Answer:
Cost of equity is 11.2%
WACC is 8.74%
Explanation:
The formula for cost of equity is given below:
Cost of equity=risk free rate+(Beta *risk premium)
risk free rate is the treasury bill rate of 4%
Beta is 0.9
market risk premium is 8%
cost of equity=4%+(0.9*8%)=11.2%
WACC=Ke*E/V+Kd*D/V*(1-t)
Ke is the cost of equity of 11.2%
Kd is the cost of debt of 5%
t is the tax rate of 40% or 0.4
E is the equity weighting of 70% or 0.7
D is the debt weighting of 30% or 0.3
V is the E+D=0.7+0.3=1
WACC=11.20%
*0.7/1+(5%*0.3/1*(1-0.4)
WACC=7.84%
+0.90%
=8.74%
Answer:
The answer is 1.02
Explanation:
Asset turnover is an effiency ratio and it measures the how efficient a company is using its asset to generate profit.
The formula is Revenue or net sales / total asset
Revenue or net sales = $960,000
Total asset = $937,000
$960,000/$937,000
= 1.02
This ratio means that for every dollar in assets, the company generates $1.02
Answer:
30000 units.
Explanation:
Given:
Parwin Corporation plans to sell 29,000 units during August.
We can assume it as Cost of good sold.
If the company has 11,000 units on hand at the start of the month. We can assume it as Beginning inventory
And plans to have 12,000 units on hand at the end of the month. We can assume it as Ending inventory.
Question asked:
How many units must be produced during the month ?
Solution:
We can determine unit must be produced (purchase) during the month by this formula:
Cost of good sold = Beginning inventory + Purchase - Ending inventory
29000 = 11000 + Purchase - 12000
29000 = - 1000 + Purchase
Adding both sides by 1000
30000 = Purchase
Therefore, as Parwin Corporation plans to sell 29,000 units during August, he must produced 30000 units during the month.
This is referred to as dual enrollment.
Answer:
Price
Explanation:
While there could be more than one factor that influences a customer's decision to buy a product, the underlining factor that has the most weight with regards to decision making is the price.
If a customer wants to buy a jacket that costs $4.99 and sees another store selling a jacket of the same quality or even less quality at $3.50, he is likely to buy the cheaper one in order to save some extra cash. It is linked with the purchasing power of the customer.
