Answer:
a. 10.14%
Explanation:
WACC = wE*rE + wP*rP + wD*rD(1-tax) whereby;
w= weight of...
r = cost of..
Find the market values;
Common equity(E) = 5,000,000* 8 = 40,000,000
Preferred stock(P) = 10,000,000
Debt (D) = 100,000 *1000 *0.96 = 96,000,000
Total value = 146,000,000
Therefore;
wE= 0.2740
wP = 0.0685
wD = 0.6575
Cost of capital;
rE = 19% or 0.19
rP = 15% or 0.15
rD = 9% or 0.09
WACC = (0.2740*0.19) + (0.0685 * 0.15) + [0.6575*0.09(1-0.34)]
WACC = 0.0521 + 0.0103 + 0.0391
WACC = 0.1015 or about 10.14%
I am still working on my business plan.
Answer:
<u>E) recruitment and selection</u>
<u>Explanation:</u>
The <u>human resource department </u>of an organization is responsible for assigning tax to employees after recruitment based on their abilities.
Hence, the human resource team at ICS Inc needs to improve on filling the gaps in the organization or selecting the best employee for a particular job. This role involves providing clarity regarding the tasks employees are required to perform.
Option B
Cash flows that could be realized from the best alternative use of an owned asset are called opportunity costs
<u>Explanation:</u>
Opportunity costs describe the gains an individual, investor or firm misses out on when picking one choice over another. Bottlenecks are usually a basis of opportunity costs. Analyzing opportunity costs can lead you to extra effective decision-making. Opportunity cost investigation also performs a vital role in preparing a business's capital structure.
Opportunity cost cannot forever be completely quantified at the time when a decision has arrived. Alternatively, the person performing the decision can only approximately predict the consequences of various dilemmas
Answer:
The correct answer is letter "A": Shareholders who are risk averse may prefer some dividends over the promise of future capital gains.
Explanation:
A dividend is a cash distribution by a company to its shareholders out of the profits of a period. Capital Gain refers to the increase in the value of a capital asset or an investment upon sale. From the two of them, dividends are safer investments since they do not rely exclusively on the sales of an asset.
Thus, a conservative investor is likely to choose dividends over the promise of capital gains.
