - tax rate)}
WACC = [($105m / $233.75m) x 0.1406] + [($48.75m / $233.75m) x 0.10769] + {[($80m / $233.75m) x 0.075] x (1 - 0.38)}
WACC = 0.06316 + 0.02246 + 0.01591 = 0.10153 or 10.15%
